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on which we are just now beginning slowly to draw as the people themselves realize that only hard work will pull us through. But this is being realized.

Let me refer to some of the more hopeful factors.

We have, with an effort, returned to the gold standard. Many say this was premature and that it has added ten per cent. to the cost of our goods in the world's markets. But the step has been taken and has been, on the whole, successful.

Insurance, apart from marine insurance, is flourishing. Our banks are in a very strong position. We are again lending in Europe and to our oversea Dominions. Quite recently two big German loans that to the Potash Syndicate, and the big Textile Loan-were issued in London, having been taken from under the very noses of American financiers. These two big loans, together with the League of Nations loans to Greece, Hungary, Austria, etc., and our share of the Dawes Loan, were immediately over-subscribed. This is hardly a sign of impending ruin. The same applies to the multitude of rubber, tea and coffee companies which have issued capital. Apart from these latter, the following is a list of issues made just before Christmas, 1925:

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Drapery and General Investment Trust..... £600,000 6 per cent. debenture stock at par.

Drapery and General Investment Trust..... £600,000 7 per cent. prefer

Hungarian Mortgage Bonds....

ence shares at par. £1,000,000 7 per cent. at 93.

All these public issues show that there is plenty of money available in Britain. The embargo on foreign loans has only just been raised and there is still an unofficial embargo which dis

courages too much lending abroad. The following are the capital issues made, excluding direct borrowing by the Government:

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During most of 1925 there was a strict embargo on all foreign loans apart from those guaranteed by the League of Nations. The fact is that Lombard Street still holds its position as an international banking centre in spite of the efforts of Wall Street.

In 1925 the Bankers' Clearing House made clearances of £40,437,119,000, being the highest on record and an increase of £904,255,000 on 1924.

Much play has been made with the subsidy to the coal industry entered into last autumn. Nobody in Britain likes this, but it was deliberately decided upon in order to avoid the great upheaval of a national strike. The coal industry has suffered by the effects of German Reparations coal, one of the blunders of the Peace Treaty, just as our shipping has suffered by the free deliveries of German mercantile tonnage. But this coal subsidy, which may total £30,000,000, is, after all, being spent within the country and is not a dead loss.

With regard to unemployment: one of the worst hit industries apart from coal is the linen industry. But linen is really a luxury and all luxury trades, especially for export, have been hit by the War. Also the depression in the linen industry is partly caused by the changes in fashion, artificial silk largely taking its place for male and female apparel, for example.

It is perfectly true, on the other hand, that there is far too much "water" in many of our large companies, as the result of wartime and "boom" inflations. But much of this is being written off; an outstanding example being the great engineering, shipbuilding and armaments firm of Vickers, which has tackled the problem in a really heroic manner; and other firms are following the same course.

Let me now refer to the actual figures of exports, re-exports and imports on page 200 of the Editor's article. These show that our re-exports and our imports are actually increasing. It is

true our imports are increasing, but these are largely balanced by "invisible exports" such as insurance, shipping freights and loans made to India, South America and the British Colonies. In the first ten months of 1925 we exported £516,406,791 worth of manufactured goods. This total was £33,000,000 above 1923 for the same period, and £3,000,000 above 1924 for the same period. This is not bad for a country that is supposed to be on the verge of ruin. Included in the above are the following items:

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Take the greatest port in Britain, Liverpool. The total of exports and imports for the last four years is as follows:

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It hardly looks as if the grass has yet begun to grow in the streets of Liverpool.

With regard to the much criticized "dole": it has certainly done harm to our work people and this is admitted. But it is an insurance, and the work people themselves contribute, willynilly, to these insurance funds. In spite of its many evils, we can hardly cut it off without a breach of faith, especially as it is not the fault of the majority of the workpeople that they cannot find employment; and again, the money is actually spent in this country. Unemployment is very serious; but there were 200,000 more people engaged in industry on December 11, 1925, than on December 11, 1924. The latest figures I have show a reduction of 25,000 less than the previous week and nearly 67,000 less than a year ago. The actual figures from the Government return are as follows:

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It must be remembered that, in spite of the War, we have a larger population and there are more women in productive employment in England than before the War.

It is said that our people are reluctant to emigrate. This has another side to it. In most of the countries in Europe involved in the War the people seem only too anxious to get abroad, anywhere. That they are not eager to fly from Britain shows that things cannot be so very bad after all. Also I may be permitted to point out that emigrants are not exactly encouraged to go to the United States. Many are not eager to face the ordeal of Ellis Island. Take the case of a British ex-Army officer, Captain Sidney Fortune, who, for the past five years has been on the staff of our War Graves Commission in the Near East. He recently attempted to land in New York to join a brother in Florida, and was refused permission to land. There may of course have been good reasons, but it goes to show that emigration is none too easy in these days.

Taxation is certainly heavy, though as a matter of fact it was reduced by £30,000,000 this year from last year. Government expenditure is being slowly reduced. But it is not so easy to get rid of the hordes of officials that the British Government Departments established in the War. Our expenditure was reduced from £1,195,428,000 in 1920, which may be taken as the first peace year, to £820,115,000 in 1925. Heavy expenditure has led to heavy taxation, but the standard of living of our people has not been unduly depressed, their savings prevented, nor their physique injured. One indication of this is the enormous and persistent growth of the number of motor vehicles licensed in this country. The actual statistics show that in the past four years

the licenses issued have practically doubled in numbers. The official returns are as follows:

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The 1925 figures above include 579,501 motor-cars, 571,552 motorcycles and 224,287 commercial vehicles.

There are now about 600,000 motor-cycles in use in Britain compared with some 200,000 licensed throughout the United States. This hardly looks as if our people are impoverished.

Compare with Germany. A well-known motor manufacturer, a friend of mine, recently proposed to establish a factory for the making of light cars in Germany. After very careful inquiries he was dissuaded by the reports he received from the best sources as to the lack of purchasing power in that country.

Take another test. One of the leading industries in the United States is the production of cinematograph films. Of foreign markets, the British is probably one of the best. In 1924 the number of attendances at cinema theatres in Britain was 1,050,000,000. Last year, 1925, ten thousand new books were published in Britain. The theatres enjoyed good runs when the plays were worth seeing; and, in passing, may I be allowed to observe that I hope the English drama and also the habits of our people will not be judged by the type of so-called British plays recently showing in New York.

Nor are the savings of the people affected unduly. The Savings Bank returns, like the income tax returns, show a continued upward tendency. One of our worst centres of industry, dependent as it is so much on the shipbuilding and engineering trades, both so hard hit, is Glasgow. Nor is it the most sober city in Great Britain, while labor troubles are frequent. The total balance due to depositors in the Glasgow Savings Bank at the present time is £12,566,127. The total funds of the Glasgow Savings Bank are £22,158,014. These figures are the highest in the history of the institution. The increase over last year is £479,502. This Savings Bank aims, primarily, at encouraging

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