BRITISH INDUSTRIES

Otago Daily Times, Issue 19529, 11 July 1925, Page 11

BRITISH INDUSTRIES

POST-WAR TENDENCIES. EXPORT TRADE CHECKED. REMEDIES SUGGESTED. Press Association—By Telegraph—Copyright. LONDON, July 9. (Received July 10, a.t 5.6 p.m.) A report on toe position of British trade winch waa presented to the council of the Federation of British Industries took the economic staff of the federation 18 months to complete. It reaches the conclusion that the present trade position of Britain has every appearance of being permanent. Before the war the prosperity of British industry, it states, depended on the continuously expanding foreign trade. This meant tlio investment of British capital overseas on a large scale. Since the war high taxation had increased the expenditure on social services, which stimulated homo trade, but checked exports. This, together with the monetary policy of raising the value of the pound sterling and the restriction of overseas investment, had all tended to check the export trade. Industry had now to decide whether the post-war tendencies could bo reversed. This meant that cuts in the national expenditure to the extent of at least 15 per cent, to 20 per cent, and in Imperial and local taxation were essential, and that the provision of more money for foreign investment was necessary. The country had to decide whether to await a readjustment through sheer pressure of economic necessity, unemployment, and suffering,' or whether to take steps to stimulate home development. It could not reasonably be hoped that the export trade would do more than pay for essential imports. The report concludes by asking: “Can the export trade be helped to divert a portion of its output to now Home markets and adapt a portion of the productive capacity to now purposes? Oan means bo devised* to assist industry to pass with a minimum of dislocation through the difficult transition period?”—A. and N.Z. Cable. i