The Press. WEDNESDAY, JANUARY 27, 1909. THE DECLINE IN BRITISH TRADE.

Press, Volume LXV, Issue 13333, 27 January 1909, Page 6

The Press. WEDNESDAY, JANUARY 27, 1909. THE DECLINE IN BRITISH TRADE.

Some startling figures relative to the decline of trade came a day or two ago from Berlin. It was stated that during last year trade in Great Britain declined to the extent of £101,482,000;' Germany £35,000,000, Franco £18,250,000, and the United States £95,436,000. At first sight it appears almost incredible that Great Britain should actually show a greater decline than the United States with its-huge industrial and financial crisis. It must be borne in mind, however, that by "trade" is-—ere meant import— and exports combined, and that although there was a large in American imports owing to the crisis, yet an immediate result of the latter was to give a great stimulus to exports. Wheat, cotton, and other articles of moTchandiso were at once rushed to Europe in large quantities to obtain the gold which instantly became an object of frantio desire all over the United States. The comparisons between the relatively small decline in Franco and Uermany as compared with the huge falling-off in Great Britain •will no doubt be seized upon by the tariff reform advocates as confirmation of their views, seeing that both France and Germany are protectionist countries. We should want to know something more of the details, however, before accepting this argument, and there is the very obvious fact that if France and Germany are protectionist, America is protectionist flso, and her fiscal policy did not protect her from one of the severest attacks of trade depression ever experienced by any country in tho world.

"The Economist" of December 12th, received by last night's mail, shows that the depression in England must havo reached its lowest depths in the gloomy month of November. 'O.he totals both of imports and exports were fcelow tho "corresponding fig—res not only for 1907, but for 1906, tho year •b«fore tho boom in foreign trade reached its highest point. As compared with November 1907, the import figures for '1908 showed a decline of £7,237,650, or —2.7 per cent., and the export figures a decline of £6,714,761, or 18.7 per cent. These figures, as our contemporary remarks, aro discouraging enough and showed little indication of a revival of trade. There are one or two mitigating points, however, •a.hen the figures come to be analysed. Most important is tho fact-that the fccaw fall in the value of exports and imports was mainly the result of depression in one particular industry— cotton. To prove this the "Economist" -hows the decline of values, actual and

proportionate, in the imports of five important trades:— _ Vcz cent. Raw cotton .- 2,528.310 2D— Wool .. .. 62>,fi8_ 19.1 Other textiles .. 213.339 14.4 Oil seeds, etc. .. 473.417 19.0 Iron ore .. .. 9.7 Thus, of these five industries cotton lost in imports 10 per cent, more than amy other. The imports of raw materials (measured by money) was £4, 740,000, and 53 per cent, of this W3S _ccou„ted for by the decline in raw cotton. Tho export of manufactured articles amounted in November to £22,184,318, which was £5,625,500 less than in the corresponding month of last year, the decline being equivalent to 20.2 per cent. But just as the fall in raw cotton a©counted for more than half the decline in tho import of raw materials, so the decline in cotton goods was responsible for moro than half the loss in manufactured articles. Tho following tablo, quoted from our contemporary, gives the exports of tivo manufactures in addition to coal, which is it—o only important raw material exported from Great Britain: — £ Per cent. Cotton manufactures .. 3,-53,44_ 34.5 Woollen aj_nufact— t«s -72,178 23.4 Iron and steel .. 067.412 18.0 Machinery .. .. 271.371 9.6 Chemicals .. .. 11?,7ai 8.2 Coal .. .. 748,443 19.1 It will thus be soon that I_incas—ire was the storm centre of the industrial depression in England, and this really come as a reaction from her enormous prosperity during tho last few years. Lancashire was affected, in common witSi other parts of tho world, by tho America—, crisis, but in her case the harm was done in injuring the Eastern markets, which sell to America, and buy from Great Britain. "America buys " silk from China and Japan, China " and Japan buy cotton goods from " Lancashire with the proceeds of the ''silk, and La.nca-hiro, in turn, buys "raw cotton from America. So it "comes about that the English cotton " industry, which has a comparatively " small market in tho United States, i 6 '' tJhe hardest (hit by tho United States " crisis, and suffers longest from the "subsequent depression." It is an interesting examplo of the complexity —nd interdependence of modern trade relations. At tho same time it gives ground for hope th—t with the revival in trade reported to have begun in Anlerdoa, _ beneficial impulse will bo given all along the line until it reaches Lane—shire. In mo very long time afterwards we in New- Zealand ought to feel the benefijt also in improved prices for our frozen meat and other produce.