TRADE EXPANDS

Southland Times, Issue 25341, 20 July 1935, Page 5

TRADE EXPANDS

BRITISH PROGRESS A CONTINUOUS GROWTH THE EFFECT OF TARIFFS SURVEY BY MINISTER (British Official Wireless.) Rugby, July 18. In the House of Commons Mr Walter Runciman, President of the Board of Trade, made a survey of trade and industry in which he reviewed the effects of recent trade agreements and the prospects of further industrial recovery. He said-that the British trade figures showed year after year and month after month a continuous growth. There was still a long way to go to reach the figures of 1929, but he approached the coming year in a spirit of restrained optimism. United Kingdom expoi'ts for the first half of this year had reached £206,000,000 against £189,000,000 for the first six months of last year and, taking the articles wholly or mainly manufactured, the increase was not only marked, but healthy. Increases in Exports. The first six months of this year showed exports in this class of £160,000,000 against £145,500,000 in the same period last year. Very substantial increases had been recorded in the exports of the machinery and vehicles group, in iron and steel, and even (in spite of the severe depression in Lancashire) in cotton yarns and manufactures. Among the manufactured goods the most important successes were recorded in the machinery classes, covering every kind of machine. Turning to the home trade, Mr Runciman recalled that a year ago he had expressed the fear that it was almost reaching saturation point. He was glad to say that he had been unduly depressed in making that statement, for the home trade had gone on steadily expanding throughout the whole year. The value of retail sales last year was actually 3 per cent, higher than in 1933. This expansion had increased at the same rate during the current year and sales in the first five months were very nearly 41 per cent, higher than in the corresponding period in 1934. Stimulus Given by Tariffs. Speaking of the effect of the tariff system on employment, Mr Runciman declared that the stimulus given by tariffs during the past three years had accounted to a large extent for the prosperity of Britain’s internal trade and the return in some directions of her foreign markets as well. Tariffs not only provided employment at home, but had also provided £20,000,000 for the Exchequer. The direct effect of the Ottawa agreements had come up to expectations and the agreements had tended to stimulate Empire trade. Seventeen foreign trade agreements had been signed and in 1934 British overseas trade had, increased about 5 per cent. With British countries the rise had been about 12 per cent, and in the case of foreign countries with which agreements had been made the rise was 33 per cent. Russia’s Part. Mr Runciman said Russia had far exceeded her undertaking, giving Britain an increased quota of exports. She had chartered nearly twice the amount of shipping compared with last year. Sir Herbert Samuel complained that the Government had failed to secure trade agreements and tariff reductions with the great nations. Mr D. J. Colville, replying, said that in the first quarter of 1935 British exports to countries with whom she had agreements had increased by £4,498,000, or approximately 20 per cent, compared with the first quarter of 1933 before the agreements. The trade with other foreigners had increased only 7£ per cent. He also detailed the exports under- the Ottawa agreements which had risen from £100,000,000 in 1932 to £126,800,000 in 1934, including Australian from £20,000,000 to £26,300,000 and New Zealand from £10,400,000 to £11,400,000.