TRADE FOR GERMANY

Evening Post, Volume CXXIII, Issue 18, 22 January 1937, Page 8

TRADE FOR GERMANY

A COMPANY'S OBJECT

ACCESS TO RAW MATERIALS

(From "The Post's" Representative.) LONDON, December 30.

A company known as the Compensation Brokers, Limited, has been formed in England. One of its main objects is to enable Germany to obtain raw materials. Generally speaking, this concern proposes to facilitate commerce between the British Dominions and colonies and those European countries whose normal trade is now curtailed by reason of exchange restriction. In effect, those countries which lack foreign money with which to import goods will be able to barter directly goods for goods. While the objects, however, are wide, their main application, it is understood, is, for the present, to bring the farmers and producers of Australia, New Zealand, and Africa into contact with the manufacturers of Germany, where distress is now felt through the lack of butter, edible fats, wool, and other commodities. This effort to promote trade is sponsored by private banks in the City of London with Continental connections, and on the board of the new company such names as Lord Glenconner, oj. Harnbros Bank, Mr. Peter Tiarks, of Schroders, and Mr. Julian Piggott. Mi. Piggott, who is the manager of the British Steel Export Association, has. it is understood, been offeied the post | of managing director.

THE WIDER ASPECT

Looked at from a wider aspect, there is more behind the new venture than a mere desire to assist Germany in her need Merchants in England are finding difficulty in supplying orders from the Dominions for manufactured goods owing to English factories being full with work. The trade returns recently have shown that English firms have had to go abroad, particularly to Germany, for machine tools, etc. Merchants desirous of. preserving their trade connections will be able through Compensation Brokers, Ltd., to pass their overseas orders through to Germany, and the business will be carried against the import to Germany of commodities. It is realised that in some instances, competition will exist between British and German manufactured goods, but the company proposes to work in close contact with British industry in order to ensure that such additional German exports will not divert trade from the United Kingdom. It is, in fact, expected that the company will be able to assist in the furtherance of export agreements between industries in the United Kingdom and Germany. Emphasis is laid on the intention to avoid disturbing existing channels of trade whether of a normal commercial character or of a barter description, where they are working satisfactorily. And. finally, there is this further consideration: So far as nations are relieved from economic hardship . and distress, so far has the cause of ■ peace been assisted. This, it should be [ stated, is not advanced by the pro- . moters, but the fact nevertheless re-' t mains.