TRADE REVIVAL

Poverty Bay Herald, Volume LXIII, Issue 19135, 2 October 1936, Page 12

TRADE REVIVAL

::iSITUATION IN BRITAIN NOiIDUE-TO ARMAMENTS OF FRANC "*"«The prosperity now toeing enjoyed in Great Britain is emphatically not di»' to the construction of armaments," said Sir Montague Burton, a British delegate to the Federated Chambers of Commerce Congress, on Ma arrival at Auckland. Sir Montague is- a clothing manufacturer of Leeds, England, and his firm, Montague Burton! Limited, has 15,000 persons on its pay-roll and claims to be the largest* buyer of Australian and New Zealand wool in the world. Sir Montague said the revival of trado in Britain set in with the Government conversion scheme, the departure from the gold standard in the autumn of 1932, and the coming into power of the National Government, which established that spirit of confidence which was the basis of good trade. The conversion scheme was responsible for a flow of capital into industrial channels, which acted as a fertiliser. Industry generally had never enjoyed such a remarkable period of prosperity in normal times as during the last 'four years. Rearmament activities started only in the past 12 months and the results wouhf not be felt for some time. Sir Montague said his firm had business interests in armament centres and consequently his views.were based on experience. HOUSE-BUILDING SCHEMES Another important factor which had .contributed •to the revival in trade wa9 the improved standard of life which had resulted from £100,000,000 being spent on replacing insanitary homes in congested areas, and also building attractive homesteads in new areas in healthy rural surroundings. The new homes created a demand for new furniture, and the labour engaged in'buildihg now homes and producing furniture meant more money spent on food, clothing, radios, cinemas and motor cars. Prosperity and depression were each like a snowball. Apart from business interests, which reacted adversely when there were rumors of international conflicts, there was also the more important humanitarian aspect, and for that Teason nobody in Great Britain was enthusiastic at the prospect of seeing some plants now engaged in making ploughshares being converted for the manufacture Of swords. .In this respect, 1M devalution of the franc reported recently was important in its possible consequences. It might give France a .trading advantage, but it was very necessary to start French industry going again. France was the home of democracy on the Continent, and he believed that democracy was the sheet anchor against the fall of civilisation. :. THBEAT TO CIVILISATION of us who have witnessed what has occurred dictator countries believe that if their systems are continued and extended civilisation will perish," continued Sir Montague. "Even the form of dictatorship typifie'd". by Mussolini, which was brought about by the least amount of conflict, harj produced consequences which had not been anticipated, and threatens to smash the League of Nations. France, Britain and America retain the principles of individual liberty which have been threatened by the extremists of right and left. "Sqnfe- badly-informed public "opinion in America desires to steer clear ofthe European muddle,'but it forgets or does not realise that whichever extreme element gets into control in Europe, it will endeavour to make contact with similar extremist opinion in America and seek to cultivate it."