BRITAIN'S TRADE

New Zealand Herald, Volume LXXIV, Issue 22627, 15 January 1937, Page 8

BRITAIN'S TRADE

The improvement in Britain's trade throughout last year was continuous and substantial, and the fact that the export figures for December were the highest for that month since 1930 speaks for itself. While the disparity between the volume of imports and that of exports has widened, making a much higher adverse balance, this must be taken as an indication of increased spending power due to greater employment. The demands of the rearmament policy have helped to swell the imports, but not to the extent, that some casual surveys would suggest, for the great bulk of the extraordinary expenditure on munitions, aircraft and ships circulates within the country. Therehas been, however, a considerable importation of iron and steel to supplement home production. The common idea that the revival of industry in Britain, which in some directions has created boom conditions, is due solely to rearmament activities is disproved by the export figures. Their expansion has been in ordinary trade commodities, for the factories that are manufacturing munitions and weapons are serving Britain only. Actually the export of the last few months could have been greater but for the defence programme. The fulfilment of some orders from abroad, especially in heavy lines, has' been delayed. On the other hand, certain groups of manufacturers, notably the cotton spinners, are still suffering the effects of competition from lowwage countries, and the problem of depressed areas has not been solved. Unemployment in the aggregate, however, is less than it was a year ago by about a quarter of a million. All things considered, the Dominions, whose chief market is Britain, have reason for thankfulness for Britain's economic position.