BRITISH EXPORTS

Gisborne Herald, Volume LXXIII, Issue 21925, 21 January 1946, Page 3

BRITISH EXPORTS

IMPORTANT ROLE

PEACETIME ECONOMY

BANKERS’ OPINIONS

(9.30 a.m.)

LONDON. Jan. 20.

The significance of exports in the pattern of B>'iain’s post-war economy and the danger of traders being deluded by the sellers - market immediately in’ prospect, are emphasised in speeches by the chairmen of two of the “Big Seven’’ banks, says a special representative of the Australian Associated Press. They seem inclined to the h- lief that the world’s pent-up demand t ay be satisfied more rapidly and Europe's shattered industries restored sooner than is generally expected, but. that dependence on permanent recovery ot Britain's overseas trade on the country's ability to export at economic prices is not sufficiently realised.

The economist complains that nothing more is being done to secure capacity to sell abroad at competitive prices, though this is more important than ever because the Government is prepared to surrender all those special methods whereby exports can be stimulated.

Wage rates are increasing and costs rising through other causes, perhaps the most powerful cost-riser of all being the universal reluctance to do a hard day’s work.

The Economist, in an outspoken article, says: “The day when the Labour Minister, or best of all, the Labour Prime Minister first chooses to make the simple point that income workers must depend on the output, of the workers will be a red letter day for the national economy.” Both banking and industrial circles also acknowledge the need for largescale modernisation of industry. Even so, the bankers do not seem very confident of any early expansion in the demand for bank loans, whose recent improving trend is thought to be due rather to special transitional needs than to a reflection of the incipient business revival. Bankers’ Failure Criticised

Speeches by chairmen have disappointed the financial community through the failure to give a lead on major issues, such as the Washington Agreement and the Bretton Woods Agreement.

It is understood that industrial organisations, such as the Federation of British Industries, view with concern the proposed elimination of Imperial preference and hope for a strong line by the Dominions in the forthcoming conference which may lead to a modification of the policy accepted by the British delegation under pressure.

A survey of Britain’s dollar needs issued by a leading firm of brokers discloses that the service of the national debt per head of population of Britain has risen over twentyfold in the present century, from 8s 7a in 1900 to £9 10s lid to-day.

In terms of money the income ot holders of consuls has been halved since 1914 and, if an allowance is made for the rise in the cost of living, real income has been cut by more than threequarters. Gross national liabilities per head of population since the beginning ot the century have risen from £ls 10s to £486. largely due to the costs of two world wars.