VITALITY OF BRITAIN

Taranaki Daily News, 15 August 1931, Page 5

VITALITY OF BRITAIN

INDUSTRIAL DEVELOPMENT, MEETING DEMANDS OF DAY. “I have no patience with the argument that Britain is ‘down and out,’ as that is not true,” declared Mr. F. W. Mothes, managing-director of the Goldberg Advertising Agency, to an Auckland interviewer in giving his impressions of conditions in the Old Country as observed by him while acting as director in charge of the firm’s London office during the past eight years. “Because Britain has been giving her closest attention to her own internal troubles,, particularly loss of trade and unemployment, she has been too busy to trouble about what other countries think of her, but during that period a remarkable process of solid reorganisation has been going on in British industry,” eaid Mr. Mothes. “Many business men awakened to the fact that the world -had been moving too fast for their particular product, and were-driven to the realisation that, if they wished to retain their place in the sun, it would be necessary to reorganise their industrial situation, even in some cases to the extent of producing ’an entirely new article. “That naturally caused a great dislocation in many factories for the moment and considerable unemployment has resulted. However, by installing more modern machinery and following more up-to-date processes, those industries are now beginning to reabsorb their original staffs, and, in some cases, are able to give employment to a greater number than before.

“Britain’s unemployment problem is going to be eliminated, gradually, but surely, as those now unemployed are absorbed in directions not previously thought possible. “Take the British motor-building industry as an example,” said Mr. Mothes. “Aa far as one can judge, saturation point in that business will not be reached until some indefinite time in the' future. The success of several British firms, the names of which come readily, to the mind, has been so marked that I am prepared to say there is a tremendous future for British cars in spite of keen American competition. Hundreds of thousands of men are engaged in the motor industry in Britain to-day. Not only is the car business benefiting as a result of that activity, but the development is also proving the salvation of many businesses concerned with iron and steel processes. “Then, there has been a very marked development in connection with the artificial silk industry. Great firms, employing tens of thousands of hands, recently have come into the market and have superseded many of the cotton manufacturing concerns, whoso businesses suffered limitations because of the vagaries of fashion.

“At the same time there has been, a distinct redevelopment in the British boot industry. From the point of view of style, quality and price, the British shoe is now among the world’s leaders. Tho demands imposed by modern fashions have been met by the boot and shoe designers, and many British boot firms now have representatives, not only in the Dominions, but also in Germany, France and the United States, which previously were closed to British manufacturers. And the pleasing feature is that the British article is holding its own in those invaded markets in spite of the most intensive competition. “England, of course, is suffering from a certain amount of internal difference of opinion regarding the respective merits of a free’ trade or a protectionist policy. Obviously, those in favour of either' policy will be face to face with difficulties whichever way the decision is made. I believe that in the next few years there will be a stronger agitation in favour of closer union between Britain and the Dominions in trade matters.

“Ultimately, I believe, there will be devised a working compromise to cover the harmonious interchange of commodities- between Britain and the Dominions, whereby preference will be given both in Britain and the Dominions to Empire products, with a corresponding preference against the rival foreign commodities. Although Empire preference is practised .to- some extent now, I believe the arrangement will be more definitely circumscribed in the future.”