countries know, there is an increased number of goods included in the free list. For the rest we are trying to get the maximum number of goods moved on to List C, which, as anybody engaged in export trade knows, is a list which means export under license to any destination, List B being goods exported to points within the British Empire.

There is one especially important point in connection with the export trade which is really a great difficulty-that is, our reexport trade, the entrepôt trade-which London found so profitable in the days before the war. Our policy is to do all that we can now to get the entrepôt trade going and to give it all the facilities that possibly can be afforded to it consistently with interallied agreements. For instance, quite a considerable portion of the entrepôt trade was directed finally to the distribution of goods in the territories of what are now the northern blockaded neutrals. Clearly, in connection with that, we must observe the allied arrangements which govern the export of goods to those countries; but apart from that and apart from considerations of that nature the greatest possible freedom that can be given is being given, and assistance is being given, to the reestablishment of this entrepôt and reexport trade. That covers, in brief, a statement of the lines of policy which are being followed with regard to our foreign trade.

About the first of April, the work of the War Trade Department was transferred to the Board of Trade, which set up an Export License Department for the purpose.

From the beginning of the armistice period there have been complaints as to export restrictions. At first there was a fear that the country was short of stocks of manufactured goods, but this was soon dispelled, and manufacturers made vigorous complaints of the continuance of the restrictions on exports to the neutral European countries contiguous to the Central Powers. At a meeting held in London on March 20 under the auspices of the National Produce Traders' League and at the annual meeting of the Association of Chambers of Commerce held on April 16 vigorous protests were made on this score; and it was declared that in Manchester alone there were more than £10,000,000 worth of goods, most of which had been paid for, awaiting shipment to the Scandinavian countries and Switzerland. April 24, 1919, quantitative restrictions on exports to the northern neutral countries and Switzerland were removed on all commodities other than war material; on May 1 the Statutory List was withdrawn and in October it was abolished. This does not mean that Government control was removed, however, for licenses to the European neutrals bordering on the Central Powers were issuable only on consignments to certain specified bodies in those countries. In the case of other countries with which the exchange relations are adverse to Great Britain, it has also been the policy of the Board of Trade to discourage applications for export licenses.

Following the ratification of the treaty with Germany the blockade was raised, and under date of July 12, 1919, the Board of Trade issued a general license to authorize the resumption of business with Germans. Corresponding relaxations were made in the restrictions on exports to contiguous countries, and further relaxations will follow as peaceful conditions are restored throughout Europe. It is not to be expected, however, that the products of industries which have received Government subsidies will be allowed to be freely exported until it appears that domestic needs have been fully met. Following the removal of restrictions, the volume of exports has increased; but so active has been the home demand that the President of the Board of Trade has complained that manufacturers are not giving adequate attention to maintaining contact with foreign markets to which they must cater upon the return of normal conditions.

CAPACITY OF THE FOREIGN MARKET.

The purchasing power of the world has been reduced as a result of the war, and there is certain to be less foreign trade in the aggregate for some years to come. Moreover, under stimulus of war, the movement for national self-sufficiency has been accelerated and many countries now are beginning to produce manufactured goods that they formerly imported. In general, trade routes have been disturbed, and countries that have been fully occupied in warfare have lost touch with many of their old markets.

Western Europe has been Great Britain's best export market; but there is now less capital, less man power, less food, and less productive capacity generally in that part of the world. Public debts have risen to unprecedented figures, taxation is burdensome, and the state of credit is reflected in the adverse rates of exchange on London and New York. The need for foreign manufactures is enormous, but until the economic condition of the world is again stabilized, western Europe may be expected to attract foreign investments in preference to foreign goods.

Great Britain is secure in its trade with the outlying parts of the Empire; and it stands to gain through the breaking off of German trade connections throughout the Dominions and throughout the world. A larger volume of exports to the United States is also to be expected. In China, Japan is becoming a stronger competitor. In Latin America, Germany has lost ground, and the two great rivals are Great Britain and the United States, each with certain advantages and disadvantages of its own.

EXPORT COAL.

