THE New Zealand Times (PUBLISHED DAILY). MONDAY, JANUARY 31, 1887.

New Zealand Times, Volume XLVIII, Issue 7997, 31 January 1887, Page 2

THE New Zealand Times (PUBLISHED DAILY).

MONDAY, JANUARY 31, 1887.

With which arc incorporated the Wellington Independent, established IS4S, and the Hew Zcalanaer.

A Royal Commission was appointed some considerable time ago to consider the depression of trade in the United Kingdom, and to suggest remedial measures. ■ The . report was drawn up by the late Lord Iddesleigh. and was fully discussed by his colleagues on the Commission,; • Information was sought for far and wide, A large amount of oral evidence was taken, and a series of questions were submitted to British Consuls fid .many countries. The result, as might have been expected, is a mass of information, much of which is interesting, but a simple conclusion which did not require the elaborate machinery of a Royal Commission to arrive at. The report states-that, in the first place, the evidence tendered on behalf of the shipping industry went far to corroborate that given by the traders and manufacturers. In the volume of trade carried in British vessels there appears to be no falling off, but the tonnage built in recent years being in excess of the requirements of the trade, profits have been reduced. There as also been general agreement that British shipping has as large a share as formerly in the carrying trade of the world, but that, bwing to the opening of the Suez Canal, the British entrepot trade has fallen off. In the reports of the Consuls in-Belgium, France, Russia, Spain, and the IJnited States, the position- of trade in those countries is represented as beingalmost identical in its leading -features with that existing in the United Kingdom, whilst, on the other band, in Austria and Germany a remarkable growth of industrial enterprise: appears to have neutralised the effects of falling prices and diminished profits. The Commissioners stale that there is a general agreement;, among ! the witnesses who gave oral evidence : —. (a) That the trade and industry of the country aro in a condition which may be fairly described as depressed; (b) that there is a diminution, and in some cases an absence of profit, with a corresponding diminution of employment for the labouring classes ; (c) that neither the volume of trade nor the amount of capital invested therein has materially fallen off, though the latter has in many cases depreciated in value; (d) that the depression dates from the year 1875, and that, with the exception of a short period of prosperity, which affected certain branches of trade in the years 18S0 to 1883, it has pressed with tolerable uniformity, and has affected the trade and industry of the country generally, .but more; especially s those "branches which are connected with agriculture The causes given by the witnesses for the depression are thus summaritei: (1) Over-production ; (2) the continuous fall of prices caused by the appreciation of the standard of value ; (3) the effect of foreign tariffs and the restrictivocomraercial policy of foreign countries limiting the markets; (I) foreign competition, which is beginning to ho felt both in‘British and neutral

markets; (5) increase of local taxation'and of burdens on industry generally; (G) cheaper rates of carriage enjoyed by foreign competitors ; (7) legislation affecting the employment of labour in industrial undertakings. The report points out that ' one remarkable feature of the present situation, distinguishing it from all previous periods of depression, is the length of time during which over-production has continued. The serious fall of prices is stated as another element of great importance in the situation. The report states that there can be little doubt that the demand for commodities has fallen off in quarters where formerly British goods found a certain and remunerative market. In the Home market there has been a serious loss iq purchasing power by the deficient or unremunerative character of the produce of the soil. Sir James Caird, one of the greatest authorities of the day on agricultural statistics, estimated the loss in ISBS to the classes connected with agriculture at £48,000,000, aud in several of the preceding years the loss must have been as great. The Commissioners fear that this depreciation must be regarded as permanent. The Home market has been affected by the increased competition of foreign manufactured goods, the importation of which seems to grow at a more rapid rate than formerly - and trade with foreign countries is , becoming less profitable as their markets are becoming less eftsy of access, owing to restrictive policy. The increased severity of competition is greatest in Germany, whoso traders are making their enterprise and perseverance felt in all quarters of the world. The following are the concluding words of the report We think that while on the one hand the information which wo have been able to collect will tend to dispel much of the misapprehension which appears to prevail on the subject of our Commercial position, and to encoutage a more hopeful view of the situation, it will also show that if our position is to be maintained it must be by the exercise of the same energy, perseverance, Bolt-restraint, and readiness of resource by which it was originally created.” This is no great result from so much trouble and expense. Everyone knows already that a great commercial position can only be maintained by energy, perseverance, self-restraint, and readiness of resource. There have been many periods of depression in England when things looked infinitely more hopeless than they do just now. Each of these has been followed by periods of prosperity, and that so it will be again few can doubt-. After all that has been thought and written and spoken on the subject, the shrewdest economists and mercantile men seem as little able to foretell what the state of trade is to be in a few months as the most learned meteorologist is to foretell the weather for a fortnight. It is some little consolation to know that sooner or later the qualities which the Commissioners commend are sure to succeed, though even the most energetic and persevering may suffer severely for a time.