EXPORT TRADE IN WAR TIME

Southland Times, Issue 24055, 20 February 1940, Page 5

EXPORT TRADE IN WAR TIME

Need For Economy Emphasized RIVAL CLAIMS ON RESOURCES (British Official Wireless) RUGBY, February 18. The importance of maintaining export trade was emphasized in a speech at Nottingham by the Lord Privy Seal (Sir Samuel Hoare), who discussed the question of where the balance between the rival claims of the fighting services and the export industries was to be fixed. The Government was conscious of the need for adequate man power and sufficient raw materials to maintain the export trade, realizing that without an income from this they could not expect to maintain through the struggle the purchase of commodities vital to the war industries or essential to nourish the people. Gold, foreign securities and export trade were the main sources of buying power abroad. FOREIGN RESOURCES “If we dig too deeply into the resources abroad,” said Sir Samuel, “and if they diminish too fast national credit will suffer damage on that account. I believe it is possible to maintain our fighting forces at the full strength and, at the same time, not only maintain but even expand our export trade. But if we are to succeed in this act we must economize in the uses of labour and also in the uses of products of labour. We must direct the energies of our working men and women to producing goods for service in foreign markets. “It might be said that there is no need to economize in labour so long as we have 1,361,000 unemployed in Britain, but that figure is misleading. When casual workers are deducted, when account has been taken of men passing from one job to another, and when other adjustments have been made, the sum total of those immediately available for work is very much less. The reserve of immediately available man power in the labour market is probably not half that total number, and it is inevitable that this small reserve should [ disappear. All the men in it should find their way into productive work before long.” ECONOMY IN LABOUR Discussing how to secure economy in the use of labour, Sir Samuel said everyone must restrict their right to buy, reconciling themselves to increases in taxation and save as much as possible. He paid a tribute to the national savings campaign, under which more than £85,000,000 has been raised for national purposes. After pointing out the importance of restricting imports, he dealt with the question of wages. The Government’s policy, he said, was to sustain buying power and the weekly pay envelopes. Discussing the difference between real and money wages, Sir Samuel Hoare pointed out the dangers of inflation and said that in Britain, with its long-established tradition of free bargaining, it was impossible to issue an edict prohibiting any wage rise. The British were reasonable people and given the facts they would reach the right conclusion. Food economy, he said, would secure economy of labour, and he appealed to all to reduce the consumption of unnecessary food as far as possible. There was no form of economy which would give bigger returns and bring swifter results than economy in imported food purchases and foodstuffs from abroad, the biggest item in foreign spendings. After dealing with home production of food, the speaker said it was expected to increase the available land by 2,000,000 acres, this being an increase of 20 per cent, of the land under the plough. The towns must also do their part by cultivating gardens and allotments to the full.