Evening star., 1934-09-23
Progress, Made Despite Setbacks, Watched
as Example by Other Nations-Trade
Barriers Prove Greatest Problem.


Former British Secretary of State Tor
Home Affairs.
"HE recovery in the financial and
industrial situation in England
has attracted much attention
i in other lands. How far has
it gone? How has it been
brought about? Was the slump eX-
perienced during the Summer merely
seasonal retardation, or was II an
actual slowing up Of the recovery
process?
Let it be remembered that in Eng
I land the depression has been uneven
from the beginning Some industries
nave felt it very severely, others COM
paratively little The North has been
hard hit; the South has not been SO
seriously affected: in London at the
present time no visitor would observe
any visible signs Of depression. In
the sphere of finance. the English
banking system has never been in
danger; not one bank has closed
its doors.
Since the Summer Of 1890 there
have never been less than 1000. 900
workpeople unemployed. but it is i'm
portant to note that these are not the
same individuals. There have not
been 100000 men and women con-
tinuouSly out of work sinking deeper
and deeper into poverty and distress
and despair The majority are unem-
ployed for a few weeks, possibly for
a few months. many for only a few
Io,-e ;,1ta
while, by the insurance fund to which
they. the employers and the govern
ment have subscribed. and receive no
exceptional assistance from the state.
or those now on the unemployment
register. nearly 100000 have been
unemployed for less than a month.
more than 100000 for less than three
months. Those who have been out of
work for a year or longer have never
totaled as many as 500 .000 This fact
with regard to the unemployment sit
uation in England is not always
understood.
Wholesale Prices Firm.
1t is the workers in the cotton
trade. in coal mining and in ship
building who form the mass of the
chronic unemployed Some branches
OF the IRON and steel and building in
ouStrleS also contribute a very large
number. Before the seasonal Summer
let-down there was some Improvement
even in these trades, and in the rest
the conditions were distinctly better
IN 1888 than in the previous wear
Inc net result was that at the time
the total number of people on the
unemployment register had fallen in
u months from 2,723 900 to 2,224 600
The number of individuals who had
been unemployed for a year or moro
however dld not show any decrease
Inc general level of wholesale prices
uiu not alter appreciably during the
iaSt IL months, nor did the cost of
LVlng. Imports we're considerably re-
ouced; exports. taken as a whole vere
almost stationary. The revenue hoe
oeeh coming IN satisfactorily, While
expenditures are below the estimates
IL was possible in this years budpet
W eHect some reductions of tayation
mere is a spirit of hopefulness IN
the business world. A number of
trades were very active last cn,i,,o.
some factories were working overtime
~ oi ,ne iirSC time for four or five years.
IN May there began slight pause in
the upward trend which continued
through the Summer, but business
men hope that with the arrival of
Autumn the curves will resume their
upward course. No one would vet
say that the country as a whole is en-
Joying prosperity, but the present
tendencies point toward it.
Finances StaI ilized.
The causes of any movement such
as this are both internal and exter-
nal, arising from conditions within
the country and from the trend of
commerce and finance elsewhere
Among the internal causes of the
British Improvement I should be in
cllned to rank first the stabilization
OF the national finances. In 1881
the budget was honestly balanced,
and has kept balanced since then. AS
"a result government credit is high.
AT the same time. because of the
bad trade conditions, there have been
few new openings for secure invest
ment either in private industry at
home or in public or private loans
in other countries. Good government
credit and bad trade together made
possible the great conversion opera
ton of 1882. which reduced the rate
of interest on $4,000 ZOO. 900 of British
government stock by one-third. Money
in consequence has become cheaper.
This has been a great relief both to
the exchequer and to British indus
try.
Secondly. the fall in the value of
sterling has been of help to the export
trades.
Thirdly. with regard to markets
overseas, the recovery in Australia
has helped to restore and create an
important outlet for British trade.
and the prosperity in South Africa
due to the high price of gold has con-
tributed to the same end.
How far the establishment Of pro-