BRITISH TRADE

Evening Post, Volume CV, Issue 108, 8 May 1923, Page 10

BRITISH TRADE

EFFECT OF WORLD CONDITIONS

PROSPECTS OF IMPROVEMENT

TRADE COMMISSIONER'S VIEWS.

The speeches delivered at the complimentary luncheon tendered by the New Zealand Association of British Manufacturers and Agents to His Majesty's Trade Commissioner (Mr. V. Elmslie) were continued after "The Post" went to press yesterday.

Mr. Elmslie pointed out that trade and commerce were so interlocked that it was quite impossible to get any adequate idea of trade of one country without watching the trade throughout the world. In regard to Great Britain and New Zealand, he stated that Britain, took 80 per cent, of New Zealand's exports and New Zealand a- large proportion of British goods. Trade had improved up to 75 per cent, of the pre-war volume. In some trades the volume was up to pre.war level, but some other trades showed little real progress. There were signs of increasing activity and a distinct movement for the better. Inquiries were now coming in ve_ry freely. Mr. Elmslie referred at this stage to disturbing factors, and the economic relations in foreign countries. If trade .throughout the world was good the output waa larger and steadier, and the cost of production became less and unemployment decreased. Larger national income made for larger revenue, and lower taxation resulted, with a lowering of the cost of production. The burden of fixed taxation on steel before the wai-, for instance, amounted to 2s 6d a ton. It was now £1 Is. This was quite apart from income tax, which, was a tax on profits. Stability of conditions throughout the world meant greater purchasing power, which in turn resulted in belter prices. That was a very important factor at the present time. The producing countries had recovered from the war fiooner than the manufacturing countries. That had an important bearing upon unemployment in the United Kingdom. Prior to the war Western Europe was a larger buyer from India. In 1921, beI fore the value of the mark declined, Germany began to import Indian products, and that caused a direct improvement in trade in India. When the German exchange broke, Germany ceased buying from India, and Indian trade fell. _ Referring to the steel, trade, he said it was plain that the developments in the Ruhr had disorganised transport, so interfering with the supplies of coke and coal for industrial purposes. Continental output had thus been heavily affected, and the total output of pigiron and eteel had "been largely reduced. The immediate effect had been beneficial to England,' and British industry at present was unable to cope with the demand. The present position, therefore, was satisfactory, but there was a. danger of a slump following, with disturbing results. The position in the Buhr had affected New Zealand so far as the purchase of •wool was concerned. Owing to the transport difficulty, Germany had for the moment ceased buying from the Dominion. It was a great mistake to think^ that because New Zealand had no direct trade with certain countries she was not affected by conditions prevailing ,in those countries. Speaking of the future, he said that if conditions remained as they were we might look forward with confidence to a period of active and increasing trade, and generally brighter prospects. In conclusion, he spoke of his duties as Trade Commissioner, so far as the spirit of sentiment between the colonies and the Mother Country was concerned. Mr. F. Meadowcroft, vice-chairman .of the British Manufacturers and Agents' Association, in proposing the toast of "Parliament," gave a patriotic address, pleading for support to British manufacturers, which indirectly would be a help to the Empire and a contribution to its strength. In doing business with British manufacturers, who were bearing the greatest proportion of the burden entailed by the war, New Zealand should be prepared to make some sacrifices. Preference was already of help, but it might be extended to the mutual advanj tage of Great Britain and New Zealand. New Zealand should cultivate a patriotic sentiment in trade. He hoped that they would impress their colleagues in the Cabinet —ho referred to their, guests, the Ministers—with the jdeals and aspirations of business men in relation to the question of Imperial trade for the further development, advancement, and progress of this and other parts of the British Empire. The Hon. J. G. Coates (Minister for Public Works) congratulated the chairman and vice-chairman upon their very practical summing up of conditions existing to-day. The new Trade Commissioner had shown a very wide knowledge of economic matters in other partß of the world, and he had no doubt he would be a very able representative of the Department of Overseas Trade in the Dominion. He subscribed' to the view that New Zealand should be represented at the coming Imperial Conference, and hoped Parliament would be seized vith the broadness of the question, and would sink party feeling in giving due consideration to New Zealand's representation. He hoped Mr. Massey wculd be able to attend. Dealing with the attitude of the Government in iogard to points raised by the chairman, he said that the principle had beer» laid dewn of giving 20 per cent, preference to British manufactures over' foreign maEufactures, and 10 per cent, preference to local manufactures. Every case was considered on its merits. On occasions the Government had disregarded tariffs altogether, and had purchased Britishmade materials rather than foreign goods. It had to exercise care in the extent to which It carried preference. In purchasing electric lighting equipment, for instance, the Government had to consider the ultimate cost of electricity. It was therefore important to see that equipment was got at a reasonable rate. It was anxious --o assist the Mother Country, provided always that it could create competition. All that was asked was common-sense in the tenders quoted by British manufacturers. In the past year the Government had purchased over a million pounds' worth of New Zealand manufactures, for the local manufacturer was progressing rapidly. The Government subscribed entirely to Imperial preference, a,d would give every opportunity that pss required to manufacturers of ouv own kith and kin. He was sure the ptop.ie of New Zealand would doihe snme, and ha hoped local authorities, in crdsrin.i; electrical and other supplies; would realise that they could assist British tiade by purchasing machinery and materials of British make. The toast of tha retiring Commissioner of Customs (Mr. W. B. Montgomery) was proposed by the chairman (Mr. G, H. Scott), who spoke eulogistically of the good work of that officer in tho drawing up of the .tariff schedule, Mr. Downie Stewart, who supported the chairman, said that any success th» Government had achieved in framing the tariffs was in large measure duo to Mj\ Montgomery, and it wsb a matter for regret that he was : now about to retire. Mr. Montgomery, in returning thanke.

oxplained that his retirement was practically compulsory on account of illhealth. The toast of the chairman was pro-, posed by Mr. J. Myers, president of the Chamber of Commerce. In responding, the chairman expressed gratification at the large attendance on the occasion of the welcome to Mr, Elmslie.