Our Adverse Trade Balance MORE EXPORTS NEEDED.
IT is imiiossible to study the monthly figures of our foreign trade without being concerned with regard to the growing excess of Imports over Exports. It is perfectly true that the general turnover of trade has increased greatly, nd it is also true that one explanation of the expansion in imports is to be found in the greater activity of home trade and in the increased spending power of the Com- munity. Incidentally, however, it inust. be remembered that in turn the increased activity of home trade and the expansion in spending power are not unconnected with the temporary factor of Government expenditure on the Defence Programme.
- Moreover, it has also to be remembered that in the matter of increased turnover, higher prices of commodi- ties are now playing an important part, and the latest figures of our Trade Returns for the month of November afford a striking example of what is taking place. In the case, for example, of our imports of wheat for the month, we actually received in quantity about half a million cwts. less, but the value increased by £900,000. Of course, we may obtain some comfort from the fact that the, countries exporting the wheat gain more profit, but we must not press fluit comfort ton far when it becomes a question of this country, which depends upon its exports of goods and services to pay for necessary imports, being in the position of having a heavy visible adverse trade balance.
EXCESS OF IMPORTS.
For the first eleven months of the present year the total value of our Imports was no less than 096,000,000, against which the total Exports amounted to only £455,000,000, thus giving an excess of Imports over Exports of 1311,000,000, which is an increase of 169,000,000 over the same period of last year. As against this heavy visible adverse balance can, of course, be set a considerable amount for our invisible Exports in the shape of interest on the sums lent to foreign countries and of freight charges and other services rendered. Even so, 'however, it looks, as. though. the balance. of trade must be against us, and in this connexion be it remem- bered that -the pound is 'a 'depreciated currency in terms of gold and that, by reason 'of our being no longer on the gold standard, adverse trade balances are no longer reflected faithfully in exchange movements as they were
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