The Nelson Evening Mail. THURSDAY, OCTOBER. 13, 1932 BRITAIN'S ECONOMIC OUTLOOK

Nelson Evening Mail, Volume LXVI, 13 October 1932, Page 6

The Nelson Evening Mail. THURSDAY, OCTOBER. 13, 1932 BRITAIN'S ECONOMIC OUTLOOK

IN the first place, there seemed to be a tendency in the United States to belittle the work of the Ottawa Conference, but gradually it dawned upon the< Americans that the British nations, already united politically, intend to strengthen their economic relations appreciably. The latest American files indicate that the people of the United States appreciate tlie meaning of the agreements renched at Ottawa. “Current History” (New York) says: Tlie United States stood first among tlie foreign countries whoso _ trade would be diminished if the intra-imper-ial agreements asked for matcri alised. Any agreement between Canada and

Great Britain must be founded on the substitution of British for American coal, steel and machinery in the Canadian market, and of Canadian for American lumber, wheat and base metals in the British market. . .

Another New York journal sums up the work of tho Ottawa Conference thus: At this conference a definite advance towards closer economic association within the British Commonwealth was made in the signing of twelve separate treaties. In general, these treaties make Great Britain a free market for the natural products of the Dominions, and the Dominions a preferred market for British manufactures.

Various estimates have been made of the amount of trade which the United States will lose as a result of the Ottawa treaties, but such estimates are hardly reliable, since the effects of the treaties cannot be known until they have been operating for some considerable time. But this much is known: that America’s loss will mean gain to the British Commonwealth. It has been estimated that in past years Great Britain purchased annually more than 100 million pounds’ worth of goods from the Dominions collectively than they purchased from her. The Ottawa Conference should adjust that unequal balance of trade. It should do more: it should immeasurably increase intra-imperial trade. It has been estimated that in an average, normal year the countries of the Empire import goods to the value of 2,305 million pounds sterling, of which sum only 951 million pounds sterling was spent within tlie Empire. It is believed by competent authorities that the greater part of the adverse balance can be adjusted by means of Ottawa agreements. In an average, normal year Great Britain imports goods to the value of 1,320 million pounds sterling, less than one-third of which sum is spent within the Empire. Some of the foreign countries which, up to the present time, have found their principal market in Great Britain, have bought comparatively little from her. The Ottawa Conference has given such countries notice that in future they must purchase more largely from Great Britain, if they are to expect their sales to her to maintain the standard of past years. The exhibitions of British manufactures in Denmark and Sweden point in the direction indicated. The Argentine has re-' ceived a similar notice in respect of her unequal balance of trade with Great Britain. So that not only will the Ottawa agreements greatly increase the Dominions’ annual purchases in Great Britain, but they will automatically increase the annual pui’chase of British goods by foreign countries such as have been mentioned.' It is difficult to estimate what will be the increase of Britain’s export trade by reason of these adjustments, but evidently it should be considerable, and the result should be an appreciable increase of British exports. That is all to the good, so far as the Dominions are concerned, since the more Great Britain sells to the world in general, tlie larger are likely to he her pui’cbases in the Dominions. Indeed, the effect of the Ottawa agreements should be an increase in the total amount of trade between Great Britain and the Dominions, and that of course should materially improve the economic outlook of the Empire. It will thus be seen that Great Britain’s economic policy is the opposite of that which has characterised the United States in recent years. The Americans sought to “corner” the gold of the world, to use their system of mass production'for selling immense quantities'of goods to the world in general,, but to buy as little as possible from foreign countries. That economic system has failed lamentably. Great Britain, on the other hand,' seeks, to .buy and sell in as many of the world’s markets as possible. True, she exchanges trade-preferences with the Dominions, since they have been her best customers, but now she is seeking to adjust her commercial relations with foreign countries which, up to the present time, have sold freely in her open market while buying from her inappreciably. The Danes will continue to sell their butter to Great Britain, who will continue to-buy meat from the Argentines, but these nations will he expected to return the compliment by buying British' manufactures commensurably, otherwise Great Britain’s food-supplies will be drawn in increasing quantities from the Dominions. Such seem to he some of the repercussions of the Ottawa agreements, which will be followed today by Parliamentary action, and they appear to prove that the statesmen who recently met in the Canadian capital “builded better than they knew.”