Before the war British shipping was conducted on a basis that was exceedingly favorable to the placing of the products of British industry in the markets of the world. Inward-bound vessels brought cargoes of foodstuffs and raw materials, and outward-bound vessels carried finished products of high value and small bulk. Full cargoes on outward voyages were made possible by exporting coal, and full cargoes both ways mean low shipping rates. Low shipping rates in turn made it possible to sell British goods in distant lands at attractive prices. Moreover, British coal was actively sought by many countries. With the coal they got British manufactured products; in exchange they sent to Great Britain foodstuffs and raw materials. Coal represented 10 per cent of the value of British exports and 70 per cent of their bulk.

According to the chairman of the Coal Industry Commission the export coal trade has been unduly favored. "The system of competition between many private colliery owners and exporters to obtain orders frequently prevents the industry getting the full value for the article. * * *In other words there is underselling in the export trade." And Sir Arthur Duckham in his minority report declares: "The system of distribution of coal * * * for export in vogue before the war encouraged the export trade." The desirability of continuing this situation has been emphasized by those who have concerned themselves with the reestablishment of foreign trade.

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Among the departmental committees appointed by the Board of Trade to consider the position of specific trades after the war was

the Commission on the Coal Trade. This committee recognized the importance of coal exports in foreign trade, and in its report, submitted April 25, 1917, declared:

This report is drawn up on the assumption that it is essential in the national interest that the export coal trade, which before the war amounted to about one-fourth of the entire output, should not only be maintained but that every effort should be made to increase it.

If the export of coal were stopped, or even materially reduced, this would result in the throwing out of employment of a vast and varied body of workers, and the loss of a very large amount of wealth to the country, now distributed in wages and in the maintenance of industry. It would have a serious effect on the shipping tonnage carrying on the overseas trade from our ports and would raise the level of homeward freights and increase materially the cost to the country of foodstuffs and raw materials. It would increase the cost of producing the coal required by every industry and householder in the country. It would tend to serious depreciation of railway and dock property and might even cause the harm of some of the companies carrying on these undertakings.

Such considerations appear to the committee to point conclusively to the necessity for a strong policy being followed in developing the export coal trade as vital to the economic interests of the nation.

It is important, therefore, to consider the present situation and the outlook. In 1913, the coal exports amounted to 73,400,000 tons, excluding bunkers, coke, and "patent fuel." About 85 per cent of this coal was shipped to European destinations. Most of the latter was shipped in British vessels, and much of it was sent to coaling stations where it served directly the interests of the British carrying trade. Somewhat less than half of the coal shipped to all destinations was carried in British vessels.

Outside of Europe the greatest importers of British coal were the South American countries, particularly Argentina, Brazil, and Uruguay; but during the war this trade fell off, while exports of American coal to those markets increased. In 1916, American exports to South America were in excess of British exports, and this supremacy was maintained despite the entrance of the United States into the war. American coal is now also making its way into European markets, and the demand is increasing.

To regain its pre-war rank as a coal-exporting country, Great Britain must produce in sufficient quantity and sell at a price that will attract buyers. But it is estimated by the Board of Trade that in the year beginning July 1, 1919, the amount of coal available for export will be 23,000,000 tons, or less than one-third the 1913 figure, and less than two-thirds of the exports for the year ended June, 1919, while the average price will be 35s. This will tend to reduce still further the exports of coal to South America and to other distant parts of the world. The price of American coal at Atlantic ports is 20s. to 25s. In European markets it depends largely upon shipping rates (which are now from $22.50 to $31 per ton). But whatever the price, the demands are large, because of the fact that Europe's coal production is estimated to be 35 per cent below normal, and this is a condition that will require much time to remedy. The effect of this American invasion of markets long controlled by British interests can not but be detrimental to British industry. Hence the need of British industry for the increased production of coal-something that for the present and the immediate future can hardly be brought about.

INDUSTRIAL EXHIBITIONS.

A MEASURE OF INDUSTRIAL PROGRESS.

It is doubtful whether the best-informed person knows to what extent the industries of Great Britain are prepared to reassert themselves as factors in world trade. The evidence is fragmentary and scattered, and more or less conflicting. This uncertainty is likely to be dispelled early in 1920, when three great industrial fairs will be held one at London, another at Glasgow, and the third at Birmingham. There have already been five fairs at London and three at Glasgow; but only selected industries were allowed to participate, and the exhibitors could demonstrate only what they had been able to produce under war restrictions. Now that the war is over and industrial activities are less hampered, it will be possible for practically all of the leading industries of the country to show to what extent they are prepared to meet the demands of both home and foreign markets.

