AMERICAN CONDITIONS

Hawera Star, Volume XLVI, 5 January 1927, Page 6

AMERICAN CONDITIONS

A PERIOD OF DEPRESSION. OPPOSITE TREND IN BRITAIN. The United Suites of America i« passing duo ugh a period ol : depression, especially in the farming areas, according to passengers wiio recently arrived at Auckland. “Tilings are not booming in America as they were, while it is gratifying to note on the oilier hand tnat England has turned the corner,” said Air It. J. Coates, of Auck'and, who returned irom a world tour. “The depression is particularly noticeable in the farming districts oi the middle west, where land is still valued at a high level, the prices lor products having dropped. Due cannot nelp noticing- that almost anything from ciothes-haugere, up can be purchased on the hire-payment system, and m times of stringency the goods fail back on the hands of the manufacturers.”

England was now out of the throes of the ooa! strike and renewed activity was to be noticed on all sides. Air. Coates was particularly astounded at the volume of business being done in motor-car factories. One firm alone had 150.000 orders for 1927, while others were similarly besieged with orders. In many respects England was now changing from free trade to a protective policy. Under the McKenna Act. a duty of 33 1-3 per cent, was imposed on motor-cars and while this \va.s bad for America it was proving beneficial to British firms. America was badly handicapped on the Continent by protective duties, and this, no doubt, aggravated the depression. A duty of 62 per emit, was imposed on American cars in. Germany, 60 in Franco, and 55 in Italy.

“The large exporting business of the United States is falling away and she is now being forced back on her internal trade,” .Mr Coates said. “America lias enjoyed a progressive boom during the past ten years. Now, however, the European nations have turned their swords into ploughshares, that is. their plants- are now manufacturing peace products sheltered by enormous tariffs. For the first seven months of 1925 America’s exports exceeded, her imports by over £84,600.000, but for the same period of 1926 this excess shrank to 87 million dollars. Her shipbuilding inis fallen from 1.100,000 tons a year under war conditions to only 90.000 tons during the- past 12 months. There lias been tremendous over-pro-duction in motor-cars, cotton, and wheat.” Mr Coates said a large building strike was now in progress in San Francisco. The builders simple eon Id not pay the wages demanded bv the workmen. Commenting on the position, Mr Vernon Hoxie, an American manufacturing magnate, said it was true the United States was passing through a ’r’r;d of depression, but he thought was nothing serious. It was due- to over-expansion during the war period. While the depression was general, the farmers had been hit hardest, but were now beginning to recover in a measure.