HOME MARKET

Evening Post, Volume CXVIII, Issue 34, 9 August 1934, Page 13

HOME MARKET

IMPROVED BY TARIFF

BRITAIN'S POSITION

Evidence of the substantial benefits which havo accrued to British, trade as a result of the changes in her commer-' cial policy since 1930 is provided in a memorandum prepared by the Federation of British industries, says the "Daily Telegraph." 'The survey has been submitted to the Government. The memorandum first deals with the figures for United Kingdom production. Taking 1930, the pre-tariff year, as a base of 100, a general index of these figures shows at fall to 92 in 1931 and a I further decline to 91 in 1932. In 1933, thero was a rise to 95, while in the first quarter of 1934 thero has been a jump to 106. The effect of the tariffs w clearly shown in the figures of retained imports of manufactured goods. These show (again taking 1930 as 100) the following movements:— 1931. 1932. 1933. 1934 (Ist qr.) 101.7 05.2 67.1 74.4 A similar comparison of raw material imports shows a fall in 1931, followed by a progressive advance to 122.0 in the first quarter of this year, which • indicates increased industrial activity. Dealing with exports of manufactured goods, the index shows a steady rise from 74.2 in 1931 to 82.0 in the first quarter of 1934.

The effect of the Ottawa Agreements is indicated in figures showing tho geographical distribution of British trade since 1930. Imports from British countries have risen from 28.73 per cent, in 1931 to 39.21 in January-May, 1934, while those from foreign countries have fallen from 71.27 to 60.70. Exports, however, show little variation, due mainly to reduced exports to the Irish Free State.

Despite tho fact tliat the British trade agreements negotiated in 1932 did not become effective until June in the case of Denmark and Iceland, until July in the case of Norway and Sweden, and until November in the case of Finland and Argentina, the proportion of our trado with those countries expanded substantially in 1933 over tho previous two years. •

The conclusions drawn by the federation from the figures aj-e:—

The operation of tho British tariff lias greatly improved tho position in the homo market. In tho ovent, however, of a substantial depreciation of foreign currencies as against the pound, the effect of the tariff would bo seriously impaired.

Tho introduction of a tariff has not had adverse effects upon the export trado. On the contrary, Britain lias regained the position of the chief exporting country of the world.

If the policy of trado agreements with the Empire and with foreign countries is to be pursued with success, real coordination between the industrial policy and the agricultural policy of this country is vital.

Finally, it is considered that the outlines of the present British tariff system must be filled in, and the policy oi: concluding trado agreements with overseas countries extended to -cover as wide a licld as possible.