TRADE IN BRITAIN

Wanganui Chronicle, Volume 72, Issue 8, 10 January 1929, Page 3

TRADE IN BRITAIN

INDUSTRIAL PROBLEMS NEW METHODS SUGGESTED Commercial and economic conditions in Britain were discussed in Wellington last week by Sir Thomas Alaekenzie, AI.L.C., on his return from a nine months’ visit to England. Speaking generally of British industry, Sir Thomas said it was struggling hard, in face of many drawbacks to maintain its local and overseas trade, and the leading active commercial minds realised that an entire change of method in production aipl in disposing of products was essential if Britain was to hold her own. Ecferrii g to the need for a change in the methods of industrial produeti >n, Sir Thomas mentioned a recent statement by Lord Alelchett, a leading au thority on national industry, that if Britain continued to conduct her industries in the present antiquated maMner, she would fall still further behind in the race of industrial efficiency. Industry to-day, he had pointed out, was no longer merely one company versus another company. It was really in tion versus nation. The markets of the world to-day had become one unit. Another authority with whom Sir Thomas Alackenzie came frequently into close contact —Colonel Vernon Willey, who was particularly well qualified to speak concerning the woollen manufacturing- industry—had also emphasised the need for a reorganis ition of industry and for adaptation to modern requirements. He declared that the British manufacturer had nos modernised his plant and. his methods, while others had done so. The central idea, said Colonel Willey, was that big combinations must be brought together, not for the purpose of reducing wag°s and depending on that, but to minimise overhead costs by producing large quantities and adopting thorough methods of marketing throughout the countries of the world. Falling Off in Trade Sir Thomas said that there could be no doubt that Britain was very far behind other countries in manufacturing and methods of developing over seas trade. Reliable figures culled from chambers of commerce and other journals indicated plainly the falling off in trade. Whilo the United States had managed to increase its trade in Europe, the trade of Britain had fallen off. In South America the United States had increased its trade from 16 per cent, to 29 per cent., while Britain had receded from 28 per cent, to 20 per cent. Again, in China and Japan, Britain had lost ground. It was only in her overseas possessions that Britain’s trade had been increased, and that had been largely the

result of preferential tariffs. Apart from the fact that in many cases modefj isation had not been adopted, the increased costs in manufacturing hid caused the importation of enormous quantities of materials which were made at Home. Bir Thomas cited the importation of 180,0UU,00U builders’ bricks and 38,000,000 tiles, and also said that when the Post Office authorities in London wanted copper wire ."’r the telephone system they had been obliged to place a £60,000 order in Germany, the British manufacturers maintaining that the high cost of production left them with no margin of profit. Statement by Mr Baldwin Sir Thomas said that a good deal of attention was being devoted to the industrial problem by the Prime Minister, Air Baldwin, who had expressed the opinion that British industry was justifying itself and that Britain would soon emerge an efficient industrial na-. tion. In seeking causes for the present position Air Baldwin had pointed out that certain industries had been built up to success by the hard-work-ing efforts of self-made individual manufacturers. Their sons were sent to public schools and universities, and in many instances cared little for the businesses their fathers had established, and were drawn into joint stock companies. Mr Baldwin had pointed out that a type of company director was developing who must be dealt with; there had battened on to joint stock companies large numbers of men connected wi‘h the management and directorate who were merely parasitical, and it was necessary to deal with the matter by legislation. Sir Thomas said that many people in England looked to the safeguarding policy of the AlcKenna duties as a means of improving industrial conditions in Britain, and in certain industries which had been wisely selected for safeguarding much good had resulted. The motor manufacturing industry, and the piano trade, for instance, had been enormously benefit© I. •