BRITISH TRADE OUTLOOK

New Zealand Times, Volume XLVI, Issue 10687, 6 September 1920, Page 5

BRITISH TRADE OUTLOOK

“PERIOD OF DECLINING PRICES.’’ ’ In a review of trade conditions and prospects of the United Kingdom made about the middle of July, it is stated that within tho preceding two months there had been a relatively rapid change in the whole business position and outlook of the country. Whatever doubt may at first have been felt as to the permanence or otherwise of the relaxation of post-war boom conditions, there can now no longer. be any question that a , period of declining prices has been entered, upon, which is beginning to effect all industries in a greater or less degree. The outstanding fact appears to be in the present situation that the immediate urgent needs of the world have been satisfied. Where this .is not the case, as in Central Europe, Russia, and elsewhere, tho financial position precludes any effective .demand. Lacking credit, and therefore inadequately supplied with the raw material for_ manufacture, the exchange of commodities becomes im. practicable. The fall in . silver has severely checked Great Britain’s Asiatic trade, while Japan is still suffering from the financial crisis. Thus the fact has to bo faced that, from one cause or another, a large part of the world is not hungry for British goods. There is, at all events a. decided pause in buying, and competitive conditions are once more coming into force after a period of practical monopoly. In America the tendency suggests a much keener development of tho export trade than obtained prior to 1914,. and al * though at present competition from tho United States and elsewhere is not very pronounced, it has to be taken into account prospectively. It is in tho relation to home affairs, however, that the most serious and immediate problems of the trade position have to bo reckoned with; no greater financial or economic problems have ever confronted tho leaders of British industry than is the case to-day.