THE TRADE RETURNS
[To the Editor of the SPECTATOR.]
SIR,—It is most interesting to industrialists and exporters to note comments and theories on the financial and trade outlook, so I am glad to see Mr. Arthur W. Kiddy giving attention to the figures of Trade Returns in connexion with Exchange, and if he would continue his argument by com- paring the favourable Trade Balance of France, coupled with the fall of the franc, and give his views on .the opposite effect in the two countries, it would stimulate consideration of this important question.
My own view is that we are importing too great a quantity of goods in relation to the National Income—producing too little and buying too much—and the problem of unemploy- ment can only be solved by diminution of expenditure on goods which could be produced at home. The publicist can rarely speak with knowledge on industrial prospects, and I fear the great industries of the country do not commence the year with orders of sufficient volume to warrant the hope of increased employment. It must be remembered that the workers in competitive trades labour under a sense of injustice in comparing their wages and conditions with those of the sheltered trades, and the difference calls for rectification.
We can have a happy feeling regarding banking profits until we think of the agricultural workers and engineers—e.g., and also of the great host of those who are under-employed or uncertain of maintenance of employment at insufficient rates of pay. One comes to the conclusion that the gene- rality of French people are better off than we arc, despite the Exchange and the prospect for their currency. Events have proved during the past few years that a debtor country cannot be forced to pay National Debts. It is also obvious that, as the sterling rate improves to the advantage of our purchasing power, we suffer as exporters owing to the auto- matic advance in the price of our production.—I am, Sir, So.,
Milner Field, Bingley, Yorks. Alr..4, ERNEST H. GATES.
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