Nelson Evening Mail THURSDAY, DECEMBER 21, 1933 SIGNS OF BRIGHTER TIMES

Nelson Evening Mail, Volume LXVI, 21 December 1933, Page 6

Nelson Evening Mail THURSDAY, DECEMBER 21, 1933 SIGNS OF BRIGHTER TIMES

EVERYTHING seems to point to a general recovery of Great Britain s economic health. As cabled from England on the 18th hist., the number of unemployed in Great Britain lias decreased 800,000 in twelve months and, to quote Sir John Simon, “at the end of the first half of the present financial year Rvilaiii’s financial position was better by 42 million pounds sterling Ilian at the corresponding date last year.” There •is not much doubt that this improvement in British trade is attributable to the country’s changed fiscal policy. That policy was partially sus. pended by the Tariff Truce, which was signed by 59 of the 66 countries whose delegates attended the World Economic Conference in London, last summer. The signatories of the truce agreed that they would nob make any new tariffs during the conference!, but they reserved the right to withdraw from the agreement alter 31st July. But Great Britain did n t withdraw till the 7tli of the present mouth. However, as the director of the federation of British Industries says,

“Now that her hands are free this country (Great Britain) will adopt a resolute policy io future trade negotiations with foreign countries.” Simultaneously it is reported tint the building and linen trades of Norll icrn Ireland have much improved, unemployment having diminished lay one-fifth during the present

year. Furthermore British trade with India and Canada has materially increased. the tendency being for the latter country to place in Britain orders which heretofore were placed in the United States. It was only yesterday that a prominent English business-man said, on his arrival at Auckland, “The bad trade cycle of the last five years (in Britain) is giving place to a cycle of prosperity, which in my opinion will continue ior some years.” At the same time it will be noticed that the prices realised at the Dunedin wool sales, “where the frantic bidding was reminiscent of old times,” are such as will bring joy to the sheepfarmer—22d, 17d, and 20£d per lb. being received for some classes of wool! The average price at the sale, it was said, was 14d per lb., or about £2O per bale, as against an anticipated average of £l7 per bale. So it will be seen that the better tone, of the British market is extending to New Zealand, and it is to be anticipated that before vety long other primary products of this country, such as honey, fruit, and meat, in addition to wool, will be returning our producers such prices as will give them an adequate reward for their industry. Usually the fluctuations of Britain’s economic condition take some six or nine months before their repercussion is felt in this country. Conditions began to show marked improvement in Britain in the first quarter of the year, and therefore llio time is due for a return of confidence in Now Zealand business circles. With that return, capital which has been frozen should be put to practical use, and there should be increased activity in many trades which at present are by no means as busy as they might be. There are signs of an increase in trade in many parts of the world, the League of Nations’ statistical bulletin showing that the “total exports during October were 16.3 per cent, above those of April,” and that the increase in imports was 8.3 per cent. It would therefore seem that New Zealand has good reason to anticipate a general improvement in her economic condition, since the improvement which is gradually showing itself- throughout the group of nations in close association with the League must inevitably show itself in this country. This is good news and, coming as it does, in Christmas Week, - it should contribute materially to the happiness of this festive season.