The Daily News TUESDAY, JANUARY 4, 1927. BRITISH TRADE RECOVERY.

Taranaki Daily News, 4 January 1927, Page 6

The Daily News TUESDAY, JANUARY 4, 1927. BRITISH TRADE RECOVERY.

The spirit of optimism that pervades the forecast with regard to British trade in the year upon which we have just entered, is prominently endorsed by the Premier of New Zealand (Rt. Hon. J. G. Coates) in his New Year’s message from London, wherein he states-. “I am glad io say there is a reason for believing better times are ahead. The . clouds of industrial depression, which have long hung over Britain, are diminishing, and an era of prosperity is dawning,. in which I hope New Zealand will correspondingly benefit, because our material well-being is inseparably linked with that of the United Kingdom.”

The utmost satisfaction should be felt throughout the Empire at the tone of quiet confidence which marfcs the turn of the tide in the Old Country, indicating that England is about to emerge from the clouds of depression and retake the lead in the trade of the world. In all classes of business there is said to be evinced a cheery optimism, accompanied by a general disposition to forget the troubles and bad times of 1926, troubles which not only. inflicted serious hardships and losses on the peo pie at Home, but had a depreciating influence upon the values of produce exported by the southernmost Dominions of the Empire. The gratifying feature of this confidence and optimism is that it is based, not upon "castles in the' air,” but upon the fact that the- general trade position at the close of last 1 year was better than for years past. The iron and’steel trades and a number of shipyards have more orders than for some time past, while there is a notable increase hr the activity of other exporting' industries on which the prosperity of Britain to a large extent depends. Another very important factor in the improved outlook is that the London Stock Exchange "radiates cheerfulness, talking hopefully of cheaper money in the New Year,” while the growth of amalgamations of great industrial concerns is taken as a reliable sign that Britain is coneentrating on a determined effort to take the lead. The fulcrum for setting these important industrial operations in motion is capital, and it is evident there is no lack of that in sight—and available at a cheaper rate than of late. Practically, the position is that, provided the workers refrain from tactics inimical to their own interests and those of industry generally, they will certainly be the gainers, the more so if they give of their best efforts to improve the industrial position, bearing in mind that much trade, owing to their ill-advised and shortsighted policy of fighting against instead of co-operating with the employers, has been diverted to other countries and must be recaptured in the face of keen competition. The energetic campaign which has been launched with the object of stimulating the peoples of the Empire to buy British goods will be frustrated if industrial troubles prevent such goods from being manufactured, or the cost of production unduly. inflated, thereby playing intft , jhe hands Of foreign suppliers. The movement is one that should have, the hearty co-operation, of the

workers at Home, because of its beneficial effect in overcoming unemployment and improving their conditions of life. It should also arouse a reciprocal feeling in the direction of buying the primary produce of the Dominions, if only, for the reason that the more revenue obtained ir that way the greater will be the spending power , of the producers for Home manufactures. Meanwhile it is satisfactory to learn that the butter trade continues to be active in Britain, and it may confidently be expected that the improved industrial prospect that opened out as the result of the coalminers returning to work, will make for a largely increased demand for dairy produce. The decrease in Australian supplies is expected to have a beneficial effect upon New Zealand’s output and its market value. As to wool, the prices reached at the local sales indicate that markets continue - favourable to the producers,' and this satisfactory feature has ' been reflected at ,the Home . sales. It is stated that values of raw materials to-day are more in accord with the value of the finished article than they have been for a considerable time, so that with wool on its present basis there should be no likelihood of any serious decline. It may, therefore, be assumed that the stabilising of values has been reached, so that the producers may be able to anticipate fairly approximately the extent of the return they will probably receive for the finer- grades of their clip. Medium and coarse crossbreds generally find a fair demand at payable prices. The world’s supplies of the raw material are still sufficiently below requirements to warrant expectations of satisfactory values. Taking all factors into consideration the position as to Empire trade appears to justify the spirit of confidence and optimism which prevails in ihe Mother Country, and it is to be sincerely hoped that after the heavy losses sustained in Britain and elsewhere by senseless industrial strife, there will be the urgently needed concentration on output, so that the year 1927 may prove to be the dawning of a new era of industrial peace and prosperity throughout the Empire.