SERIOUS POSITION.

Hawera Star, Volume XLVIII, 21 August 1924, Page 9

SERIOUS POSITION.

INDUSTRY IX UNITED STATES. The smnewhnt peculiar and serious position facing United St;ites manufacturers as a result of the adjustment of world affairs now taking place was referred to hv an Australian financier who arrived at Auckland from Vancouver by the Niagara (says an exchange). He said that the position in the United States was a good deal more serious than was generally appreciated outside that country, for the reason that industry was experiencing a species of slump. This was noticed in the Eastern States, where many of the factories were working only about one-third time, and unemployment was fairly general. He explained that before the war American industry took care of its heavy expenses, particularly overhead, by the adoption of mass production. thus greatly increasing output and export, but now that purchasing countries wore requiring less and less from the bnii.ed States, and orders were falling off. manufacturers were faced with the problem of adjusting their overhead expense', to tin; reduced output. Ihe position, moieover. was peculiar because by the adoption of mass production Americans had been able to send vast quantities of commodities abroad, receiving in return a very 'urge percentage of the world’s gold, which was now of no use to them. Again, by reason of (lie tariff walls that they nut up. they bad prevented' purchasing countries from making payments in kind, and this barred such commodities as New Zealand and Australian lnitt-er. Thus the demand for United States machinery and other manufactures was falling off. and so affecting industry that it must react on the prosperity and purchasing power of the American public.