THURSDAY, OCTOBER 6, 1921. TRADE DEPRESSION

Waikato Times, Volume 94, Issue 14768, 6 October 1921, Page 4

THURSDAY, OCTOBER 6, 1921. TRADE DEPRESSION

That the rehabilitation of the Empire's trade will not prove a speedy matter is becoming increasingly manifest. Experts who have been conferring with the Imperial Government are convinced that the country must be prepared for a period of depression extending over two or three years. This is not a very alluring prospect; but at present it must be admitted that the indications are in favour of the prediction. The volume of unemployment is causing considerable perturbation, and while it is not improbable that there are those who arc endeavouring to exploit the position for sinister purposes, there can be no question that the outlook for the coming winter in the Old Country is gloomy indeed. Coming in the wake of other untoward events is the announcement that the Welsh coal mines have closed down indefinitely, as the heavy working costs render it impossible to prosecute the industry. This will throw many additional thousands idle, and unless there are some unforeseen developments it is much to be feared that there will he much hardship and suffering in Britain, among lite poorer classes, during the next six or seven months. The fact that there is a coal slump is in itself a most ominous sign. In the past the demand for British coal was only limited by the supply, and there was n ready market, for all coal won. It was a :rreat factor in British trade, for it, supplied outward cargo for shipping, and thus assisted to keep down freights. Through Hie uncertainly of the output during recent yeArSi «Utd the nuicidul policy of those

engaged in thr industry, much of the trade has been diverted, and now that there is a genuine desire to produce, it is found that the demand has gone, and, not only so, but other industries are vitally affected and the whole trade of the nation has received a great setback. During the recent big strike in Britain it was contended by certain men, who claimed to speak with the authority of recognised leaders, that It was not what the industry could pay, but the demands of the men, that must regulate remuneration —that the lack of supply and demand could be ignored. By a system of subsidies it was sought to give effect to this doctrine, but the stern logic of facts has proved its fallacy; and we have now full bins of coal won at a price which precludes its consumption in remunerative industry and the present gloomy outlook is the result. It would perhaps be wrong to contend that this is the sole reason for the slump, but undoubtedly it is a large contributing factor, and it is reflected even in this Dominion by the heavy charges which have to be imposed in order to make transport remunerative. In the House of Representatives on Tuesday Mr McLeod stated that the outlook for the sheepfarmers was the reverse of bright, as they were unable to shoulder the heavy charges which accrue between the farm and the market; and there is a disposition in some quarters to add to these charges instead of reducing them. The shipping companies state that they cannot reduce freights, as to do so would mean running steamers at a loss, and an increasing number of boats are being laid .up and their erstwhile crews added to the ranks of the unemployed. Trie fact that the value of tonnage shows a stupendous drop must be accepted as evidence that the profits of the ship owners are not exorbitant, even at the high freights charged. It is satisfactory to gather from apparently well-authenticated sources that there is a disposition amongst the rank and flic to admit that the practical must take precedence over the theoretical, that revolutionary doctrines which a while ago were hailed as forerunners of the millenium are now being renounced, and that sane counsels once more hold sway. This is undoubtedly the prelude to better things; but it will take time to recover the ground we have lost, and the process of re-winning it may prove both lengthy and laborious.