WORLD TRADE.

Manawatu Standard, Volume LIV, Issue 293, 8 November 1934, Page 2

WORLD TRADE.

NEED FOR READJUSTMENT. SIR ALAN ANDERSON’S VIEWS. The vital need for readjustment in the trade exchange of the world before any definite economic recovery could be brought about, was stressed by Sir Alan Anderson, president of the International Chamber of Commerce, and a director of the Bank of England, at Sydney recently. “World trade in the past few years,” said Sir Alan Anderson, “has been enormously reduced, and the. commercial associations of Great Britain attribute the reduction to the breakdown in the world’s exchange. We feel that the chief initiative in the world exchange rests with the great creditor nation, and that nation must buy more than it sells

He pointed out that the United States, by trying to combine incompatible policies, and by not realising that unless it bought more than it sold, which would allow its debtor to sell more, and thus be able to pay its debts —had been a prominent cause in the breakdown.

“The Ottawa Agreement,” Sir Alan stated, “showed the start of attempts to improve the commercial exchanges between the various parts of the British Empire, and Great Britain has been making the same attempt internationally by negotiating trade treaties with other countries, who rely on the British market, and who believe that world trade must be restored.

“Millions of people all over Europe are under-fed, and are potential customers; here in Australia, and elsewhere are thousands of tons of produce. The problem is to bring the two together. They are being kept apart by national fears. There must be a freer exchange of goods, and it is the aim of the British Government to got nations to trade fairly.”

It was very necessary, Sir Alan Anderson declared, that trade of the world at the present time should be controlled, to a far greater extent than it had ever been controlled before, until the world market had recovered. Rationalisation and adequate forecasting of markets to prevent gluts or scarcities was important. Arrangements would have to be made for Australian and other Empire produced products to be assumed markets by other nations. In his opinion, Great Britain and Australia had emerged from their difficulties to a greater extent than other countries by adopting similar salutary measures. The people had been told the truth, and the. necessary steps had been taken to correct the situation. But he expressed doubt whether the improvement would be maintained, unless international negotiations in the matter of commercial exchange proved effective.