consideration the invisible exports for these three years, the apparent "adverse " balance is turned into a favourable but declining balance of exports over imports amounting in 1923 to £153 millions, in 1924 to £63 millions, and in 1925 to £28 millions.

In contrast to Great Britain's trade position most foreign manufacturing countries have shown a tendency during the last few years to increase their exports relatively to their imports. The United States of America maintains a balance of visible exports over imports; France has, during the last three years, turned her "adverse" balance of imports over visible exports into a favourable balance of visible exports over imports. Germany, Italy, and Japan all have "adverse" balances, but their adverse" balances have tended to decrease considerably. All these countries, except Germany, show in their trade statistics an increasing export of manufactures in comparison to their manufactured imports-while Great Britain's ratio of manufactured exports to manufactured imports is diminishing.

United States of America.-The latest American returns are for the year ending June 1925, and the exports for this period may be compared with those for the year ending June 1923. The general trend of U.S.A. manufactured exports is towards a decreased export of semi-manufactured goods and a slowly increasing export of finished manufactures. Foremost among the increases are motor-carsthe export of which during the period under review has nearly doubled-machinery, electrical and other, iron and steel manufactures-such as tin plates, sheets and plateswrought pipes and fittings, and dyed and printed cotton piece goods. Decreases, on the other hand, include such articles as basic iron and steel products, steel rails, wire and nails, leather, and unbleached cotton piece goods. In spite of the immense annual increases in the manufacturing output of the United States, little effort has as yet been made, in view of the elastic home market, to develop a large export trade. When it is realized that the United States produces more than 40 million tons of steel annually and only exports 5 per cent. of this total, her immense potential competitive power will be realized. An additional export of 5 per cent. of her production would be more than sufficient to meet the whole of the iron and steel imports of Empire countries which at present come from Great Britain and would nearly meet the total Empire demands.

France.-French statistics of imports for the first seven months of 1925, compared with the same period in 1923,

show a steady increase in all the main branches of manufacture. After making full allowance for the exchange, we find that the value of French exports of manufactures increased in this period from £119 millions to £160 millions. The most valuable item-silk and silk manufacturesshowed an increased quantity exported amounting to over 30 per cent. Other increases are to be found in glass-ware and pottery-an increase of over 60 per cent.; iron and steel blooms and bars-an increase of 150 per cent. ; machinery-an increase of over 25 per cent. ; cotton manufactures-an increase of 38 per cent. As in the case

of the United States, France is making great strides in the export of motor-cars. Between these two periods the export of French motors more than doubled.

Germany.-Monetary conditions have caused German export trade to be very stagnant, but the latest returns for the first seven months of 1925, compared with those for the same period in 1923, show definite signs of progress. An increased coal export-largely due to the restoration of the Ruhr coalfields-from nearly 700,000 tons for seven months of 1923 to 9 million tons (apart from reparation deliveries) for the seven months of 1925, accounts for a considerable proportion of the revival, but increases have also been registered in iron and steel-the exports of which nearly doubled--in machinery, chemicals, cement, glass and glass-ware, and in electrical apparatus. The cement exports were doubled, and a number of chemicals show large increases amounting in the case of coal-tar products to a trebled export.

Germany has, as yet, failed to re-establish her exports of textile manufactures.

Italy.-Italy has, since the war, been one of the most prosperous industrial countries in Europe. Her home manufactures and general exports have increased with amazing rapidity, and she has become for the first time a serious competitor of Great Britain, especially in South American markets. Her textile exports show the most noteworthy expansion. The latest figures for the first six months of 1925 show an export of woollen manufactures nearly treble that for the same period in 1923, an export of silk manufactures nearly double, and an export of cotton manufactures with a 56 per cent. increase.

It is reported that the 1925 production in Italy of artificial silk is expected to be 15 million kilos as against 8 million kilos in 1924 and 4 million kilos in 1923. More than half the Italian production, it is said, is exported.

Another item of export which, in view of developments already noted in other countries, should be mentioned is that of motor-cars. The number of Italian touring cars and commercial cars exported for the first six months of 1925 was 15,205, in comparison with an export of 5,862 cars during the same period in 1923.

Belgian trade figures show a substantial increase of exports, especially in iron and steel, linen, woollen and cottons, china and earthenware, and railway vehicles.

Czecho-Slovakia, a country rapidly becoming an important industrial rival, also recorded substantially increased exports of manufactures.

Japan, though she received a severe check through the earthquake, is now making fresh progress in her exports.

