SET FOR REVIVAL

Evening Post, Volume CXVIII, Issue 56, 4 September 1934, Page 10

SET FOR REVIVAL

INDUSTRY IN BRITAIN

NEW ZEALAND IN LONDON

A BUSINESS MAX'S NOTES

Mr. C. M. Bowden, of the firm of Bowden, Bass, and Cox, Wellington, returned to Xciv Zealand by the Aorangi yesterday. In the course of an interview with "The Post," Mr. Bowden said that he had been much impressed by the cheerful atmosplicro pervading London, where ho spent a largo part of his time. Speaking of business, Mr. Bowden said: "Almost without exception one heard of improved individual firms' trade figures, with more demand or inquiry from both Home and foreign, markets. There was an upward tendency of prices, and easy money conditions. The national trade figures for the half-year to June 30 showed increased exports of £15,000,000, of which woollen and worsted products accounted for £3,000,000, machinery £2,000,000, iron and steel £2,000,000, and metals and manufactures £1,000,000. EFFECT OF JAPANESE COMPETITION. "Conditions in Lancashire, however, were not very happy. This was duo mainly to Japanese competition; but the.iron and steel trades had shown steady increase in production over the past eightijn months; coal mining was more active; and in general there was a remarkable change for the better in the unemployment situation. All railway companies were showing increased earnings. "Official figures of the United States Department of Labour," Mr. Bowden continued, "showed commodity prices in June, 1934, to bo higher than at any time since April, 1931, a gain of 15 per cent, being recorded over June, 1933. Statistics from Geneva relating to the first quarter of 1934 showed industrial activity to bo greater _in most countries (increases up to as^high as 40 per cent, being shown) as "compared with the corresponding period of 11)33, whilst unemployment had decreased in all industrial countries other than France. "In England all conditions for trade revival are present, and renewal of confidence abroad would induce steady increase of trade," Mr. Bowden added. "Much interest is evinced in the United States policy of codes and loans and in finance, and results will be carefully watched. "It is earnestly to bo hoped that their bold and original experiments will assist towards genuine recovery and not merely 'mortgage the future to create an illusion of prosperity.' INVESTMENT IN BUILDINGS. "The building trade in England in the last two years or more has progressed rapidly. The increased activity has been steady since the war, but lately has advanced at a more rapid rate. The reason is that large firms and companies have been rebuilding their premises or building new promises in London and the chief provincial towns, and in this way investing money. To quote a typical case: Lyoiis's have built this year the Cumberland Hotel of 2000 rooms. It must have cost hundreds of thousands of pounds; but from the first day has been full of people. When I left London one could not get a room there. That, I say, is only an instance. All big business concerns, multiple store companies, banks, oil companies, and speculative companies, have been buying up old premises and rebuilding and letting out floors and rooms. I was told that London and tho chief provincial cities are rapidly changing because of these, one might say, speculative investments, but London more than a,ny of them. Whether tho investment is good yet will remain to be seen, but it at least (particularly in the case of the multiple concerns) serves to hide the profits that are being made. "In other respects building has been very active. Around London, for instance, there are many new suburbs being created —even twenty miles out —by the croups of houses that have gone up. Estates have been bought up and buildings erected, shops have been opened, and suburbs created. This is one result of speculation by financial companies on the one hand, and on the other by the operations of building societies which induce small wages men with limited savings to invest in a house of their own on the easy payment plan. These houses, therefore, are tenanted almost as soon as erected. But to sum up, building activity is very active in- Britain at present. It seems one of the chief means of investing the great sum of idle money available in England. "Mining is more prosperous than formerly, the coal output having increased by 8,000,000 tons in the first half of this year. This is largely the result of the foreign agreements arranged—in some cases at the expense of New Zealand's and other Empire produce. SELF-SUFFICIENCY POLICY. "This leads me to remark that it' Britain's policy of trade agreements within the Empire and with foreign countries is to be fully successful a balance must be struck between industrial and agricultural development in Great Britain. "The British Government is working towards a considerable measure of selfsufficiency in agricultural and pastoral production, by means of tariffs, subsidy, and quotas—and the extent to which that policy will be taken is a vital question for tho Dominions, especially for New Zealand. "Engineering and shipbuilding have been making headway in the United Kingdom, and particularly shipbuilding. In this respect New Zealand has contributed her share. I understand that 7iew vessels are ordered for the Shaw, Savill Co., the New Zealand Shipping Co., and tho Union Steam Ship Co., besides others for our New Zealand coastal trade." Shipping as an industry, he said, was improving, rising commodity prices having resulted in a greater voulme of trade; also there was better foreign demand for British coal, whilo ships had been engaged in bringing wheat from the Southern Hemisphere on account of tho drought in the northern half of the world. It was recorded that 2,500,000 tons of shipping were scrapped last year and fcliß British Government's subsidy proposals would give the industry further help. The lifting of thf ban on foreign borrowing on the London market in respect of applications under certain conditions might also give British industry a helping hand. INDUSTRIAL INVESTMENTS. "Stock Exchange movements when I was in England were a little erratic," said Mr. Bowden. "When I left there was a decided rise in industrials, showisg that, people were inclined to invest in British industries. Exports were on the upgrade and there was decided improvement in employment in most o£ the chief industries, especially motorcar.s and textiles, both cotton and wool, moro so the latter. I think tho fall in wool prices, by the way, was primarily due to German}' closing down on the'import of wool, and if it were a matter of Germany getting her supplies direct from New Zealand and not through Great Britain (I was informed)

