BRITISH TRADE GAINS

New Zealand Herald, Volume LXXII, Issue 22059, 15 March 1935, Page 8

BRITISH TRADE GAINS

Continuing improvement in British trade, as recorded in the official figures for February, is reported to be receiving prominence in the London newspapers. The trend is noted as a sign of returning confidence, the element which heretofore has been lacking in sufficient degree to set easy and plentiful money to work and take up the alack in industry. Lasi year Britain was able to show the best twelve months' trading since 1931. Especially gratifying was the increase in exports of £31.000,000, as there had been some slackening of the forward momentum in the closing months of the year. Some fears were expressed lest a real check was manifesting itself. The buoyant opening of the current year should have dispelled those fears. In January the balance of trade moved in Britain's favour by the large amount of £7,500,000, while the gain last month was £5,000,000, an improvement in two months of £12,500,000. Along with these returns cornea a decrease of 39,910 in unemployment in February, a month toward the end of winter, when business is usually at a low ebb. One feature of the trade returns of special interest to New Zealand is the sustained growth of exports. In the first two months of the year the gain has been about £9,000,000 over the corresponding period of 1934. It was the steady decline of exports that more than anything else caused Britain to reconsider her economic policy. While her sales abroad continued to shrink, imports remained at a high level and the balance of trade moved against her to a critical degree. To restore equilibrium she was forced to take measures to stimulate exports and reduce imports. If she could not sell as much abroad, Britain concluded she must restrict her buying and set about producing more for herself. One consequence was the development of British agriculture, with tariff and quota accompaniments. The factor which would chiefly influence Britain in reconsidering her agricultural policy—with which she does not seem to be 6ver-enamoured —would be the recovery in substantial measure of her export markets. If she can sell, she can afford to buy. The current trend of British trade is therefore a favourable portent from New Zealand's point of view.