RECOVERY BADLY SPREAD

Taranaki Daily News, 23 July 1934, Page 5

RECOVERY BADLY SPREAD

GREAT BRITAIN’S INDUSTRY

“SOUTHERN DIRIFT” FEATURE

INCREASED EXPORT NEEDED

MARKET EXPANSION LIMIT

By Telegraph—Press Assn. —Copyright. Rec. 6.35 p.m. London, July 21. An article in the Westminster Bank Review dealing with the industrial recovery in Great Britain describes how unevenly the recovery is spread oyer different areas and different industries. Thus the south and the Midlands of England fared better than the north of England, Scotland or Wales. The greater basic industries have been worse hit than the newer industries, particularly those catering principally for home consumption. , The greater intensity of unemployment in the north of England and in Scotland is partly reflected in tho southern drift” of British industry. There is a tendency for new industries to settle in the Midlands and in the south rather than in the north. Various. causes, account for this tendency, but it is reasonable to assume that the high local rates which are inevitable in poverty stricken areas have helped to divert new industries elsewhere, so that the very intensity of unemployment in the most depressed areas has been th obstacle to its relief by natural methods. ‘‘ln some quarters,” the article concludes, “it is questioned whether the recovery movement has not attained its zenith and whether the limit of expansion of the home market has not been reached. Whatever the answer to the second question is, it seems inevitable that the time will come when that point will have been reached, and. unless a substantial enlargement and broadening of the export trade has been achieved meanwhile, some reaction must be expected, with an adverse effect on employment figures. It is only through an increased export trade that the obstinate problem of unemployment will be solved.”