Evening star., 1932-11-28
more j. 5. PLANTS
IN BRITAIN SEEN
Chaplin Report Notes Policy
| Changes Attracting Inter-
est of Manufacturers.

The possibility of stronger Ameri-
can branch factory movement in Great
Britain was indicated today by Secre-
tary of Commerce Chaplin in his annual
report to President Hoover. because, he
said, of the interest aroused among
American manufacturers by the change
In the economic situation in that coun-
try.
Mr.. Chaplin compiled the report be-
fore final action was taken on the trade
preference agreements reached at the
Ottawa Imperial Conference and he in
formed the President that the branch
factory movement, of course, would de-
pend on whether the agreements would
te ratified
The British Parliament early this
month approved the trade agreements,
particularly those barriers against i'm
portation of American automobiles.
The duties imposed, according to a
Commerce Department estimate, will
cost this country's foreign trade with
England S133 100000 annually, based
on the value of the 1881 exports.
Looking forward to this approval.
Mr.. Chaplin asserted that the radical
change in the British tariff policy and
the depreciation of the sterling have
served to attract attention to England
Us a location for branch factories"
Precedent Established.
Writing his report from notes COM
piled by his predecessor, Robert P. La
mont, who resigned from the Hoover
cabinet last August, Mr.. Chaplin estab-
ished precedent by bringing the de
scription of this country's economic
situation up to November /. instead Of
the customary movement Of conflnlng
Fa anf~ 4< rr,;tt +ln y,nYinH
Continuing on the branch factory
movement. the new cabinet officer
pointed out that "in spite of the great
interest aroused among American in
duStrialists, the European manufac-
/ turers have shown much greater
lreadiness to adjust themselves to the
'hew situation by the actual transfer OF
their industries or the establishment
Of manufacturing branches"
Mr.. Chaplin said the discount on
Canadian exchange has introduced
new element and has added to the diff
ficulties of marketing American
products.
He explained that the number of
branch factories actually established in
Canada during the year has probably
increased in comparison with the pre-
ceding year.
In January, 1881, former Secretary
Lamont informed President Hoover in
q report on the growth of American
branch factories abroad, that the
larges; manufacturing investment in
any one country, although surpassed by
Europe as whole, was in Canada,
where there was 524 establishments,
representing an aggregate investment
OF S540, ,593, ,0G0
The Lamont report revealed that
there were 453 such establishments in
Europe with total investment of
$628, ,895. COO. Great Britain had 40 per
cent or S268, 189 900, of the total invest
ment, which operated 169 factories.
Germany was second with rs factories
representing an investment of $780,
100000. France was third with 86 fac
tories with soo,ooO,o00 investment, fol-
lowed by Belgium and the Netherlands.
Favorable prospects for improvement
OF commodity prices were seen by Sec
retary Chaplin at the beginning Of the
current fiscal year.
Although commodity prices con-
tinued to fall shartly during the fiscal
year" the Commerce Secretary said,
''on June 80 last the prospects for some
change in the trend were brighter than
at any time in several years.
Farm Produce Prices Rise.
Surplus supplies in many branches
of industry had been reduced and
more active demand was being reflected
in stiffening of prices. Rises from
May 80 to the end of June, 1892, in
prices Of meats and several other do
mestic farm products were sharp
For the first time since 1929, Chaplin
said, he also saw with the end of the
old fiscal year, some signs of clearing
in the foreign situation, while domestic
troubles were being attacked on a wide
front in an effort to halt the decline
and bring about some measures of i'm
provement."
The Secretary said some mitigation
IN the seriousness of bank suspensions
was brought about by the organization
of the National Credit Corporation.
Further alienation, he added, came in
the second half of the fiscal year
through establishment of the Recon-
struction Finance Corporation land by
other remedial measures, such as the
GlarS-Staapali art -