THE MERCHANT SERVICE

Northern Advocate, 23 June 1920, Page 6

THE MERCHANT SERVICE

RELATION TO B'-'TTIMI TRADE

BETTER KNOWLEDGE NECESSARY

Interesting refeitencc to the import

anee of the merchant service in its relation to British overseas iraje was made by Mr. 11. W. Dalton, His Majesty's Trade Commissioner, at the luncheon wlicih was given in his honouil by the New Zealand Association of British Manufacturer* and Agents.

"As far as the Bnlish manufacturer is concerned, I think that we cannot hesitate to believe that he is paramount in his ability to manufacture," said Mr. Dalton. "Prior to the war he probably failed a little in his distributing organisation. For reasons which I have explained, from time to time, I do not think that prior to tho war such distributing organisation was nearly as necessary as it is to-day. I have the fooling, too, that the British manufacturer will realise that this organisation is necessary and will go out of this way to effect it. I do not wish to be misunderstood. It is not my idea at all to suggest that existing channels of trade should be sacrificed, but we need more Knowledge of our markets, more activity, and above all, more of the personal factor working directly foil the sale of British goods in particular. This is coming to be realised, and trading method which does not admit of these things will, I think, eventually be ruthlessly abandoned. "BACKBONE OF BL'ITISH TRADE."

"If we go back to the beginning of British overseas trade we shall find that it. was lirst carried out exclusively by the large merchant adventuring companies which wei/e in the habit of purchasing goods in England for indiscriminate trading in countries where their vessels called and purchasing products of these countries for resale in European countries. From these men chant adventuring concerns there has gradually grown up in the past years an immense merchant service in the United Kingdom. It may be at once admitted that the strength of our overseas trading was cheated by this merchanting service, bur it must be remembered, too, that in the early days Great Britain was the only industrial country in existence. As competition began to arise from countries which were gradually developing their industries, more strenuous efforts, to place goods on overseas markets, had to be made. It became impossible to rely exclusively on firms in London who, as intermediaries, wore concerned, primartily, in the sale of goods bought as cheaply as possible. The actual personal endeavours of the foreign competitors also made it necessary for British firms to adopt similar methods. I believe that the mcrchanting service to which I have neferred is still the backbone of British overseas trade, and I see no reason at all why it should not remain so. There can be no doul t that it renders valuable service in many ways, but I think that it must be recognised, also, that what is most lacking in British oveitieas trading organisation is the knowledge of overseas markets on the part of manufacturers themselves. If the merchant servico will admit that changed conditions have made thin knowledge necessary, and if they will show a disposition to-place their own knowledge freely at the disposal of manufacturers and believe that the extension of the trade of individual firms can also bring with it an extension of theitt own trade, then I believe that the merchant service will still continue to be the main channel of trade between Great Britain and overseas countries, but I feel, too, that if manufacturers find out, as they are beginning to find out, that they can extend their trade more rapidly by a more dined, personal touch with overseas markets, then I think that we shall find manufacturers doing their own overseas trade to a much larger degree.