STEADY UPLIFT

Wanganui Chronicle, Volume 79, Issue 168, 20 July 1935, Page 9

STEADY UPLIFT

BRITAIN'S TRADE ; OPTIMISTIC OUTLOOK STIMULUS BY TARIFFS BENEFICIAL AGREEMENTS | British Official Wireless. ] .RUGBY, July 18. In the House of Commons the president of the Board of Trade, Mr. Walter 1 Runciman, made a survey uf trade and ; industry, in the course of which he reviewed the effects of recent trade agreements and the prospects of further industrial recovery. He said that the British trade figures showed year after year and month after month continuous growth. There was still a long way to go to reach the figures of .1929, but he approached the coming year in a spirit of restrained optimism. Th© United Kingdom exports for the first half of this year reached £206,000,OUO as against £189,000,000 for the first six months of last year, and taking articles wholly or mainly manufactured the increase was not only marked but healthy. The first six months of this year showed exports in this class of £160,000,000 as against £145,500,000 in the same period last year. Very substantial increases had be’en recorded in exports of machinery, the vehicles group, iron and steel, and even—in spite of the severe depression in Lancashire —in cotton yarns and manufactures, Among manufactured goods the most important successes were re* corded in the machinery classes, covering every kind of machine. Expansion in Home Trade. Turning to home trade, Mr. Runciman recalled that a year ago he expressed a fear that it was almost reaching saturation point. He was glad to say he had been unduly depressed in making that statement, for home trade had gone on steadily expanding throughout the whole of the year. The value of retail sales last year was actually 3 per cent, higher than in 1933. This expansion had increased at the same rate during the current year, and sales in the first five months were very nearly 4$ per cent, higher than intho corresponding period of 1934. Speaking of the effect of the tariffs system on employment, Mr. Runciman declared that.ihe stimulus given by tariffs during the past three yeans accounted to a large extent for the prosperity of our internal trade, and the roturn in sonic directions of our foreign markets as well. The tariffs had not only provided employment at home but they had also provided £20,000,000 for the Exchequer. Beneficial Agreements. The direct effect of the Ottawa Agreements had come up to expectations and the agreements had fended to stimulate Empire trade. Seventeen foreign trade agreements had been signed, and in 1934 British overseas trade increased by about 5 per cent. With British countries the rise had been about 12 per cent., and in the case of foreign countries with which agreements had been made the rise was 33 , per cent. Russia’s Undertaking Exceeded. Mr. Runcimau said that Russia, had far exceeded her undertaking, giving Britain an increased quota of exports. •She had chartered nearly twice the amount of shipping as compared with last year. Sir Herbert Samuel (Lib.) complained that the Government had failed to secure trade agreements and tariff reductions with the great nations. Lieutenant-Colonel D. J". Colville, in replying, said that in the first quarter of 1935, British exports to countries with which she had agreements increased by £4,498,000, approximately 20 per cent., as compared with the first quarter of 1933. Before the agreements were made the trade of other foreign countries had increased by only 7i per cent. He also detailed the exports under the Ottawa Agreement, and said they had risen from £lOO,I’oo,ooo in 1932 to £126,800,000 in 1934, including an increase to Australia from £20.000,000 to £26,300,000, and to New Zealand from £10,400,000 to £11,400,000.