Nelson Evening Mail THURSDAY, MARCH 31, 1932 BRITAIN’S ECONOMIC OUTLOOK

Nelson Evening Mail, Volume LXVI, 31 March 1932, Page 6

Nelson Evening Mail THURSDAY, MARCH 31, 1932 BRITAIN’S ECONOMIC OUTLOOK

FROM time to time various prophecies are made as to the probable duration of (he prevailing world-wide economic depression. Only the other day one, who might be supposed to know something of the laws governing economic prosperity, gave to New Zealanders the opinion that what is commonly called the slump will lift in Britain in about eighteen months or two years. He may he right, or lie may be wrong: there is really no means of checking such opinions. But there is a criterion which may be taken as a means of gauging the economic situation in Great Britain, and in every other industrial country, and that is the measure of unemployment, its increase or decrease. Recently the British Ministry of Labour furnished a Report for the guidance of the Royal Commission on Unem-

ployed Insurance and, commenting on this Report, the London “Times” recently said, in reference to the insured workers in Great Britain: The inquiry was carried as far as the end of 1930, and it therefore covered the earlier phases of the acute depression, which is still with us. More unemployment was not accompanied by any essential change in tile character •of the unemployment. It- is again shown, as earlier inquiries had made known, that “the standing army” of unemployed is small. In ibis Report its maximum size is confidently put at 100,000 men and 3,000 women. ... It is a slander on our industrial jrosition to represent us as burdened with a dead weight of something like 20 per cent, of unemployable people. The Report says—and its authority is unimpeachable—that the number of those who have had no unemployment in the seven years that ended in 1930 was at least thirty times as great as the number in ‘“the standing army” of the unemployed. That is to say that in those seven years there were over three million insured workpeople who were in constant employment. When it is remembered that the number of insured workers in Great Britain has averaged about twelve millions, at any time during the period under review, the force of “The Times” remarks will be seen to be very great. Furthermore, it is stated by that journal that between “the standing army” of unemployed and the three million workers in constant employment, there wero about million workers, men and women, “among whom employment and unemployment are intermittent,” and, moreover, that “half of this number is not a serious matter,” and that in reality the fact is that only in relation to ten per cent, of the 7 5 million workers, referred to, is the problem of unemployment very serious. It does not appear that any records were available of the number of unemployed, partially employed, and those fully employed, who are not members of unions, and are not participators in unemployment insurance, and of course, without knowledge of such, a true estimate cannot be formed of the unemployment in Great Britain. However, it is known that there lias been a considerable decrease during recent months of the number of unemployed unionists, and therefore it is reasonable to conclude that there has been a corresponding decrease iu unemployed workers who are not members of unions. Of course the object of the Royal Commission on Unemployed Insurance is to ascertain the extent to which unemployment insurance has been abused, and it appears that the Report, furnished to the Commission by the Labour Department, lias disclosed the fact that, dole or no dole, the conditions of unemployment have not been as bad as were represented. That there is still much unemployment in Great Britain is a fact; but there is no doubt that it is gradually decreasing. Indeed, during ilie present winter the conditions of the labour market have been better than was expected, for the creation of a protective tariff has had a distinct effect in increasing industry with a corresponding increase in employment; and it is to be expected that with the approach of summer conditions of industry and trade will improve still further. The fact is that British financiers and industrialists are regaining confidence. The new fiscal policy is proving a success. It is expected that the Ottawa Conference will result in increased trade with the Dominions, and therefore will result in increased industry and decreased unemployment. Such is the economic outlook in Great Britain, and it is acknowledged that the improvement dates from the time when the National Government took charge of the country’s affairs; that the General Election was the turningpoint in the nation’s fortunes; and tfiat the policy which, initiated the introduction of a fiscal tariff is proving a distinct success.