THE New Zealand Herald AND DAILY SOUTHERN CROSS FRIDAY, DECEMBER 10, 1915. BRITISH TRADE ACTIVITY.

New Zealand Herald, Volume LII, Issue 16097, 10 December 1915, Page 6

THE New Zealand Herald AND DAILY SOUTHERN CROSS FRIDAY, DECEMBER 10, 1915. BRITISH TRADE ACTIVITY.

„s> From, the temporarily unsatisfactory state of affairs in the Balkans it is encouraging to turn to the steadily improving position of British trade, of ■which the November returns have now been circulated by the Board i of Trade. The marked commercial activity thus shown emphasises the notorious failure of the German " blockade." Losses have undoubtedly occurred through the criminal work of enemy submarines, but this does not appear to have interfered with the regular maintenance of all shipping time-tables. In fact British trade has been carried on with cheerful indifference to the bombastic threats made by Germany in February last, for March saw the greatest increase that has taken place since the war began, which increase has been maintained ever since. Prior to the war imports into the United Kingdom averaged about £60,000,000 per month, exports of British goods about £44,000,000 j per month, and re-exports of foreign and colonial goods about £9,000,000 per month. During the first few months of the war imports declined by quite 20 per cent., exports by over 40 per cent., and re-exports by nearly 40 per cent. By December the import trade had almost recovered, but in March, the very month when the British Isles were supposed to be blockaded, the value of imports rose, so much, and has ever since remained so high, as to be actually disconcerting to the Imperial Government. Mr. Asquith has made no secret of the grave necessity for economising policy that would be instantly reflected in reduced imports—while other ! financiers and statesmen supported; him by pointing out that the enormous increase in imports might seriously affect British finances. The most noticeable immediate effect was the dislocation of American exchange. Auckland importers have had a striking illustration of this during the present week, when they have been called upon to meet drafts for American goods now at the wharf at a rate of exchange involving an extra cost of about 7 per cent.

Considerable relief will, therefore, be felt after an examination of the Board of Trade returns for November. Imports into the United I Kingdom for the month amounted to £71,647,160 in value; this is a considerable advance on the £55,518,130 of last November, but the real comparison is with the £68,467,075 of November, 1913. The reaction is best seen from comparison with the month of June, 1915, when high water mark was reached with £76,117,797, the most valuable import trade ever recorded in a single month. The position must be regarded as still more satisfactory if the decline in the total value is due not so much to a falling off in quantity as to the lower prices now being paid for wheat and other foods. Exports of British goods for November were valued at £35,639,166, a substantial advance on the £24,601,619 of last year, but still far below the £44,756,183 of 1913. It is rather remarkable that after the temporary collapse of the export trade at the beginning of the war the most substantial increase took place in March, in spite of the vaunted ] German 'blockade." During that month the value reached £30,000,000 for the first time ; exporters have never since looked back. These figures are rather deceptive in giving an adequate idea of the activity now taking place in British manufacturing, for the Board of Trade returns do not include the huge shipments of provisions and munitions that are continually being sent to our armies in France, Flanders and elsewhere, although they do include actual sales to the Allies. If these war supplies were included the totals would tell a very different

tale, for they would then reflect the feverish energy with which the factories are working night and day.

So many markets have been lost owing to the war that it is most encouraging to see how well the British export trade has been maintained. Germany, Belgium, Austria and Turkey have disappeared from the list of purchasers of British goods, while the decline in the trade with Russia and Roumania is very considerable. The loss of trad© with these markets amounts in the aggregate to about £6,000,000 per month. It is creditable to the commercial reputation of the United Kingdom that after preference has been given in factories and on railways and steamers to all war-orders, a heavy export trade is still being conducted- Re-exports of imported goods are not of vital interest excepting as showing that Great Britain is now able to spare so much after providing for her own needs; their value for the month, £8,312,703, compares with £5,642,977 for last November, and is probably due to the modification of restrictions on the shipment of wool and woollen goods to America. Goods serve the same purpose as sovereigns in relieving tho pressure of the adverse exchange with New York. As the Navy controls the Atlantic the Imperial Government has gradually become reconciled to the idea of allowing more wool to go westward, for it can be stopped on the return voyage if any is destined for the enemy. As the export trade of France has dropped to less than half, while that of Russia has almost disappeared, it is of vital importance to the financial stability of the Allies that the export trade of Great Britain should be maintained at the highest possible level. Great efforts are now being made at Home to capture trade in the East in order to compensate for the loss of other markets. New Zealand does good commercial service by buying from the Mother Country in preference to all foreign sources, for this greatly assists Great Britain to bear the extraordinary financial burden of the war, a burden of which she carries not only her own share, but much that would otherwise bear crushingly on her Allies and Dominions,