ANGLO-AMERICAN TRADE RELATIONS.

Dunstan Times, Issue 3131, 21 August 1922, Page 8

ANGLO-AMERICAN TRADE RELATIONS.

Sir Auckland Geddes in an address at Chicago to a gathering of .merchants declared that of all the nations) of the world there were no twoso closely interlocked bv ties of trade, commerce, and finance, as the United States and Great Britain. He continued: "Now, the interlocking of your prosperity with ours i« extraordinarily close. Even' before the war, in 1913, no less than 40 per cent, of your total foreign trade was with the British Empire, and that amount rose in importance during the years of war, and' rose hi its percentage, so that now, according to the latest tirade returns, your foreign trade is, so far ate 46.75 i>er cent, of ntl Tfl concerned, carried on with the British Empire And as to your European trade, taking that apart from the rest of your foreign trade, 46 per cent. again is the figure which goe* to the British territories in Europe. Taking the Americais as a whole, no less than 02 per cent, of your foreign trade is with British territories in America. "Thoisc aire astounding figures. I quote them merely to make this point clear: that your foreign trade and the prosperity that cornea front it aire largely dependent upon the capacity of the British Empire to buy your goods and to pav tor them in dollars in America." The Ambassador then proceeds to show that during the past eight years a great change has. come in the position of' Great Britain with regard to her capacity to pav in dollars for the goodn which she takes from the United States. "You all know that during the early years of the war. the British Government took over from the British citizens who had investments in this country those investments and sold large quantities of them to pnryide dollar credits to pay for the munitions, the food, and the raw materials required for the prosecution of the war. As a: result, those investments passed into the hands of American citizens. The interest on them, no longer accruing to British subjects, no longer provides credits to pnx in gteat part for your export si to the British Empire. "Another large part of the British purchases in this country was paid, for through credits established on account of services rendered by the British mercantile marine. by British insurance companies, by education given in Britain, and in other tess important ways. There is a great change, again as a result of the war. now taking place in connection with the rendering of those services. You. in your own interest, are building up a great mercantile marine. If is of course your right to do so ; but let us remember that, when it conies to the question of the balance of trade between tin 1 countries, that means that there will be diminished credits-dollar credits— for the British to purchase your goods within this counirv.

"There remain* the question of British goods coming to ibis country ia balance the purchases of American goods made here. As you are aware. there is a high tariff that acts as a barrier against goods that would bo sent to this country. "We are. therefore, as two nations - each in its own interest vitally concerned with this international trade—faced by a sit nation profoundly modified from that to which we had grown accustomed,"

Other factors gravely affecting Great Britain's ability to establish credit's for the purchase of American goods mentioned by the Ambassador are the shrinkage of markets in Central Europe. Russia, and the East, which were formerly reached by British goods and the enormous volume of taxation exacted from the manufacturers and merchants of the: British Isles. He says; "I draw your attention to ther' points, because I see frequently in the press- suggestions that everything is coining right, quickly; trade is going to boom within a few weeks; that the whole world financial machine is soon going to start up and run smoothly and easily.

"It is not goitifr to be easy to {j;et back the old volume of tirade. That ultimately that volume of trade, great as it was before the war, will be enormously exceeded, 1 have no doubt; but I believe that there is a period ahead of us during which there has to be tin- very greatest skill and care shown, not only by those directly concerned with finance', trade and commerce, but those who are responsible for the governmental policy in the various countries, and by those who. like myself, are in part at least responsible for maintaining the close touch between one govorncent and anotiici. ' The key to world recovery in the financial and economic situation, according to Ambassador Geddes, is in the international co-operation of business men. Governments cannot always respond promptly to the business, economic, and financial needs of the nom. hut among business men there is a flexibility, a power of adjustment, which government's, because of their ponder ens nature, must always lack. No government of a great country can move rapidly with certainty that it is moving in the right direction. Therefore, the Ambassador appeals to American busim -■-- men to see 'that no unneees'sary hindrances are put in the way of international trade: to see that all reasonable assistance is sriveu to international trade.' fn concluding bis appeal to the credit men of Chicago. Sir Auckland Geddes said: "The best, the only way. i- I'n)'- the people- of the countries who can. to get n touch with one another, to coonerate with one another, and to weld the commercial interests of the nations more obviously into one. They are one now: they \vvix> one when the war broke out. and although many people had said that in words, ivw knew it in understanding. Now we now it. Now is your opportunity, if you will, to do much to help this sore stricken world hack on to it~ feet, back" to prosperity. But yen can do more: you can do work lor the .future, you can lay firm a.nd true nucl solid a foundation of mutual interests', respect, undei'fttandiiig between the nations 1 . uDoii which peaceworld peace- max safely rest for years to come."