THE OUTLOOK

Dominion, Volume 10, Issue 2955, 15 December 1916, Page 18

THE OUTLOOK

IMPERIAL TRADE PROBLEMS POSITION OF THE BRITISH MANUFACTURER (By liis Majesty's Trade Commissioner, Mr. It. W. Dalton.) The war inevitably must leave its mark 011 all social and economic conditions, but in 110 direction is it likely to have a greater effect than on the attitude of' individuals alnd Governments towards trade and industry.. This influence will not be felt in the belligerent countries alone; it must, without doubt, be world-wide in its incidence. It is therefore vitally necessary that business people, as well_ as Governments, should at present review tlio situation very carefully, and, in the light of past as well as present events, formulate a course of procedure for adoption when more normal conditions prevail. So far as the Empire is concerned it is well to realise that whilo the belligerent countries are now more particularly concerned with the prosecution of the war, certain other countries, not so immediately affected, are able while the war .lasts to revise their position in relation to world trade,' and to gain an undoubted advantage, in time, at least, in organising for the new conditions which will prevail after the war. It is obvious, therefore, that whatever time can be given within the Empire at present should be given to, _this problem, so that when the wax is "over some definite and concrete plan may bo ready for immediate adoption, in part, if not in entirety. It is with this object in mind that manufacturers, commercial men, and the Government at Home are sparing some thought, in tlio great stress ■under which thoy are working, for the establishment of a foundation for economic recovery when the war is over. That they are right in so doing there can bo little doubt, oven if tho fact that they can do it during sjich a crisis is cause for astonishment.

For obvious reasons opinion at Home lias very much favoured the international theory of trade, and tho right of the business man to work out his own salvation without too much artificial help. Prosperity and depression have alternated 111 almost regular cyclos, certain industries havo disappeared, or almost disappeared, either because, of competition on unequal terms or because we have not been as well placed as other countries to engage in snoh industries. But with all the fluctuations of trade the United Kingdom has always been ablo to maintain its supremacy. In times of anproacMucr prosperity wo were almost alwavs the first to feel the influence, and when degression was coming it came to' us last; It was only to ho expected that new and growing countries should find a-place on the world's markets. If their riso has been rapid and their percentage increase greater than ours this, too, was only to bo oxpeoted, on the ground that youth grows more quickly than ago. The last few years prior to the war, however, witnessed a new spirit in British trade, and it. is ouito reasonable to believe that had the war not taken place we should have recovered again some of the ground we were, said to have lost.

The war has morelv broncht a greater opportunity, and a strong impetus to a spirit which wdt alreadv crowing. In addition, it lias shown that _ absolute freedom of international ' trade (this 1711110114 reference to fiscal policies) may b0.., undesirable .in.. any ...event,... hut

is certainly so when one of the greatest of the trading countries is forging trade as a weapon. To what extent and by what means industries which are essential to the prosecution of war should bo kept alive in tho country, whether or not they can be maintained in accordance with economic theories or not, is not amongst the least important of the questions which must be faced. When war broke out it is well known that there were certain industries without which war could not be carried on, which, did not exist in the United Kingdom. The fact that the.v do exist now is an evidence of the adaptability of the British industrial mind, and- is not in any wa,y proof that such matters can be left to right themselves in- times. of emergency. Industries for war can only bo safely and properly built up in time of peace.

It is largely since the outbreak of war that we have learned fully by what artificial and often questionable means German trade has boen built up. House working under sordid conditions, Government financial help, subsidies, dumping, bank assistance, freight preferences on British ships to German goods, corruption, Cartel schemes, and similar arrangements are a few of the reasons for the growth of German trade. Our manufacturers have been frequently criticised because they havo not competed with Germany. It is for buyers to consider whether they would wish British firms to adopt- some of the methods adopted by Germany.

' The point for consideration now, however, is that it is only necessary to know of the nature of unfair competitive methods to remove them. It is the study of tlieso methods and the best means of neutralising. them which must concern the minds of all business men. at the present time. It is obvious that Governments will concern themselves with trade questions much more after the war than they have' done before. So far as the British Government is concorned, while attention" must of course be paid to tho development of industries at Home, it is clear from recent happenings that greater caro is" to be taken, particularly of export trade. The marketing of British goods overseas is a question which requires special treatment. It is well known to those who have interested themselves in the development of British export trade that British goods have never had the chances they should have had in competition with tho ohoaper goods of some ' foreign countries. Substitution of British designs in cheaper foreign goods, tho wilful diversion of orders from the United Kingdom to foreign countries by intermediary parties, the supplying to buyers of foreign goods on the understanding, implied or expressed, that they wore British, the possibility of higher profit on a cheaper article, and a hundred and one other causes have interfered with the proper expansion of British trade, even though tho final consumer, whether in the Dominions or in foreign countries, almost always prefers to buy a British article, if lie can, even though the price may be slightly lusher.

The closer touch which now exists ■.between manufacturers and the Government/ and the greater knowledge of a number of underlying causes for thei diversion of trade, together with such schemes as the reorganisation of tho Commercial Intelligence Department of the Imperial Board of Trade, and the possible establishment of a Trade Bank with branches in all important markets, will do a very great deal to bring back tho British manufacturer into possession of what should rightly have been his- But tho most'hopeful feature'of tho new possibilities lies with the manufacturer himself. It is hardly, necessary to repeat what must bo an obvious fact that the extension and reconstruction of works which have been effected in the' United Kingdom since tho war. will by. increasing output both cheapen production and riiake it incumbent 011 tho manufac-l<

turer .to look for trade with greater keenness than evor before- The nature of the machinery installed will also necessitate the production in soma classes of trade of cneaper, more standardised, articles. This expansion ou works and their improvement have not been only in trades which are popularly supposed to be the only munition trades, but they have been effected throughout practically the whola of industrial England.

So it is possible to look forward to the end of the war with confidence thafc both by his own effort and with the help of the Government the British manufacturer will again achieve pre-emin-ence. The great energy of the manufacturers themselves and their ability, to competo with all their rivals, together with the judicious overlooking of trade and trade' channels by the Government institutions established for that purpose, offer a strong guarantee of success. Tho patriotism of "the individual consumer in every part of tho Empire will bo an additional factor in securing for tho British manufacturer his old position.