BRITISH INDUSTRY

Evening Star, Issue 20995, 8 January 1932, Page 1

BRITISH INDUSTRY

AN ATMOSPHERE OF HOPE One consequence of the .General Election has been to substitute optimism for pessimism in the business world, though evidence of trade revival is still hard to discover (writes the ‘ Argus' London correspondent, November 19) There has been some' decline in unemployment, but the amount is obscured by several thousand recipients of the dole, who have been struck off the register under tlie anomalies regulations* Many manufacturers are overhauling their plant and preparing to install new machinery, and others are procuring factory sites, not only in the South of England, but also in the midlands and north. There has been a revival in the lace and-hosiery trades of Nottingham, which has put several thousand women into employment and is adding large sums to the wages bill of the district. Machines which have been working six hours a day for months are now working eighteen hours a day., “ ome °f the trade is due to the sudden onrush of wintry weather, but the greater part may justly be described as trade _ revival, which is ■ traceable to! optimism among manufacturers. These 1 have kept their stocks down to a very low point during the last year or two,'', so that any revival of demand has A quick reaction. Even more obvious and important is the revival in the wool industry of Yorkshire. In the last six weeks 36,000 workers have been employed in the West Riding textile trade, the revival being chiefly concerned with lightweight fancy dress goods for women.) So far the better prospects have not t extended to Scotland, 'where the need* for a'revival of trade is far more urg-’ ent than in the south. It is estimated that in Glasgow alone there are 500.000] workers in receipt of State or muriici-: pal assistance, representing about half; of the working population. The Glasgow area, with its shipbuilding and its heavy manufactures, wants' much more than _ a small exchange advantage to get its industries going again. For this there inust be a revival of foreign; trade., The best hopes of this are; based upon recent rises in values ofi commodities. _ Wheat, copper, tin,' cotton, and jute have all risen sharply j since Britain went off', the gold stand-J ard, arid many exporters Jfope that | these rises alone will increase the demand for British exports. The extent and significance of foreign' dumping is as difficult to estimate as i the improvement in trade. During the I financial crisis in Germany in the sum-1 mer British buyers were urged to increase, their purchases of German goods,- 1 and special discounts were given to encourage, forward trade in anticipation of the Christmas market. These fancy, goods have recently been arriving in considerable quantities; but Ihcy-eimiot lightly bo described as “ dumped goods." On the other hand, many Continental shippers have been troubled by the reports of coming changes in the' British tariff,, and they have attempted to forestall British legislation. Large quantities of goods have been sent to London and other British markets “ for, account of the shippers ’’ —evidence in' itself of “ dumping,’’ especially as some of the goods are ridiculously cheap*. Foreign-made overcoats and suits have been selling wholesale ip the Midlands for 9s 6d, the retail price being 12s 6d; and trousers priced at 2s 7d and 3s 3d a pair have been on offer tb the whole- J sale clothing trade in competition witlii British goods. Imports at Hull in a re-1 cent week were ten times the volume of the same week in 1930, When Britain went off gold British wares were at once worth 25 per cent, more'to Overseas customers. For £1 they obtained goods which had been worth £1 ss. But France, to take the chief example, had i no intention that this inducement to ' “ buy British ” should continue, and the Government has already issued a decree applying a surtax of 15 per cent, to British goods, goods from Australia being included in the surtax. No recent action hasdone more, to persuade Britain that her system of encouraging free imports is being grossly abused. An equally irritating example of trading selfishness in Franco is furnished by, the experience of the British fishing industry. Last week the French Government issued a decree restricting the meagre proportion of British fish which may be exported to France. This quota restriction follows upon a drastic in- ] crease in the tariff, and it is expected,' to destroy the French trade in British [ fish. Similar action was recently taken by Franco in connection with British" coal. At present British traders feel that all the “ give ” is on their side and all the “taka" on the side of their trading rivals.