BRITISH TRADE OUTLOOK.

Digger (Invercargill RSA), Issue 27, 17 September 1920, Page 3

BRITISH TRADE OUTLOOK.

"PERIOD OF DECLINING PPJCES."

In a review .of trade conditions and prospects qf the United Kingdom, made about the middle of July, it is stated that within the preceding two months there had been a relatively rapid change iii the whole business position a'nd outlook" of the country. Whatever doubt n>ay at first have been felt as to tha permanence or otherwise of the relaxation of post-war boom conditions, there ean now no longer be any question that a period of declining prices has been entered upon, which is beginning to affect all industries in a greater or less degree. The outstanding fact appears to be in the present situation that the immediate urgent needs of the world have been gatisfied. Where this is not tho case, as in Central Europe, Russia, and elsewhere, the financial position precludes any effective demand. Lacking credit, and therefore inadequately supplied with fhe raw material for manufacture, the exchange of commodities becomes impracticable. The fall in silver has severely check. ed Great Britain's Asiatic trade, while Japan is still suffering from the financial crisis. Thus the fact has to be faced that, from one cause or ahother, a large part of the world is not hungry for British goods. There is, at all events, a decided pause in buying, and eompetitive conditions are once more coming into force after a period of practicai monopoly. In America the tendency suggests'a much keener development of the export trade than obtained prior. to 1914, and although at present competition from the United States and elsewhere is not very prononnced, it has to be taken into account prospect! veiy. It is in the relation to home affairs, however, that the most serious and immediate problems of the trade position have to be reckoned with ; no greater financial or economic problems have ever confronted the leaders of British industry than is the case to-day.