RETURNING CONFIDENCE

Otago Daily Times, Issue 22063, 20 September 1933, Page 8

RETURNING CONFIDENCE

CONDITIONS AT HOME BIG REVIVAL IN TRADE DECREASE IN UNEMPLOYMENT (Per United Press Association.) WELLINGTON, September 19. “ Judged from the decrease in unemployment figures, the increase in investments for the development of manufacturing, the budgetary position, the decreased importation of manufactured goods, and increased importation of raw material, it is apparent that a measure of prosperity has returned to Britain,” stated the Minister of Industries and Commerce (Mr E. Masters) to-day. “ Perhaps no better indication as" to the revival that has taken place could be secured than from the reduction of unemployment registrations during the months from February to June inclusive, the total registrations having been reduced by 464,987, while in June of this year there were 144,500 fewer unemployed than in the month of May. The improvement covers a wide area of industries, including iron and steel manufacture, engineering, ship-building and repairing, textile industries, metal goods manufacture, building and the motor trade. The employment figures are particularly encouraging, and the improvement extends to almost every trade. In comparison with this the rest of the world is suffering from a growth of the figures in unemployment. “ With regard to the export trade of the four great commercial nations of ehe world, one can make a very significant comparison. The percentage values of the decline in exports during the first four months of the year compared with last year showed the United States as having dropped by 27 per cent., Germany 25 per cent., and France 14 per cent., while Britain’s decrease is 7 per cent. The statistical figures indicate that the recovery is widespread, the improvement having taken place in 90 per cent, of the industrial groups. The motor market had been steadily improving for some time and remains brisk, the sales during the present year showing a considerable improvement on those of the previous year. Substantial increases have taken pjace in the export business not only within the Empire but also with foreign countries.” It was interesting to note, said Mr Masters, that as a result of the Ottawa agreement Canada alone had increased her purchase of cars by 109 per cent. The 10 h.p. car had been in most popular demand, and seemed to be asserting itself as the family car. Motor factories which usually slowed down at this time of the year were finding the pressure sufficient to continue manufacturing. “ The returning confidence had reflected itself in the retail business also,” continued the Minister, " and the people are loosening their purse strings, as is reported by the largest retail businesses. Messrs Gamages, Ltd., said: “Last year’s sale was good, but this was better. More money was spent in all departments.’ Messrs Harrods said: ‘The mail department increased by 10 per bent, and our ordinary sales showed a considerable increase, the most significant being a great improvement in heavy goods like furniture, carpets, ironmongery, linen, blankets, etc.’ Messrs Selfridge’s report that they served many more customers than last year. “The building trade was particularly active in and around London during the time we were there, and although I did not have the opportunity of seeing the activities ‘in the smaller cities and towns, I am given to understand that what applied in London applied in a similar degree in the smaller centres. The return of confidence of the investing public is really remarkable, as no less than £40,000,000 was invested in new companies during the first six months of this year, while the figures for 1931 were £27,729,000, and for 1932 £34,057,000. The stock markets were buoyant, industrial and commodity shares being in special demand. “ Those who are naturally cautious in expressing their views about drawing optimistic deductions are agreed that there is good reason for coming to the conclusion that trade generally is, in for better times. Three of the largest savings bank institutions, viz., the Saving Certificates and post office savings banks and the trustee savings banks, which really are the hanks of the working people of Great Britain, showed that the personal savings had increased by £26,000,000 during the first six months of the present year, the post office accounting for about 50 per cent, of the total. “My own opinion is that this undoubted revival in trade and confidence in the future have in a very large measure been responsible for lifting the depressed values of our primary products from the prices which were ranging in the earlier part of the year to those of to-day. I feel that I cannot do better in summing up the position than repeat the words of Mr Neville Chamberlain when speaking in the House of Commons recently: ‘We are more than holding our own. I think we have at. least begun to .see signs which show unmistakably that the improvement is not a fleeting one. It has a solid foundation which may be expected to continue, and I believe that the result of our efforts is now beginning to show itself to advantage.’ ”