BRITISH TRADE

Manawatu Standard, Volume LII, Issue 4, 4 December 1931, Page 7

BRITISH TRADE

POLICY OF FREE IMPORTS. DANGER TO ECONOMIC STABILITY. GOVERNMENT’S DECISION, (United Press Association—By Electric Telegraph.—Copyright.) (British Official Wireless.) Received December 4, 11.0 a.m.

RUGBY, Dec. 3

Tlie Government assurance given in tho House of Commons that no fiscal engagements of a binding character would be entered into with foreign countries likely to prejudice the Abnormal Importations Act‘or any future arrangements with the rest of the Empire is commented on to-day.

It is pointed out that Britain’s exports have suffered considerably from the high tariff walls which in part were responsible for forcing Britain off the gold standard and the present reconsideration of the fiscal policy. The Times says: “The greatest satisfaction will be felt in this country at any prospect of protectionist countries oven contemplating the possibility of a more liberal policy and being disposed to take into some account the interests of other countries, including Britain, in drawing up Customs schedules. That change will come in time, for it is plainly impossible for the world to go ■on much longer as at present, with every country ondeavouring to export as much, and import as little, as it can, an irrational system which so far has been able to maintain itself largely by the existence of an open British market.

“Britain is now forced by tho danger to her own economic stability to close this safety valve and abandon the policy of freo imports. By so doing she is creating a new situation which sooner or later will compel even the most reluctant to realise the necessity for a more liberal attitude ail round.” The Times emphasises that Britain must go to the Imperial Economic Conference at Ottawa with her hands as free as possible from commitments outsido tho Empire. The confident tone in tho Press and other comment on the fall in the exchange value of the pound this week found an echo to-day in the House of Commons, when Mr Neville Chamberlain said ho understood that the weakness of the exchange was primarily due to factors abroad not under our control coinciding with heavy seasonal and other demands for imports. Mr Chamberlain added: ‘‘l see no reason to view the recent movements with apprehension.”

Observing the pound’s recovery, the Daily Telegraph’s city editor points out that huge balances are awaiting repatriation when the pound becomes temptingly cheap. There is no occasion for concern about the sterling, given fundamentally sound conditions, for which the Government is striving. The Financial News says, the marked recovery of the sterling is attributed to tho cessation of selling from Dutch quarters, but it is understood that one. of the “big five” British banks was a strong buyer of sterling and is believed to have been operating on its own. account. The Financial News considers that the political factor, seasonal influences, and tho withdrawal of foreign balances aro all likely to continue to work against the sterling for at least another month.

Mr Neville Chamberlain speaking at a London conference in connection with the National Savings movement, gave a remarkable testimony to the public’s unshakeable confidence in British credit. He said that throughout the recent crisis no more than one-tenth of one per cent, of the people’s savings with the Government, which amounted to the astounding figure of £1,100,000,000, was withdrawn.

TO OVERCOME PROBLEMS

COLLABORATE WITH DOMINIONS.

LONDON, Dec. 3.

“The two most important men in Britain to-day after tho King are Mr R. B. Bennett, Prime Minister of Canada, and Mr S. M. Bruce, of Australia,” said Lord Stonehaven, when speaking at a Conservative dinner in liis honour. Lord Stonehaven added : “I am sure Mr Bruce will be Prime Minister again. We are in a deuce of a hole, but wo shall get out if we collaborate with the Dominions.” A British Official Wireless message states: Mr Stanley Bruce, in a speech at the Royal Empire Society, said that statesmen of the Empire were presented with the greatest opportunity for stimulating greater inter-Imperial and economic co-operation.