OPTIMISTIC VIEW

Wanganui Chronicle, Volume 79, Issue 206, 3 September 1935, Page 7

OPTIMISTIC VIEW

BUSINESS IN BRITAIN PRODUCTION VOLUME GROWS “LOOK TO HOME MARKET” [By Telegraph—Press Association—Copyright? LONDON, Sept. 1. The Midland Bank, in its quarterly review and survey of the business outlook, takes an optimistic view. After referring to the decline in the number of insured persons and to the fact, that unemployment is below two' millions for the first time in five years, which, however, affords only moderate satisfaction when it is remembered that only ten years ago one million was regarded as distressingly high, the review proceeds: “Meanwhile the volume of production has surpassed the 1934 level. 'The number of insured workers employed is larger than evtf at approximately 10,400,000. “An important difference between conditions ten years ago and now Jiea iu a further shrinkage of the export trade. The volume of our exports, notwithstanding some recent improve* ments, is still only about three-quarters of what it was in 1924. “Recovery, moreover, can hardly b< rapid and may not for some years take us back even to the early post-wai level, • Proportion of Exports. “According to an inquiry made by Messrs. Daniels and Campion, of the Manchester University, into the relative importance of our export trade, judged by the new value of the output of industrial and agricultural commodities, exports absorbed between 21 per cent, and 24 per cent, of our products in 1924-25. The estimated pro portion for 1930-31 was between 16? to 20 per cent., and a tentative esti mate for 1934 puts an even lower proportion.

“As the result of the marked expansion of home business roughly speaking five-sixths of our current production is for consumption at home. It thus becomes still more evident that for further business recovery we mutf continue to look mainly to the hoix market.”