ECONOMIC INTERDEPENDENCE

New Zealand Herald, Volume LXXV, Issue 22948, 28 January 1938, Page 8

ECONOMIC INTERDEPENDENCE

Affirming with emphasis that recovery in Britain was on firm foundations, Mr. Rupert Beckett, in his address to the annual meeting of the Westminster Bank, referred to conditions in the United States as a leading factor in the present situation. On both counts he is supported by a considerable weight of expert opinion. While some little time ago there were many suggestions that rearmament was the main cause of the upturn in the British economic outlook, it is now being said just as definitely that it is only one of many forces helping toward recovery. There is even greater unanimity in the conclusion that business recession in the United States has been the chief influence in slowing down the progress that was so marked at the beginning of hist year. American uncertainty in general, and the continued nervousness of the stock exchanges.there in particular, have naturally reduced that feeling of confidence in the outlook which is essential to first-class progress. But there have been more direct and* practical effects from what has been happening across the Atlantic. A fall in the prices of primary commodities, especially the raw materials of industry, has been one of the main factors affecting British trading. This has been traced directly to a slackening in the American demand. Lines such as the non-ferrous metals and rubber have been quoted as typical. Restrictions on the production or export of copper, tin and raw rubber had been relaxed or entirely lifted last year. Within the past few months they have been restored, or preparations for reimposing them have been made. The need has arisen almost wholly because of the American situation. It is easy to see, therefore, why recovery in the United States is regarded as essential. The economic interdependence of the great nations is well demonstrated by present circumstances.