CHAMBERS OF COMMERCE

Otago Daily Times, Issue 21979, 14 June 1933, Page 11

CHAMBERS OF COMMERCE

BRITISH ASSOCIATION PRESIDENTIAL ADDRESS. (From Our Own Correspondent.) LONDON, April 28. Sir Edward M. lliffe, in his presidential address at the annual meeting of the Association of British Chambers of Commerce, stressed the necessity for Great Britain to expand further her export trade and to manufacture a larger proportion of her home, requirements if the unemployment situation is to be permanently improved. - The export trade of every country in the world, he said, had shown a considerable contraction in recent years, but Great Britain had been far more fortunate than any other country in that respect. This country could not hope to regain national prosperity until the nations from which she bought recognised that trade wa s exchange, and that only if they bought her exports could she, in turn, continue to buy freely from them. No real increase in Britain’s export trade, nevertheless, could have been expected until after the Ottawa agreements became

operative and until the new trade agreements which are now being negotiated with many foreign countries -were concluded and put into operation. Already, he was glad to say, there were signs of expansion in Britain’s export trade. For some time there had been an increase in the bulk of her exports, although not in the value on account of the drop in world prices. Last month exports showed an actual increase in value as compared with March, 1932, of just over £1,000,000 sterling, or approximately 4 per cent. That was most encouraging, as was also Mr Runciman’s pre-Easter announcement in the House of Commons to the effect that new trade agreements with five countries were either completed or were well on the way to completion. “Although our foreign trade would be greatly facilitated by a fixed rate of exchange,” continued Sir Edward lliffe, “ this association is opposed to a return to a gold standard unless and until the great creditor nations, and in particular the greatest creditor nation, the U.S.A., are willing to accept payment from their debtors in goods and services and to lend money abroad. “This was Great Britain’s practice before the war, when the U.S.A. was a debtor nation, and we a greater creditor nation than we are to-day. Then, gold

was only used to adjust comparatively small, balances, and the gold standard worked satisfactorily. No gold standard, indeed, no standard, can function if great creditor nations refuse to accept payment in goods and services from their debtors. “When gold is treated as a,commodity and used instead of goods and services to balance the international exchange, the gold standard at once breaks down, and, as has happened in the last two years, reduces the richest nations in the world to a position of economic impotence.” HOME PRODUCTION. “This association has recently been in consultation with the Central Chambers of Agriculture with a view to ascertaining in what way industry can assist agriculture in its endeavour to replace home-grown for imported food. We, as an association, realise that .if it were possible to produce at home a greater percentage of the food we consume it would have a profound effect on unemployment and would stimulate the demand for' other products. “ We produce in this country approximately 37$ per cent, of the food consumed, and this home production employs upwards of 1,250,000 workers of all classes. If our home production could be doubled—that is, increased to 75 per i cent, of our total consumption—and I am

told by our agricultural friends that this is quite possible— then a further million or more hands would be employed in agriculture and the unemployment question would be largely solved.” The present high rate of taxation was an additional burden to industry, and there must be some alleviation in that respect before reasonable prosperity could return.