the embargo probably would not have been imposed. However, I anticipate that German buyers will attend the forthcoming season's wool sales in Now Zealand.

"Although there is this air of prosperity in Britain and manufacturing is increasing and exports are on the upgrade, it cannot bo deemed that imports also have increased, particularly of manufactured goods. This may be taken as evidence of increased purchasing power, though it is not quite reassuring from the policy point of view, and does not mean sustained prosperity in the industrial areas. In short, it shows that Britain still is being beaten on her own protected market by foreign manufacturers. But there is a spirit of criticism of such things, and shortly the private interests responsible may be overwhelmed by public opinion and the greater understanding of tho people help Great Britain to get her own back. J A PEG-ALONG POLICY. "New Zealand, to my mind, should quietly peg along and continue to produce and expand, and, above all, bend every endeavour to place with Britain aii ever-increasing percentage of our import requirements. "Tho majority of the British people Hold tho Empire in regard, and New Zealand is popular. We can trust to enlightened Britain—not the politicallyminded or financially-interested minority—to give us a fair deal if we do our part. In time all will be well. There is not over-consumption of our chief products in Britain. It is interested parties who have raised that cry, but the facts and figures do not prove it. "The City welcomed the intimation that tho exchange rate would be main; tamed at 125 for some time to come. With this assurance it was anticipated that delayed orders for import to New Zealand would now be placed. Also, in conjunction with lower deposit rates in New Zealand this possibly will have the effect of calling back to London funds which have been allowed to accumulate in New Zealand in the hope of a fall in exchange. "The announcement of reduced duties on so many lines of manufactures exported from the United Kingdom created lively interest, and many inquiries were made for the detailed schedule. In view of the discussions of quotas on our primary produce and the granting of the subsidy to tho graziers of Britain, this tariff revision announcement was exceedingly well timed. "I should like to pay my tribute to the work of tho New Zealand oflice in London," said Mr. Bowden, in concluding his remarks. "From the popular and hard-working High Commissioner and every member of the staff, visitors from New Zealand may. bo sure of receiving courtesy and assistance in their business inquiries or social arrangoments. But, above that, valuable work for our primary producers is being done by the office in publicity and marketing. In this connection I feel sure tho fullest measure of co-operation with the High Commissioner on the part of the various New Zealand produce boards would be of permanent benefit to New Zealand." _^__^_