BRITISH TRADE

King Country Chronicle, Volume XXXI, Issue 4566, 8 November 1937, Page 6

BRITISH TRADE

SOLID RECOVERY. STATEMENT BY CHANCELLOR. LIMITING FACTORS. London, October 9. “The recovery which has taken place in our trading and financial position is a solid fact, and I see no justification for supposing that the tide of prosperity has reached its climax and is about to turn.” This was the declaration made by Sir John Simon, Chancellor of the Exchequer, speaking at the Bankers’ and Merchants’ dinner at the Mansion House. The Chancellor was in optimistic mood and instanced the growing volume of employment—now more than 10 per cent, in excess of 1929—and advancing production as proof of the progress being made. “This year,” he said, “we have for the first time climbed up again higher than we were in 1929 on the other side of the valley. At last, as we draw breath and look back, we can see that we are higher up the rising slope than we were in 1929 before the drop occurred. “The volume of employment of the insured population is more than 10 per cent, in excess of 1929. Nor does this increase reflect merely that the numbers of the working population have increased and that more are at

work. Production as a whole has increased appreciably more than the increase in volume of employment. This progress is not only due to new inventions or new demands for luxuries. Older, staple, heavy industries —for example, iron and steel and engineering—are producing one-third more than in 1929. Shipping Well Employed. “If we are no longer the workshop of the world, yet our old-established industries do not (as some feared a few years ago) show any signs of decay. Even the textile industry, which has encountered special difficulties on account of world changes, is producing over 5 per cent, more than in 1929. It is particularly satisfactory to note that British shipping is much more fully employed than in 1929. In that year the volume of shipping laid up was nearly 400,000 tons. This figure increased during the depression to the appalling figure of over 2,000,000 tons, but it has now fallen to the negligible amount of 60,000 tons.

“The production of food, drink, and tobacco is up by nearly 20 per cent., as compared with 1929, and boots and shoes by nearly 25 per cent. The special significance of these figures is that they reflect improvement in the standard of living of the people as a whole.

“In international trade there has been a definite upswing during the past two years from the very low levels of the crisis period. But though the trend is favourable, much remains to be achieved in the revival of international trade. Our imports from the rest of the world have steadily increased, and our exports have also shown a considerable increase, but not to so great an extent. There is no doubt that the widespread impediments to trade practised by so many countries in the form of exchange controls and the like constitute a most serious hindrance to export trade. His Majesty’s Government is making strenuous efforts to secure the relaxation of measures which were adopted in the time of the world crisis.