BRITISH COMMERCE.

Otago Daily Times, Issue 20708, 4 May 1929, Page 12

BRITISH COMMERCE.

It was claimed by the Chancellor of the Exchequer in his recent Budget speech that the 'British community is Undoubtedly more powerful, more wealthy, and more securely founded than it was five years ago. ‘ The trade returns for 1928 offer considerable support to this claim. The apparent adverse balance of imports oyer exports ‘was £359,500,000. Blit the invisible, exports—including income from oversea investments, interest, and commission on oversea business and shipping retnrns—wore estimated at £508,000,000, and thus the real balance 'in favour of the nation on the year’s trading was £150,000,000 as compared with only £96,000,000 in 1927, and nothing at all in the fatal year of 1926. There have been encouraging signs riot only of recovery but also expansion in the chemical ’and artificial silk industries and in those concerned in the production of electrical machinery and appliances. A distinct impetus has been given also to the development of inter-imperial trade. A recent report of the Empire Marketing Board shows clearly the steady advance that has been made in this direction. In 1924 Great Britain imported from the rest of .the Empire goods to the value of £380,000,000; in 192 1 the value of these imports reached £420,000,000, In ' 1924 Britain exported to the rest of the Empire goods to the value of £334,000,000, and this amount had increased to £380,000,000 in 1927. We have mentioned the development of the chemical industries. Before the Great War Britain was largely dependent upon Germany for many descriptions of chemicals and of dyes. The reorganisation and rationalisation of the industry in Great Britain under Lord Melchett’s .direction has been uiarkcdly successful. The amalgamation of many competing firms and cooperation in distribution and in selling have resulted in a large expansion of business and in an increase in the number of persons engaged in these industries. The success of the application to them of modern methods of control lends ■ force to the contention that similar methods of organisation, would be strongly advantageous to other British industries. - It is pointed out in the latest number of the Round Table that the United States, Germany, and France have to a large exterit adopted the principles of the rationalisation of industries. One illustration of the operation of industrial concentration in the United States, which has become the busiest manufacturing country in the world, is somewhat illuminating. In 1926 the United States produced 4,259,627 motor vehicles as against Groat Britain’s 198,700. But over SO per cent, of the American total was produced by 10 concerns, while, no fewer than’ 88 British firms wore engaged* in manufacturing the small British total. The.success of American industries is duo in large measure to the manufacturers’ methods of organisation. The principles of rationalisation within the industry arid of .scientific management within the plant have been adopted. The writer of the article in the Round Table observes that both these principles are still usually looked upon in Great Britain as the catchwords of crazy busybodics because our grandfathers got on without them. Even the Spectator expresses the opinion that the plan of which Lord Melchctt is the principal advocate for -rationalising everything and everybody “ might easily .mean the sweeping away of existing methods which have amply stood (he test of time.” In this statement the spirit of conservatism, which survives so tenaciously ,in Great Britain, is powerfully exemplified. But the times are new times, international competition is more severe than it ever was in the past,- and British industry is confronted with conditions to which’ in all probability it can adjust itself only by the application of new methods.