REVIVAL OF TRADE

Dominion, Volume 24, Issue 52, 25 November 1930, Page 9

REVIVAL OF TRADE

Snowden Confident CHANGE FOR BETTER “Will Come Rapidly” STIMULUS TO BUSINESS The Chancellor of the Exchequer, Mr. Philip Snowden, speaking at a dinner to Imperial Conference delegates, nt Farnham, expressed the belief that the dark clouds hovering over many industries would soon disappear, and that within a year trade would have taken a turn for the better. “There is. no need to despair about British trade,” declared Mr. Snowdon, (Rec. November 24, 5.5 p.m.) British Wireless Rugby, November 23. In his speech Mr. Snowden said he shared the view of the Federation of British Industries, whose latest report claimed that there were signs of improved trade. He added: “When it does come I think that it will come with considerable rapidity. So

long as prices are low and there is an impression that they have not touched rock-bot-tom, there will be a reluctance to buy, but as soon as an Impression becomes general that prices are rising it will be a very great stimulus to trade.”

He expressed confidence in the future of British trade. Its percentage of the total of the world’s trade was slightly less than formerly, but as other countries became industrialised that was inevitable. It was volume not proportion that mattered. Trade in its Infancy. World trade was still In its infancy. At least two-thirds of the population of the world had still a low standard of living, and as they progressed their demands for manufactures from other countries would Increase. Speaking of world conditions which had contributed to the trade depression Mr. Snowden said he welcome' 1 the increasing attention' being paid t the effect of a monetary policy m i Industry. He had no doubt that in forested Governments would give serious consideration to and take any necessary action upon the report shortly to be Issued by the League of Nations Committee which had been examining the subject. Cheap Money Needed. Cheap money was an essential condition to trade recovery, but he did not say that cheap money alone would bring a great revival of trade. There could be no revival unless there could be nn assurance that we were going to have cheaper money—not only cheap short-term money, but cheap longterm interest rates. During the last twelve months there had been a fairly considerable reduction in the price of long term money. He thought that the tendency was now permanent toward a reduction in the price of long term borrowing. He spoke with great reserve upon this matter because he found that observations he had made at Mansion House a few weeks ago had created expectations that the Government might endeavour at an early date to carry out a large State conversion of that terrible Incubus—£2,ooo,ooo.ooo of 5 per cent, war stock. Therefore he would say no more than this: that the effort i’ould be made when, in their opinion, the time was favourable. TRADE RESOURCES India’s Potentialities COMPARISON OF FIGURES Bir Telegraph—Frets Association—Copyriglit London, November 23. In his speech at Farnham Mr. Snowden said that the Government was anxious to develop trade with the Dominions, but an increase of £1 per head in that trade would only amount to £20,000,000, whereas a farthing a week per capita increase in trade with Indin would mean £(>0,000,000 yearly.