ENGLAND A MADHOUSE

Otago Daily Times, Issue 23204, 31 May 1937, Page 6

ENGLAND A MADHOUSE

SPENDING MILLIONS OF POUNDS SECOND-HAND MACHINE TOOLS FROM UNITED STATES Writing to a Dunedin firm on April 12, an important New York firm has this to say:— A situation is apparently developing all over the world, and particularly in Europe, where, due to the labour required in the production of armaments in addition to the increased manufacturing for ordinary requirements we must expect increasing prices and longer deliveries Some members of our organisation, just -eturning from the Continent, report that more and more labour is being used for armaments, airships and shipbuilding, so that the cost of other items is rapidly rising. We have a letter today from one of our men, who has been spending some time in England purchasing certain items for us, from which we quote:

"England to-day is a madhouse as regards increased production. I have never seen a boom such as is now going on here, and it is really bewildering. The Government now comes "along with its rearmament orogramme and is spending millions of pounds. It evidently had its plans all laid before this programme was passed, and passed orders right and left to anyone who would take them. The result is that there was an immediate shortage of metals of all sorts—in fact, everything that goes into making of ammunition,/tanks, airships and the machine tools that make them. Recently there have been millions of pounds worth of second-hand machine tools imported from the United States, and in order to secure immediate delivery prices paid have been higher than the cost of new machines. Large companies.in England have recalled their salesmen, and are now using them in an endeavour to secure raw materials." This same type of report is reaching us from many sections abroad. There is no question but that here in the United States, due to increased labour costs and the fact that tremendous orders are being placed here by Europeans, we are facing increased prices and longer deliveries. We will probably continue for some time to be lower in price and make more prompt deliveries than can be made from Europe, but we are quite convinced that anything that is purchased now cannot be replaced a few months hence except at a much higher price.