"THE YANKS ARE COMING--OVER HEkE 1"
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By "The Inspector."
AS I WRITE, I must. confess to not being exceptionally clear about the new import condi tions. Previous to Lloyd George's muchanticipated speech of August •18th, it was arranged that a fixed number of vehicles might be imported from America by the •representativesin this country. Machines to the number of 5,000 was the figure mentioned by Sir Auckland Geddes to the deputation of importers which waited on'him a week or two ago, this number to include " trucks.exceeding 30 cwt.," and to be allocated pro rata, amongst importers on the basis of the average importation during 1912-1915. On top of this, comes Lloyd George's new statement as to the general raising of import restrictions in the near future. I imagine that many of -us are left with a very hazy idea as to the amount of American competition that may be anticipated before our awn production reaches such a stage that we can supply all our home requirements.
Production the _Panacea.
Now, although I am laohl enough to declare myself as by no means an out-and-out advocate of the policy that would sacrifice almost anything to huge output, I am, in no sense,. blind to the necessity of greatly increased production if for no other purpose than to enable us.,.to.make a bid for the recovery of our trade in our own Dominions and overseas mar kets. It would be platitudinous at this stage to labour the argument that, if we are to recover our international credit, we must do so either by payment 4)1 gold or its equiiralent in goods sold overseas at a profit. The fact of the matter is, however, that we are not in a position to do either at present., nor, because of the amazingly obtuse attitude of labotir, does there appear to be the. slightest prospect of our doing so in the .near future, until, at any rate, employers are permitted by their employees to get, at least, normal output from their War-increased plants.
Pre-war Outputs not Reached.
There appears to be nothing contradictory in the arguments that output on a huge scale is an undesirable attainment if quality and individuality of pro: duet be sacrificed to mere numbers, and that, on the other hand, quantity and quality hand-in-hand must be attained on a scale at present only appearing in the prospectus sheets of newly-arrived manufacturing concerns, if we are, not definitely and finally to lose our Indian, Australian, S. African, S. American and similar markets for British-built motor vehicles. We have now reached the stage. when we have had not far short of a year to get going again and, with our order-books stuffed to repletion, we are producing in all our leading factories quantities that are, pro rata, greatly below our pre-war factory rate of output. And, sad to state, prices are so high and orders are temporarily so plentiful that many of us are in no degree immensely concerned with the situation. The posit:on at the moment is a highly satisfactory . one from the profit-earning point of view. •But, it is purely an artificial state of affairs, with a depleted world as customer and with all sorts of financial and distributive barriers operating to prevent free competition.
The Seriousness of the American Menace.
We now find the first indications that this state of. affairs cannot last. "The Yanks are coming" in the words of the popular song. And it is the Yanks' product that. really alone matters. If we can 60 organize ourselves that we can afford to tolerate American intensive methods, we can leave the other factories of the world to do their worst. We shall then be on top. But, with the present circumstances ruling, the American menace is a very -very serious one indeed; never has it been more so. It is not so much the question of competitive undercutting as their capacity actually to supply and to deliver • the goods. In India, the Government of which at present enforces an import duty of per -cent. on all motor vehicles, regardless of the country of origin, a great campaign 'has just been inaugurated to press the disposal of trucks of the quality of, for instance, that known as the Hulbert, and great publicity is being given over there to the possibility of early delivery. France has taken over the whole of the American. plant, including mechanical transport that the Yankees left behind them, at a greatly reduced price—a very astute piece of American trade propaganda.
The Home and Overseas Markets .Threatened.
" The Yanks are coming," as they were bound to. But the thing is actually at our doorstep, and unless we immediately get very, very busy, we are going to be ,badly hit, at home and in our own overseas markets. There is no need for panic quantity production. We must prepare our undeniable lead over America in quality, but we must additionally and, at least, produce enough to export sufficient to keep our names in the world which actually exists outside these little islands and their present anxiety and capacity to buy and to pay high prices. For a very little while longer shall We have all the orders we Britishers want here. It is precious little use indulging in endless academic arguments about preferential import and ISO on, unless we have the goods to Send out-of. the country. And, if we have not the goods to send within the next few months, we shall not be asked to send them a little later on. Our home market is not to be compared with that of the U.S.A. Overseas trade is infinitely more important to us than it is to them. But opportunities are useless without out put. B31