THE MERCHANT SERVICE

Dominion, Volume 13, Issue 226, 18 June 1920, Page 8

THE MERCHANT SERVICE

RELATION TO BRITISH TRADE

VIEWS OF THE COMMISSIONER

•8 BETTER KNOWLEDGE OF MARKETS 10 NECESSARY, ir Interesting reference to tho import--16 ance' of the merchant service in its re- }' lation to' British overseas trade was 1 mado by Mr. It. W. Dal ton, His Maiesty's Trade Commissioner, yesterday, at the luncheon which was given in his honour by the Now Zealand Association I" of British Manufacturers and Agents, n "As far as the British manufacturer 0 jg - concerned, I think that we cannot ;e hesitate to believe that he is paramount i- in his ability to manufacture," said Mr. Ie Dalton. "Prior to the war he probit nbly failed a little in his distributing it organisation. Tor reasons which I havo 3- explained, from time to time, I do not n think that prior to the war such disis tributing organisation was nearly as necessary as it is to-day. I have the feeling.'too, that the British manufac--8 turer will realise that this reorganisas, tion is necessary and will go out of his [i way to effect it. I do not wish to be n misunderstood. It is not my idea at all |. to suggest that existing-channels rtf 1 trade should be sacrificed, but we need ,j more knowledge of our markets, more activity, and about all, more of tho I persona] factor working directly for tho e sale of British goods in particular. This j is coming to be realised, and trading 1, method which does not admit of these „ things will, I think, eventually 1)0 ruthj lessly abandoned. 0 "Backbone of British Trade," J "If we go back to the beginning of r British overseas trade we shall find that / it sas first carried out exclusively by the large merchant adventuring comj panies which were in the habit of purt chasing goods in England for indiscrim- , inate trading in countries where their f vessels called and purchasing products of these countries for resale in Euro- ' I pean markets. From these merchant ads venturing concerns there has gradually 1 grown up in the past years an immense j merchant service in the United Kingr dom. It may be at once admitted that I the strength of our overseas trading was j created by this merchanting service, but j it must be remembered too, that in the . early days Great Britain was the only . industrial country in existence. As comr petition began to arise from countries i which were" gradually developing their . industries, more strenuous efforts, to I place goods on overseas' markets, had i to be made. It became -impossible to > rely exclusively on firms in London . who, as Intermediaries, were concerned, i primarily, in the sale of goods bonght ; as cheaply as possible; Tho actual personar endeavours of the foreign competitors also mado it necessary, for British firms to adopt similar methods. I be- , lievo that the merchanting service to 1 whioh I have referred is still the backbone of British"overseas trade, and I Bee no reason at all why it should not re- '■ main so. There can be no doubt that it renders, valuable service in many ways, but . I think that it must be reoognised, also, that what is most lackjng in British overeeas trading organisation is the knowleflge of overeeas markots on the part of manufacturers themselves, If- the merchant service will admit, that changed conditions have made this knowledge necessary, and if .they will show a disposition to place their own knowledge freely at tlio disposal of manufacturers and believe that the extension of the trade of individual firms can also bring with, it an extension of their own trade, then I believe that the merchant service will still continue to be the main channel of tTade between Great Britain and overseas countries,, but I" feel, too, that if manufacturers find out, as they are beginning to find out, that thev can extend, their trade more, rapidly by a more direct personal touch with, overseas markets, then I think that we shall find manufacturers doing their own overseas ■ trade to a much larger degree. ■Operations of Agencies. . "I have 6aid frequently that I helisve that the direct agent operating in overseas countries, working for a commission, actively engaged- in intro-ducing-the goods of-particular manufacturers, is the best method that can hp adopted" for the extension of trade. I see-no reason at all that this'system should not operate side by side with the merchant service, acting • as buyers and sKippers and reaping themselves the advnntdgs' of trade done by overseas agents, But whatever we may or may not feel about it, the truth is that British manufacturers are becoming more and more disposed to establish agencies so that they may operate with morejn- ' telligenoe the markets which they supply. The end of the war «id the need for much extended overseas trade are bringing all thjjse questions much more to the front. As far as New Zealand is concerned, I know that this Dominion is anxiously awaiting the recovery of British trade here, and I believe from my experience in England that the British manufacturer is anxious to come here, 60, one should have no fear regards ing future of British trade in this Dominion." .