REVIVAL OF TRADE

Poverty Bay Herald, Volume LXVI, Issue 19885, 11 March 1939, Page 6

REVIVAL OF TRADE

HOPEFUL BRITISH VIEW

EFFICIENCY V. OBSTACLES

\ FINANCIAL REVIEW

(Klec. Tel. Copyright—United Tress Assn.) LONDON, Feb. 13.

Distinguished leaders of industry, writing in the Daily Telegraph's Annual Financial Review, express a hopeful view about a revival of home and foreign trade. Admittedly, they state, all countries are apparently combining to strangle trade. There are many serious trades obstacles, including the spirit of ultranationalism, international political uncertainties, subsidised foreign competition, and the Spanish war's actual interference with European trade. In addition, Japan is closing the doors to the Far East.

Nevertheless. there are many favourable features, including the increased efficiency of workers, modernised machinery, and reorganisations and amalgamations, which are avoiding wasteful competition. If Tension Could Be Allayed

The United States, in spite of its formidable shipping subsidies, has indicated its recognition of the need tor removing artificial restrictions on international trade.

Remembering the desire of every people for established peace, if tension could be .allayed, there would be splendid opportunities for industrial improvement in many parts of Europe and elsewhere, involving a vast amount of capital, which the democracies could supply.

Viscount Lymington, M.P., formerly a member of the Milk Marketing Board, points out that agriculture is suffering from waste. The greatest waste is in the consumption of the soil's capital with a view to producing cheap food. The second is the waste of skilled agricultural labour. The third 'is the waste of all organic refuse. The fourth is the waste in the cost of distribution. Despite improved marketing, farmers are receiving only half the retail price of their products. "Danger of World Famine"

He adds that soil erosion in America, Australia, New Zealand, Africa, China, and Russia is so serious that there is a danger of a world famine.

"Undoubtedly, if Asia's underfed millions were properly nourished there would be a food shortage, even with an exceptionally favourable world harvest," Lord Lymington adds. "We should encourage the development of mixed farming in the rich, new lands of the Dominions." Sir Maurice Denny, chairman of William Denny and Brothers, Limited, shipbuilders, draws attention to the decay of the shipbuilding industry. He emphasises that in the 10 years before the war Britain launched CO per cent, of the world's ships. To-day she is building slightly more than 30 per cent. A wool expert says that 1938 left an unpleasant impression in the minds and: pockets of wool producers, because prices were below the level which the cost of production and the utility of the commodity demanded. This' could be traced to unsettled world conditions.

There is no reason for apprehension about synthetic wool, he adds. There has been continued improvement in the qualitybf Australian wool and the machinery for its treatment.

"Let us courageously persevere in providing wools in accordance with customers' needs and in using propaganda to extend markets," he adds.