In this brief survey of industrial exports from foreign countries it has not been possible to take into consideration the many factors that influence the situation. Perhaps the most important of these are of monetary origin. Depreciated exchanges have, for instance, materially assisted the French and Italian export trade. It seems clear, however, that the British trade in manufactured exports is not developing on the same scale as that of many other countries. It cannot, therefore, still be maintained that the main cause of depression in British industry is world impoverishment, though the poverty of some countries undoubtedly accounts for the fall in exports to Europe. It must, on the other hand, be obvious to those making a study of the trade conditions on the Continent that revival there will mean an increased output of manufactured articles in Europe itself rather than an increased demand for manufactures from abroad. If Europe is not likely to offer any progressive opening for British goods, where must Great Britain look for the wider markets which are becoming more insistently necessary with each succeeding year?

For the average of the ten years, 1904 to 1913, the Empire share of British exports was 34.7 per cent. of the total; while in 1925 (nine months) it was 43.5 per cent. Taking manufactured exports alone, the Empire share for the annual average 1904-13 was 38.6 per cent., and in 1924 was 46 per cent.

These figures are striking, and it might have been thought that they would have attracted the attention of the Chairmen of the great Banks when they were preparing their annual statements on the state of trade. During the last three years substantial progress has been made in many branches of manufactured exports, and it is particu

larly interesting to find how large an influence Empire markets have had upon those classes of British exports which have recorded marked improvements.

While as a whole the iron and steel industry is depressed, there are not wanting bright spots in this most essential key industry. The Empire share of the total exports of iron and steel was 51 per cent. in 1924, or £38 millions out of a total value of £74 millions. In comparison to the 1923 iron and steel exports, Empire purchases had increased by over £1 million, while foreign purchases showed a decline of £3 millions. The Empire share in fully finished goods was, however, much larger. For instance, in galvanized sheets the total export in 1924 amounted to £13 millions. This total represents an increased export amounting to a million pounds over the 1923 figure, and the whole of this extra million was accounted for by Empire purchases. The Empire share of the total 1924 exports was 66 per cent. Wrought tubes, the export of which in 1924 amounted to £4 millions, owe 64 per cent. of their oversea sales to the Empire.

In the case of electrical machinery, the Empire share in 1924 was 71.5 per cent., an increase of 6 per cent. on the previous year's share. The increased exports were thus mainly due to the demands of Empire markets. The Empire purchase of agricultural machinery amounted in 1923 to 49 per cent. of the total, and in 1924 to 52.6 per cent. of the total.

In 1924 British cutlery exports were valued at £1 million, of which 78 per cent. went to Empire countries. The latest returns for 1925 indicate heavy increases in total exports, and India, South Africa, and Australia continue, as in 1924, to be Great Britain's principal customers. Of Britain's implements and tools export in 1924, which amounted to £3 millions, the Empire took over half.

In 1924 the Empire took 47.5 per cent. of the total British exports of cotton piece goods valued at £153 millions. This Empire share represented a £7 millions increased purchase in comparison to the purchase made in 1923, but it did not represent any increased share of the total exports. The 1925 figures indicate a continued progress on these lines.

The British exports of artificial silk manufactures show yearly progress, and the Empire is maintaining its share of the increasing export trade. In 1924 the Empire took 71 per cent. of the total export.

The exports of British manufactures of apparel (except

boots and shoes) amounted in 1923 to £22 millions, and in 1924 to £24 millions. In this same period the Empire share increased from 69 per cent. to 71 per cent. of the total. The item boots and shoes shows not only an increased export, and an exceedingly high percentage of the total taken by the Empire, but it also shows the Empire share is steadily increasing. In 1924 the Empire took 87.5 per cent. of British boots and shoes exported, specially heavy purchases being made by South Africa and New Zealand-South Africa alone buying more than all foreign countries put together.

One of the most remarkable instances of the importance of the Empire in its relation to British manufactured exports is to be found in the export figures for British motor-cars. The question of the ability of the British cars to meet American competition is one which has lately attracted considerable attention. It does not appear, however, that many people have realized that our motor products are almost exclusively exported to Empire countries. The Empire share in 1924 of the total British exports was as high as 83.5 per cent. In 1923 the total exports were only a little more than half the 1924 total, and the Empire share then was 76.5 per cent. Australia was the country whose purchases have really dominated the export situation. Exports of motor-cars to Australia represented 30 per cent. of the total exports. She bought actually £600,000 worth of cars more than all foreign countries put together.

In 1925 Australia's imports of motor chassis from Great Britain represented 56.5 per cent. of the total British exports.

The substantial increase of preference on British motor chassis announced by the Commonwealth Government to be brought into effect by reducing duties on British chassis and increasing the rates on foreign should greatly improve the position of this British industry in Australia-a country which imports a greater value of motor-cars than any other country in the world.

British paper and stationery exports amounted in 1924 to £9 millions. Purchases made by Empire countries accounted for 71.4 per cent. of this total value. Latest 1925 figures indicate a maintenance of the Empire share. Of British printing paper Australia in 1924 took one-half, and the Empire proportion of the total was 77 per cent.

There are many other instances which could be mentioned to show the value of Empire markets. In the case