The Daily News. FRIDAY, AUGUST 26, 1921. MORE HOPEFUL PROSPECTS.

Taranaki Daily News, 26 August 1921, Page 4

The Daily News. FRIDAY, AUGUST 26, 1921. MORE HOPEFUL PROSPECTS.

The latest review of the trade outlook in Britain indicates that business conditions are on the eve of recovery from the recent depression, and that the coming months are likely to bring more hopeful prospects. According to the Statist—whose opinion generally carries much weight—“there is a universal absence of financial stringency after one of the severest periods of financial strain that has ever been witnessed.” This is certainly good news, though it does not warrant undue optimism, for- it is obvious that such an intense strain will inevitably take time to completely re-establish confidence and give the necessary stimulus to enterprise. This is emphasised by the fact that banks are not offering anything like old-time facilities, and without these the recovery of brisk trade and industrial operations cannot be expected. At the same time it is only too evident that in face of the trade boom which is still gathering strength in Germany, unless British captains of industry rise to the occasion they will find the Germans capturing markets with greater energy than before the war. The position of the share market as regards industrial concerns leaves no possible doubt that there is room for much improvement. It is always a bad sign when this class of shares declines in value, and it is remarkable that the settlement of the coal strike, and the decline in wages, have not been succeeded by a marked expansion of business. The position, however, is said to be steadily improving, but there can be no question that the oppressive taxation is still an adverse factor in trade revival. The best sign of improved conditions is that confidence is returning, but until the banks adequately share in that confidence, and act accordingly, only a limited improvement in the outlook can be expected. The world is still needing supplies of commodities, but will not, or cannot, pay inflated prices. Germany has been quick to realise this, with the result that her iron and steel trades are said to be very busy, while the textile branches are enjoying sudden and quicklyincreasing prosperity, clothing, tailoring, millinery and underwear industries having more orders than they can execute. This aspect of affairs tells its own tale, and it is worthy of note that, while the clothing and millinery business is so great in Germany, the high prices which have to be paid in the Dominions for those goods stresses the need for a much greater activity in production by British manufacturers and an ap-

preciable reduction in the cost. In connection with this question of cost it would seem that shipping freights, in spite of the reduction in the price of bunker coal from forty-one shillings to twenty-six for Tyneside and twenty shillings for South Wales, are still an adverse factor in trade recovery. A case is reported from Carterton in which the duty and freight on a consignment of greenhouse glass from Belgium cost two pounds more than the amount paid for the material. While such a state of affairs exists trade will be heavily handicapped. An almost similar experience is the lot of those who ship some of the primary products from the Dominion to the London market, and yet layge numbers, of ships are laid up for want of cargo, while others sail in ballast sooner than obtain freight at reduced rates. A notable feature of Germany’s trade expansion is that the manufacturers there are said to be supplying wholesale export houses in, England with both men’s and boys’ wear, and fabrics at less than they can be made at Bradford, so that the people of the Dominions may be buying German goods passed on to them by British merchants bent on making easy .profits by trading with Germany. It would seem that some effective steps should be taken to ensure- that all goods from Germany should be clearly marked so that the purchasers will know the source of origin. If this trade is to be carried on in this way it will be a serious blow to British industry and a fraud on the purchasers. The proper remedy is for British manufacturers to get busy and supply whqt is needed at a reasonable cost, otherwise, though Germany was defeated in the military struggle she will secure an economic victory of far-reaching importance. It is to be hoped that, matters will soon be "placed on a more satisfactory footing, and that now the severest phase of the depression and stringency has passed, there will be a determined effort made to do all that is possible to re-establish the conditions on which Britain flourished before the war. The greater the prosperity in Britain the better it will be for the producers of the Dominions.