OLD AND NEW.

Auckland Star, Volume LXVIII, Issue 127, 31 May 1937, Page 4

OLD AND NEW.

— I MODERN TRADE TRENDS. I

EFFECT ON BRITAIN. SELECTING IctARKETS. The changing trend in national trading | was discussed in an article recently con; tributed by Mr. S. R. Beale, chairman oi the British firm of Guest, Keen and Xettlefolds, to the "Sunday Times.'' Up to the war and, indeed, almost up to the present day, says the writer, the governing conditions of British industry were that we had an expanding population, that we were dependent very largely on a steadily and regularly increasing foreign trade, and that we had complete freedom in which to express our individuality. To-day those three conditions are reversed. We have an almost stationary population. Until recently we have seen our foreign trade dwindling, though, happily, there have been signs of recovery during the past year. And whether we like it or not, we seem to be in for a period of greater or lesser control. ■\Ye may have to look at the whole problem from a rather different angle. If we are coming to a stationary population, there will not be a steadily increasing number of operatives, nor a steadily increasing number of consumers to take what we make; and if many nations of the world are determined to make for themselves, whether economically or not, those products which they used to take from us, it will be difficult for our foreign trade to recover its old volume, however cunning or clever we may be in the arts of salesmanship.

Foreign Markets. It is of little use to try to compete in overseas trade with the manufactures of those countries whose Governments are prepared to subsidise them heavily for such foreign trade as they do. In the Chambers of Commerce we have been insistent on pointing out to the nations of the world that international debts can'be settled only by.the creditor accepting payment in goods and services, and. w« must not surely grumble if the debtor countries choose to stimulate their export trade by taxing the home consumer as a means of paying their debts by the only method we hold they can be paid, however unpleasant it may be for us. We are probably all familiar with examples of German and Japanese competition, and I do not believe our Government can do anything about it. Such steps as can be taken will, I think, have to be taken by the individual trade organisations concerned getting in touch with their opposite numbers in.these exporting countries, and making trade- agreements based on-prices or territories, as the special conditions of each case may make most desirable. '."",-■ Butj in- saying this, I am in. no way criticising the effort*. our Government have made to help us. On the contrary, by their tariff policy, they have given us confidence and courage. By their trade agreements they have undoubtedly given us better opportunities and taken advantage, on our behalf, of our strong buying position as a country.

Trade Barriers. I do not believe that grumbling about trade barriers is going to do much good. After all, nearly all our old export trade was done against tariffs, and a great proportion of our own rising imports is in spite of tariffs. I doubt even whether in certain overseas markets where we | used to be supreme we ought to try to ; compete with the newer manufacturing countries whose efforts are supported by a much lower standard of living and Government subsidies. We might do better to leave the development of certain cheap markets, to. them; and we should hope for and encourage their gradual rise in prosperity, knowing that our best customers always were the most highly developed countries. As thev prosper, and as the markets they are developing prosper, and their demands increase on a rising standard of living; they will be more, inclined to come to us for-. : gpods they do not produced and what important, they will more able to pay for wlpt they buy. No Saturation Point. So I suggest that any recovery in our overseas trade must be gradual, and that its greatest possibilities will be found to lie _in the supply of those products for which a rising standard of living increases the demand; Probably the demand will be for whit we ourselves, with our very high general standard, produce ani. consume. There are those ■ who are always foretelling, the collapse of the home demand when saturation point is reached. But as saturation point never has been reached when this market was open to the world, I cannot see Why we should- assume that it will be rea-ched now we-are supplying its demands ourselves.