FOREIGN-SAMPLE DISPLAYS.

The movement that led up to these fairs had its beginning almost immediately after the outbreak of the war. Early in September, 1914, the Board of Trade announced that its commercial intelligence branch would open a sample room in London for exhibiting" samples of German and Austrian or Hungarian goods or materials which have competed with British products at home or abroad, especially those which are necessary for the continuance of British manufacture, but which it is now impossible to obtain from their previous sources. To this exhibition British firms were asked to contribute such samples as they had in stock.

While the declared purpose of this display was to assist manufacturers to provide certain essential articles no longer obtainable from abroad, the importance of a study of samples as an aid to the capture of enemy trade throughout the world was not lost sight of. The whole British Empire was therefore combed for samples of enemy-made goods, and these were assembled in London. Some of them were also exhibited in Birmingham and Sheffield. For the guidance of manufacturers desirous of copying these articles, a descriptive report was prepared.

These samples were on view at London during the first year of the war. During the fall of 1915 and the first half of 1916 they were taken to the provincial cities of England, to Glasgow, and to Dublin; and in the fall of 1916 they were shown in Canada. There are now in the office of the Board of Trade more than 15,000 of these samples available for the inspection of British manufacturers or for more detailed examination in their own factories. These represent nearly a hundred trades or industries, and have been recovered from a wide range of oversea markets. They constitute a distinct asset at the disposal of British industry in its attempt to "capture enemy trade."

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In March, 1915, the Board of Trade promoted a three-day "Exhibition of German and Austrian articles typifying successful design," comprising some 1,500 samples of modern German industrial art applied to trades in which Anglo-German competition had been most keen. The purpose, in official words, was:

1. To facilitate a study of the methods whereby Germany has, in coordinating education, production, and distribution, built up so successfully in a few years this new and important branch of its commerce.

2. To demonstrate that this result has been achieved in fact at the expense of British industries, and, further, that the type of work successfully produced in Germany has derived its inspiration largely from British inventiveness, which at home has not always received similar encouragement and opportunity.

3. To stimulate cooperation between the manufacturer and the designer for their mutual benefit, and thus to encourage in this country the active competition and enterprise in the matter of design which have become a vital part of Germany's commercial life.

CATALOGUE LIBRARY.

As a part of the campaign against enemy trade, steps were taken at the very beginning of the war to assemble a library of German and Austrian trade catalogues. These catalogues, like the samples, were obtained from scattered sources through the cooperation of British firms and foreign-trade representatives. There are now 9,500 specimens in the collection, which has been carefully indexed.

Catalogues and samples are kept in adjoining rooms, so that they may be used to best advantage; and, like the samples, the catalogues may be borrowed for detailed examination.

"EXCHANGE MEETINGS."

It was early recognized that manufacturers could be best in put touch with foreign samples and with prospective buyers of such articles by exhibiting samples of particular trades separately. Therefore, in September, 1914, the Board of Trade announced "a series of exchange meetings between buyers desirous of obtaining such goods and United Kingdom manufacturers who may already produce or might be likely to produce similar goods in this country, and British firms were asked to submit samples for inspection.

Eleven such meetings were held during the next seven months, the trades concerned being (1) toys; (2) earthenware, china, and glassware; (3) fancy goods; (4) cutlery, electroplate, and clocks; (5) household utensils; (6) jewelry; (7) electrical apparatus and appliances; (8) cotton piece goods; (9) paper and stationery; (10) hardware; and (11) hand and edge tools.

Prior to these meetings the Board of Trade made inquiries of manufacturers as to their plans to develop new lines, and of firms desirous of purchasing particular articles; and on the basis of the information thus obtained lists of prospective manufacturers and purchasers were prepared and circulated. Two days were given to each meeting; the attendance averaged several hundred; and the number of samples on display ranged from about 1,000 to more than 2,500.

BRITISH INDUSTRIES FAIR, LONDON.

The exchange meetings were suspended in April, 1915, and never resumed. Out of them, however, developed an institution that is to be permanent-the British Industries Fair. In January, 1915, the