LIKENED TO WHITE MICE IN SPINNING CAGE

Greymouth Evening Star, 22 September 1949, Page 4

LIKENED TO WHITE MICE IN SPINNING CAGE

WELLINGTON, This Day (P.A.).— “It seems to me that one of the greatest difficulties the British manufacturers are up against is that they are becoming increasingly like _ white mice in a revolving cage.” This comment on devaluation was made by the president of the United Kingdom Manufacturers and New Zealand Representatives’ Association, Mr# John Raine, addressling today’s annual meeting of the association. Mr Raine said the momentum of the revolution of the spinning cage was being increased to a mad pace with the danger of the white mice being worn out and getting nowhere. Another point, said Mr Raine, was that, with the immediate devaluation of the pound, British exports, unless and until the volume was increased, would produce 30 per cent, less in dollar earnings, thereby widening the gap instead of closing it. “Furthermore, if, as a result of the lower costs, at which British goods will now land in the United States, increased o/ders come to hand for British goods, the United Kingdom manufacturer aftei' he has increased his exports by approximately 33 1-3 per cent, in volume will sftill only be earning the same dollars (in total) that he was earning last week and he is still no nearer closing the gap until he is in position to increase exports beyond that. “It is to be hoped that in the efforts to reach that goal the sterling markets do not have to suffer in consequence,” ataid Mr Raine.