THE PRESENT OUTLOOK

Evening Post, Volume CI, Issue 17, 20 January 1921, Page 7

THE PRESENT OUTLOOK

ADVICE TO BRITISH INDUSTRIES

TO CUI/TIVATE DOMINION

MARKETS,

<raiT«D FRSSS ASSOCIATION.— eOPIIUHT.)

(AUSTRALIAN - NEW ZIALAND CASLF. ASSOCIATION.)

(Received January 20, 10 a.m.)

LONDON', 19th JanuaTy.

Mr. F. G. Keileway, Parliamentary Secretary to the Department of Overseas Trade, has issued a statement, in which ho says: "In spite of the present depression there are grounds for restrained optimism in the trade outlook, chiefly because we are leaving the period of abnormal values, and finding real values that will lead to stability and progress in trade." He emphasised that many people who voice labour aspirations viewed the situation superficially in claiming : that the increased production preached tor since war has led to overproduction and consequent unemployment. The fact -was that production was still not equal to the world's demand; but many countries were unable to provide the goods or services necessary. Shrinking of employment and scarcity of profitable orders had succeeded the boom which followed the armistice. But the British credit system had weathered the worst of the storm,' and had strikingly demonstrated its solidity when a collapse seemed possible. The coal output had suddenly overtaken the demand, which was lessened by the slump, but it was improbable that the American invasion of the European markets would continue permanently. -The Termeulen international credits scheme was a step in the right direction, but it was not likely to be ready to operate in time to relieve the present depression. Mea.iT/hile he recommended the fullest lsb of the Department's export credits scheme. It was necessary to recognise that while the value of exports in 1920 showed a magnificent leap, the quantities showed big leeway compared with 1913. The goods exported from Britain in 1920 amounted to 54 per cent, of those shipped in 1913. He hoped the manufacturers, in spite of the passing, depression, would ; courageously _, preparo for an inereised overseas demand, probably in a fe v months, in particular irom the Dominions, whose markets and wealthy population? had enormous purchasing power, and offered Britons substantial advantages over their competitors. It was not right that the United States should provide three-quarters of the imports into Canada. British exporters were hampered in Australia and jSTev/ Zealand owing to the exchange deadlock. Whatever remedial measures the Governments tried, he feared that a substantial improvement was not likely before March, when wheat would exert a beneficial influence.