BRITISH TRADE REVIVAL

Press, Volume LXXII, Issue 21714, 22 February 1936, Page 13

BRITISH TRADE REVIVAL

BASIC INDUSTRIES MAKE GOOD PROGRESS UNEMPLOYMENT DECREASES (FBOM OUR OWH COBKEBPONDENT.) LONDON, February 4. There is every reason to believe that the millions of wishes expressed during the last week for a "Happy New Year" will be fulfilled, says a Writer in the London "Observer. It is a long time since the nation pegan a New Year with so much to justify the. hope for better times. _ In the first place the last yett closed with a Very substantial aecrease in the army of unemployed. The total is still at 1,866,565, but it is 49,997 fewer than at the end ot November, and 21*7,250 less than a year ago. The increase in employment was well spread over a wide variety ot industries, but it was particularly gratifying to find improvement in the coal mining, iron and neering, and cotton industries, mere .is abundant evidence that these great •basic industries are steadily moving I forward under the stimulants ot 'sound national finance, a protected home market, internal rationalisation, and sympathetic Government aid. The unemployment figures show that the revival has been sufficiently strong to overcome the normal seasonal decrease, while the spreading of it to such seriously depressed industries as ship-building and cotton is an exceedingly good augury for the future. A . There is also every reason to hope that the improvement in foreign trade noticeable during the last year will be continued. In the first 11 months of the year British exports rose by £29,163,966, as compared With 1934, and £54;025,146, as compared with 1933. In the 11 months, British goods to the value of £391,037,481 have been sold to overseas customers, and the total for the year will be well over £420,000,000, a figure that has not been exceeded since 1930. More Money More employment has meant more money in the pockets of the people. This was evident at Christmas, when the Treasury notes in circulation had to be increased by £25,000,000 in order that there should be enough to go round. „ Even more striking evidence of all-round activity and growing prosperity is to be found in the banking turnover, which, in the year, reached the huge total of £37,559,751,000, an increase of £2,075,594,000 on the previous year. . There is more money in the savings banks, the total due to depositors in the Post Office and the Trustee Savings Banks being £586,300,000 against £537,100,000 a year ago. National Savings certificates held by the people now total £504,000,000, against £495,200,000 a year ago. Luilding societies and insurance companies have been doing record busill6SS. There is no sign of any interruption in the steady progress made by the iron and steel industry. With the home market reasonably protected and an equitable arrangement regarding exports, the industry went steadily forward, throughput last year. Steel production in November reached 903,300 tons against only 766,000 tons in the same month of 1934. The year's total it is estimated will be no less than 9,850;000 tons, which will surpass the previous high record of 1917, when the war's demands sent the figure up to 9,716,000 tons. . ' ■' Similar progress is reported in the production of pig iron, which throughout the year has averaged more than 520,000 tons a month as compared with under 300,000 tons a month in 1931. To-day there are more than 200,000 workpeople in the industry as compared with only 146,000 three years ago. Shipbuilding Everything at the moment points to a still larger demand for iron and steel products. Plans for new budding passed by tycal authorities continue to reach a high level, the total passed in November being for £9,880;000 against £8,100,000 a year previously. Large expenditure totalling more than £30,000,000 by the railway companies with the as-1 sistance of Government guarantees Will mean a substantial expenditure on iron and steel products. The outlook for the shipbuilding and ship-repairing industry is decidedly better than it has been for some years. This industry has had the unenviable notoriety of being the most distressed of all. Its unemployment percentage reached the exceptional figure in 1932 of 63.1, and it still stands at over 37 per cent., or more than.double the average unemployed figure for the Whole of the country. ■ The reduction in the percentage ; in. tUe last tKree years has been due as much to the falling off in the number of men seeking employment in the industry as to increased trade. The position to-day, however, is showing a substantial change. Since October orders for merchant ships have been received in greater volume, and 1936 has opened with merchant tonnage under construction approaching the three-quarter of a million mark for the-first time in the last five years. There are also about 40 warships under construction, while orders have recently been given for two cruisers and a destroyer flotilla of ' nine ships. Extensive replacement 1 orders are also anticipated under the ■ Government's defence plans. The improvement has been felt in all districts.