TRADE CONDITIONS.

Otago Witness, Issue 4085, 28 June 1932, Page 10

TRADE CONDITIONS.

A TRAVELLER’S IMPRESSIONS ACUTE DISTRESS IN AMERICA TRADE REVIVAL IN BRITAIN. The opinion that many countries were feeling the effects of the 11 economic blizzard ” to a much greater extent than New Zealand was expressed to our representative on Wednesday evening by Air C. E. Spence, of Lancashire. Mr Spence, who is visiting the Dominion as the representative of Messrs James Williamson and Son, Ltd., one of the largest manufacturers of linoleum in the world, has recently been in t|jtp United States, and has come to New Zealand by way . of South America. He is, therefore, in a position to express an opinion on the relative prosperity of the countries through which he has passed, and he stated emphatically that there is at the present time not the slightest doubt that New Zealand is in a vew enviable position as compared, for instance, with the United States. In fact, although he did not say so in so many words, it was evident that Mr Spence considered that the average New Zealander rather more than his circumstances warranted. UNEMPLOYMENT IN AMERICA. In Argentina, he explained, the Government officials had not been paid for six months, and, as the result of political changes combined with the financial depression, the country was in an extremely difficult position. The present Government was raising an internal loan of approximately £30,000,000 to meet its obligations within its own borders. In the United States, although the number of. unemployed was officially estimated at 10,000,000, the visitor was of opinion that it was at least 5,000,000 more, and there was no system of unemployment relief as in this country cr in England. Those in distress were being cared for by charitable organisations, and soup kitchens were very much in evidence. TRADE RECOVERY IN BRITAIN. England, on the other hand, was experiencing what was apparently the beginning of the return of prosperity, and Mr Spence stated that when he left Home some four months ago there were abundant signs of a revival of trade. Although seasonal fluctuations made it extremely difficult to arrive at a correct figure, it was considered that the unemployment figures had fallen by 500,000. This could be attributed to the introduction of the tariffs, which had made a wonderful difference to business in Great Britain. The fact that the English manufacturer could now be assured of a home market was in itself of great value, and this in turn enabled him to reduce his prices for export, with the result that British goods wore now able to compete on a more even basis in the markets of the world. The tariffs also placed in the hands of the British Government a valuable weapon when bargaining for more favourable trade terms with other countries, and it was known at Home that at the conclusion of the Ottawa Conference several nations, including France, would negotiate with Great Britain for trade treaties. As showing the effect of protective duties on production, Mr Spence stated that it was within his knowledge that since the new tariffs had been imposed 47 factories had been opened in England by foreign manufacturers. Practically all the labour employed in these factories must be British, as under the existing legislation it was impossible for a firm to employ aliens in Great Britain unless it could be shown that they were indispensable for the work to be performed. Although the majority of the British people were Freetraders at heart, it was realised that, when every other country had erected high tariff barriers, Great Britain could not afford to remain a dumping ground for the manufacturers of Europe and America. EMPIRE TARIFF PROBLEMS. It was with the feeling that the creation of tariffs was a necessity, although by no means a desirable expedient, that. Great Britain wag approaching the Ottawa Conference. It was felt that, if barriers to trade between nations must be erected, at least they should be barriers within which the Empire would exist as more or less an economic unit. Mr Spence voiced the opinion that if any difficulty arose at Ottawa it would be as a result of the Canadian viewpoint. Canada would be satisfied to give Britain a fairly open market provided that the latter absorbed her exportable wheat surplus. This, however, would be impossible in view of the fact that the huge amount of British capital invested in Argentina made it imperative that consideration should be given to that country also. Another difficulty lay in the fact that Canada had at her very door a neighbour who could supply practically all her needs in the way of manu‘factured goods. It was possible that Canada would ask for something which the British Government would be unable to grant, and therein lay the element of danger to the success of the conference.

Mr Spence stated that the action of Great Britain in going off the gold standard Ifltd been of considerable benefit to manufacturers with a foreign market. The resultant fall in the value of the pound sterling had enabled them to market their goods at a price which made American competition more difficult. As an instance of this. Mr Spence pointed out' that the United States was now practically unable to sell against the British manufacturers in Argentina, where British goods had virtually captured the market. So favourable, indeed, had been the result of the abandonment of the gold standard that the visitor stated he felt certain that Britain would not return to it within the next 10 years. BUTTER MARKETING METHODS. Mr Spence strongly criticised the New Zealand methods of marketing dairy produce. New . Zealand frozen lamb, he said, was well known throughout England and Scotland, but, except in London and the south of England, New Zealand butter was practically never seen. In the great industrial areas of the Midlands and the north, with their large centres of population, he had never once

seen a pound of New Zealand butter displayed for sale in the shops. Danish: butter was well known, but the Dominion in its endeavours to develop the British market appeared to have overlooked one of the most important fields; for extension.