WORLD TRADE

Evening Post, Volume CXXIII, Issue 56, 8 March 1937, Page 12

WORLD TRADE

A BANKER'S REVIEW

ACTIVITY IN BRITAIN

'From "The Post's" Representative.)

LONDON, February 3.

Progress in British industry last year derived its main stimulant from the internal market. In certain industries intense activity in the execution of home orders had prevented manufacturers from taking full advantage of opportunities of overseas trade. In many cases business had had to be turned away.

These points were mentioned by the Hon. Rupert E. Beckett, chairman of the Westminster Bank, in his annual address. It was earnestly to be hoped, he said, that that condition of affairs would not be allowed to result in the permanent loss of export markets. The time would inevitably come when the home market would no longer be able to absorb the entire production and overseas customers would again be needed.

"The recovery so far seen has been a fairly general experience throughout the world, proving again that, with countries linked- by innumerable ties, the prosperity and well-being of the one or the few spread and overflow with the same inevitability as did depression some years back," said Mr. Beckett. ECONOMIC NATIONALISM. "But with large and important countries still pledged, whether from choice or from sheer necessity, to live unto themselves and to exclude international trade as far as possible, in defiance of the'fact that their former greatness was built and' founded so largely upon that very trade, the rest of the world is denied a full measure of recovery. Enlightenment will assuredly come to those countries, to their own benefit and to that of the world at large. "Ominous clouds still overhang the political sphere, but if only these can be dispersed the, year promises still further trade progress for. this and other countries. "The first necessity appears f to me to be the continuance of the policy of cheap money. . "During the past.year there have been from time to time signs that the supply of credit is not quite so plentiful as in recent years, and'the mosl sensitive rates have been included: to harden under the influence of important though passing events. NEED FOR CHEAP MONEY. "Building and commercial construction formed the basis of our recovery, and these have been, more recently, supplemented by re-armament activity. A tightening-up of credit would not affect re-armament, but would undoubtedly diminish the amount of new building and commercial construction, apply a brake to business enterprise, and exert an adverse psychological effect all round. Industry and commerce still-need every,facility open to them' to continue their development, j

"The measure of stability already attained among the chief- currencies of the world is' the Result of economic cooperation. ..■:■■ "Is it too much to hope that political considerations will not be allowed to stand in the way of a wider collaboration, through which alone the universal desire for lasting peace and prosperity can be achieved?"