LONDON’S LINEN VIEWS

Manawatu Standard, Volume LIII, Issue 23, 23 December 1932, Page 2

LONDON’S LINEN VIEWS

WHOLESALERS HOPEFUL. G.OOD CHANCE OF REVIVAL. In an atmosphere of optimism and good cheer the twelfth annual dinner of the City of London Wholesale Linen Trade Association was held iii the Holborn Restaurant, London, in November, Mr E. Geacli, chairman of the association, presiding. Ample evidence was forthcoming among this important section of the trade of the brighter new outlook tor the industry as a result of the Ottawa Conference Agreements, says a Home journal.). Croakers in general received a sharp knock from the hon. secretary, Mr J. H. liewett, whose rousing speech evoked much enthusiasm. Predicting that the linen trade stood a good chance of seeing a big revival of business in the near future, Mr Hewett put forward good reasons to support Ins optimistic outlook, and gave interesting quotations showing how pessimists of the past, who cried over Britain’s “coming downfall,” proved to be very false prophets. If any one was inclined to feel a touch of depression, said Mr Hewett, let him give them a little bit of history : .

In 1798 ; William Pitt said, “There is scarcely anything around us but ruin and despair.” In 1800, Wilberforce said: “I dare not worry. The future is too black.” In 1819, Lord Grey: “Everything is heading to a revolution.” In 1848, Lord Slraftsbury: “Nothing can save the British Empire from shipwreck.” In 1848, Disraeli: “In industry, commerce and agriculture there is no hope,” and ill 1851 the Great Duke of Wellington thanked God ho might be spared from seeing the consummation of ruin that was gathering around them everywhere 1

These great men were all wrong, declared Mr Hewett, amid loud applause. The nation came through its troubles all right on all these occasions, and the same would happen again. Let them keep their tails up. (Renewed applause.) The company was further cheered to hear an encouraging account of the improved conditions of the linen trade in Belfast from one of the chiefs of the industry. BETTER EXPORT BUSINESS. The chairman, having welcomed the guests, proposed the toast of the association. Responding, Mr J. H. Hewett, the hon. secretary, said their association was something they could be proud of. A year ago when he had the honour of presiding lie sounded a note of optimism. He was still opimistic as to their future welfare. “We have been through hard times, gentlemen, and we are still going through difficult days, but let up ‘keep our tails up,’ and we shall come through. To-day you will agree that our export trade is much better. Unfortunately, our home trade is bad, and we seem to be up against something that is difficult to fight. It will come right in time. The difficulty is we want a lead, and the only people who can give up that lead are the consumers. When the consumers buy the retailer will pass it on through the wholesale, and then,,,thank God, the manufacturers will come into their own. Employment will be on the increase, and money will circulate again.” (Hear, hear.) How could they get that lead ? he asked. They knew that the stocks in the retail stores throughout the country were down by millions, ten to twelve millions, lie believed the figures were. Statistics published in the Drapers’ Record showed how the retail trade had been holding off buying. It was no good their doing so if the consumer was not spending. There was plenty of money in the country ; the trouble was it was not circulating. MONEY FOR CIRCULATION.

There was, however, Mr Hewett declared, a ray of hope. On December 1 the Government would be returning £160,000,000 in respect of war loan not converted. Of that they could assume that 40 millions would go to foreign holders. A great proportion of the remaining £120,000,000 would be reinvested. He thought it doubtful if any large proportion would be reinvested in gilt-edged securities because of the low yield. If a big proportion went into industrials they could safely assume that at least 30 to 40 million would go to pay old accounts that were outstanding. That would come just before the big Christmas trade started and that forty million pounds added to the usual spending, held the promise that they were in for a good time. (Hear, hear.) “It is .up to the retailers,” said Mr Hewett, “to prepare for this potential increase of business. Then their orders would be passed on through the wholesale to the manufacturers, it that developed, as he was confident it would, they stood a good chance of seeing a big revival of business. “It will come, gentlemen,” he declared. “Keep your tails up 1” (Loud applause.) Mr P. G. Gould, a well-known manufacturers’ agent, proposed “The Visitors,” and praised the Ottawa agreements. , „ Mr V. F. Clarendon (Belfast), in reply, speaking for the trade in Belfast, said lie brought a message of good cheer. (Hear, hear.) They were now feeling very much happier than some months ago. In the early part of the year, as some of them were aware, a miniature boom followed the departure from the gold standard, but that fizzled out after about a month or so. Then up till July conditions were bad, but from that time trade became very much brighter. . Next year’s orders in Belfast were as good as in April last, and orders in hand now were 33 1-3 per cent, higher than in July. (Hear, hear.) The United States had begun to buy. Since Ottawa, Canada had come into the market and good reports had also come from Australia and New Zealand. (Applause.) . , ~ Mr Clarendon also referred to the very encouraging report Mr Lewis Grav had given of the benefits coming to the linen trade following the Ottawa Conference, and said he could confidently say the linen trado m Northern Ireland was progressive, and they were working very hard, as were also their Scots friends, to advance this prosperity. (Applause.)