British Trade Conditions.

Press, Volume LVIII, Issue 17343, 3 January 1922, Page 6

British Trade Conditions.

"Of all human follies," remarks Sir Leo Chiozza Money in his interesting ""Work of the World" column in the London "Observer.'' "the worst is a '• propagation of woe. . . . You can "stampede a market by falsely crying " 'Ruin.' " He therefore tries, while not seeking to cover up unpleasant facts, to present to his readers the bright side of tho commercial and financial situation, so far as that ia possible. Happily, it is a task of somewhat less difficulty than was tho ease some time ago. Writing at the end of October, he found unmistakable signs that the corner had been turned. There were indications of trade improvement in the quarters whence the world depression originated—in the United States, a revival in iron production was noted, and in Japan, which was buying a little more freely. Difference of opinion exists as to how long the process of recovery may take. Some authorities believe it will be slow, others that it will be as sudden as was the decline. Tho weight of argument seems to rest with the former class, but even so cautioua a prophet as Sir Leo thinks it Js quite likely that "in "two years' time we," that is, Great Britain, "shall be enjoying an over"sea trade as great in volume as that "of 1913." At present Britain's oversea trade is about equal in volume to that of 1900, which was the year of good trade. If there is reason to deplore, as indeed is the case, tho loss thus indicated of twenty-one years' progress, the optimist we have quoted finds it not a little wonderful that after four years of world-war the country should be enjoying as big a trade as now actually obtains. It would be considerably largor were it not that the brunt of the depression is being borne by Britain's most essential industries. especially by engineering, shipbuilding, and coalmining. Tho slump in mining is unfortunately due, in some measure, to the operation of the Treaty of Versailles, under which Germany is delivering to Belgium 231,000 tons of coal a month; therefore British coal exports to Belgium have dropped to a little over one-tenth of what they were in 1913. "Add to "Belgium the cases of France and "Italy, and we begin to realise what " reparations spell to British work." Yet in spite of this deplorable feature of British trade, the prospect is not hopeless. The year closed on a brighter note than waa indicated six months ago. The huge volume of business that was done just before Christmas in giltedged securities was a good Bign, and the expected i eduction in the bankrate to 4$ per cent, showed that there ia more money about than was the case twelve months ago. From New Zealand's point of view, the reports of the cheerful and firm tone of the Bradford wool market were most welcome news, while the position of the woollen trade in France was also most gratifying'. As tho head of a large English business firm, now visiting Australia, remarked the other day, " We are not out of tho wood yet, but " there are distinct signs of improve"ment." And in the improvement of England's trade lies the best hope for the greatly-desired revival in New Zealand,