Evening star., 1925-10-10
ECONOMIC EXPERTS CALL BRITISH
TRADE PICTURE FAR TOO GLOOMY
Debts and Taxes Reduced in Spite of Trying Cond
tions-Imports and Exports Show Very
Steady Recovery-The Outlook.

During the five years which nave
elapsed since 1921 there has been
steady increase in the volume OF
British business. Even in 1920, when
postwar business activity was at its
! height. the volume of business being
transacted was not as large as that
which was being transacted on the
average in the three years which pre-
| ceded the war For instance, the
volume of imports in 1920 was S8.4
per cent of that handled in 1918. The
| severity of the crisis Is evidenced by
the fact that the volume OF 1921 was
only 74.3 per cent of the pre-War
status. but since then there has been
a steady increase in the volume OF
imports to 100 per cent of the pre-
war status in the first six months
of 1925.
The same story is true of the volume
of exports. They fell off in marked
way in 1921, but have steadily re-
covered year by year, until in the
first six months of 1925 they were 81
per cent of the figure for 1913, as COM
pared with less than so per cent In
the year 1921. The tonnage of freight
handled by the British railroads tells
the same story.
Coal Reveals Better Times.
Coal enters into every activity Of a
nation: 1t Is required for warmth, 1t
is required for power. and in the
form of coke it is absolutely necessary
for the production. of iron. Therefore
the coal consumption of country may
be fairly taken as an indicator OF the
country prosperity, at any rate OF
the volume of business, and of the
purchasing power of the people. The
record in regard to coal consumption
in Great Britain is that following q.
consumption of 95.6 per cent of that
of 1913 in 1920. There was drop to
663 per ctHt in 1921. followed by a
recovery to S6.6 per cent in 1922. to
94.4 per cent in 1923 and 97.6 per cent
in 1924.
1t s true that there has been some
action in the current year 1925 and
on the, part of certain English econ
omists there Has been q. disposition to
attribute this to the resumption OF
specie payments, but this contention
seems to be wrong, because the de-
cline in prices. upon which they large
ly base their argument, has been con-
clusively shown In recent study OF
the question made by the Westmin-
ster Bank Of London to be world
wide situat ton, and the very fact OF
this worldwide decline in prices Is in
itself hopeful, because it is an indica-
tlOn lndl ln6 WOIlO iid at idSt SdNhcu
new level of gold prices, and that
from now on the currency situation
may be largely eliminated from the
conclusions of business men.
In conclusion, Bankers Trust Co.
notes that the resumption of specie
payments in Great Britain, in a way,
has been a natural process. Year by
year the credit structure, that is to
say the volume of currency and bank
| Il LII Ie, ~ 4 n
by little without any great break or
crisis, and the resumption of specie
payments this year was, therefore, not
something which was forced upon the
! nation by the banking interests or by
! Mr.. Churchill. but was something
which the conditions inherently made
natural and necessary.
The ground has been cleared for ac-
ton, the situation for British indus
try now seems to be hopeful. There
are difficulties still to be overcome
that of an adjustment with labor not
being the least of these, but it seems
reasonable to expect that from now
m the situation will steadily jnnprove