HOMELAND TRADE

Greymouth Evening Star, 11 July 1925, Page 5

HOMELAND TRADE

A PESSIMISTIC REPORT. (Australian and N.Z. Cable Association.) LONDON, July 10. A report on the position of British trade presented to the Council of the Federation of British Industries, took the economic staff of the Federation 18 months to compile. It reaches the conclusion that the present trade position of Britain has every appearance of being permanent. Before the war, it states, the prosperity of the British industry depended on a continuously expanding foreign trade. This meant a large scale overseas investment of British capital. Since the war, high taxation, and increased expenditure on social services (which stimulates the home trade but checks imports) together with the monetary policy of raising the value of the pound .sterling and the restriction of overseas investment, have all tended to check the export trade. Industry, says the report, has now to decide whether the post-war tendencies can be reversed. This means that cuts in the national expenditure to the extent of at least 15 to 20 per cent., and also in Imperial and local taxation are essential and the provision of more money for foreign investment is another necessity. Ihe country must deride- whether to await another readjustment through sheer pressure of economic necessity, unemployment and .suffering, or whether to take steps to stimulate home development. The report s-iys : “We cannot reasonably hope that our export trade will do nmre (han nay for oiir essential imports.” The report concludes by asking: — I “(Jan the export trade be. helped to divert portion of its output to new home markets, and to adapt portion of its productive capacity to new purposes? Can means be devised t.o assist them to pass, with a minimum of dislocation. through a difficult transition period ?”•

EARLY ELECTION PROSPECTS. LONDON, July 9. The “Daily Chronicle’s’.’ political correspondent foreshadows that the Conservative Party will be campaigning in 1926. the campaign being based on the winter unemployment, and be ins in favour of bounties to industry and of .safeguarding expedients.