INDUSTRY AND TRADE [To the Editor of the SPECTATOR.] SIR,—Re
your issue of November 16th, " Why so few British cars are sold on the Continent." I can follow the reasoning of your correspondent up to the point where he confines his remarks to his limited experience, but, where he bases a general condemnation of British manufacturers' methods, in the export trade, upon the same premises, I cannot follow him. He thinks that British car manufacturers should have their goods " on the doorstep " of each prospective purchaser in Spain. Every retail purchaser, in every part of the world, would like the same thing, not only with regard to cars (which, after all, are an industry that has been built up under artificial conditions, and not representative of our staple industries) but with regard to all our goods which he wants.
The principles of British trade have been constant for many decades, and it is upon these principles that this great export trade has been built. If the principles have altered I should be glad to know.
By usurping the function of the distributor we should ignore one of these principles, and, incidentally, antagonize our best customers. It is not a business proposition in many industries, and, in any case, we can employ our capital to better advantage in other directions. We recognize the fact that a very large proportion of the export business of the world is indented through London indent merchants (not only our business, but that of foreign countries with each other). Why this is so, Mr. Editor, you could explain probably better than anyone else, but I believe that one reason is that London
is relatively a free port, and another that it is the world's financial Centre. Also,' sterling on London is the basis for world trade. Another of our principles is to spread our trade in all the markets of the world, in contradistinction to putting too many " eggs in one basket," and because the British manufacturer is welcome to do -his business everywhere that he likes to try. Many another national, on the other hand (the German for instance), is persona non grata in some countries, and is, therefore, perforce compelled to concentrate his efforts upon those markets where he is accepted.—I am, [The Spectator has long emphasized the fact that the prin- ciples which were the basis of our export trade in the nine- teenth" century are no longer sufficient to maintain it—far less to expand it. Entirely new types of economic organiza- tion are appearing over the whole world. The old order is changing, and unless Great Britain also changes she will be left still further behind than she has already fallen. We suggest that our correspondent, and any others who may share his views, should read carefully the Interim Report on British Marketing Overseas prepared by the Education for Sales- manship Committee.
We must, however, correct one misapprehension. We are not urging manufacturers to usurp the function of distributors, but to co-operate intelligently with the latter in giving that " service " which is the best " selling-point " of our compe- titors. This co-operation may take the form of vertical trustification, or it may not. It is not usurpation.—ED. Spectator.]
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