BRITAIN’S ECONOMIC OUTLOOK.

Otago Daily Times, Issue 19691, 19 January 1926, Page 8

BRITAIN’S ECONOMIC OUTLOOK.

While Lord Allenby’s name is more distinguished in the military and administrative field than in the realm of economics, his utterances in Sydney respecting the general ecomomic outlook in Great Britain merit attention. Xv b a rele&pely cheerful account which

he has given concerning the conditions at Home. It is his opinion that there is positively no ground for pessimism concerning Great Britain’s future. He points to a steadily improving industrial position and a gradual reduction of unemployment. He offers, moreover, a pertinent reflection respecting the terrific financial burden—an outcome of the war—which Britain is conscientiously bearing. On the subject of Britain’s recuperative power—evidence concerning which is always welcome — Lord Alleuby speaks in general terms, it is true, but not on that account unimpressively, In view of the fact that there is undoubtedly a great reserve of economic stength in the Old Country, exhibited in such directions as the standard of living of the bulk of the people and the readiness with which huge contributions to the revenue are being made by the taxpayers, it seems only reasonable to judge that Lord Allenby has substantial grounds for his confidence in the future, and that he is justified in discounting pessimistic utterances concerning the economic and industrial conditions in the country. It has to be recognised that the efficiency of British industry is an important factor in the situation. In this direction it has been pointed out there is room for a mote progressive spirit. Mr Baldwin has outlined proposals, it is to be noted, on the part of the Government for the establishment of a Board that shall co-ordinate the existing schemes for the supply of electrical power, and expand them with a view to bringing about an appreciable increase in the volume of power available in the United Kingdom,, which is at present very low compared with that used in either the United States oi Canada. The efficiency of modern industry is largely reflected in terms of power. Some years have elapsed since the Coal Conservation Committee reported on the desirability of utilising electricity and on the need for centralising its supply in selected regions. But the industries of Great Britain, unlike those of her rivals, still cling to steam. It was pointed out recently by the Manchester v Guardian that the proportion of electric power to the total power employed in the United Kingdom was even smaller in 1924 than in 1910, whereas in the United States the increase in Electric power was practically as great as the increase in total power. And by way of commentary we read: “Experience both in this country and elsewhere shows that, if they started from the same line, electricity would nearly always win in the race against steam. But older firms already using steam are unable or unwilling to incur the heavy initial expenditure involved in th© change from one to the other. This has especially been the case since the war, for the cost of reproduction has been enormously increased, and the gradual fall in the price-level since 1920 has encouraged people to postpone all avoidable capital expenditure until prices have reached rock-bottom. Apart from that fact, older firms have been content to see their industries decay, and have endeavoured merely to save as ranch as possible by working the older plants until they become obsolete.” Lord Allenby has referred to the manner in which the British people are displaying typical characteristics in making sacrifices and in enduring privations in order to pay their war debts. There should be room for confidence that at the pinch they will not fail to display, in the industrial and economic field, the qualities of initiative and resource which carried them so far in the past.