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interests in their alleged efforts to aid would load her further with this commodity. Such loading would undoubtedly give a momen- tary fillip to silver prices, and bring relief and joy to silver pro- ducing groups, but has neither virtue nor merit in solving China's currency problem. There is no lack of silver in China. The lack is one of stability in its value.
Suggestions have been made that the money powers of the world should call a conference with a view to the stabilisation of silver at a fixed and definite ratio to gold, and this suggestion should receive the most serious consideration of those nations which trade with China and those which produce or have silver.
235. The Governor of the Bank of China is in touch with the International Chamber of Commerce. He has called the Inter- national Chamber's attention to the serious handicap imposed on China's external trade by the continued depreciation of silver, and has stated that the plans for the consolidation of Chinese foreign debts have been considerably disturbed thereby. He asks for an early international conference to consider the question. The response to this request has been favourable, and as a preliminary the Executive Committees of the International Chamber of Com- merce adopted a resolution calling on all National Committees and members to urge their Governments to take the silver problem into their early consideration in consultation with other Govern- ments, including the Chinese Government.
236. Great Britain has so large an interest in China's trade that we trust she may be among the foremost to take action with a view to ascertaining what can be done by international agree- ment to raise the value of silver. We should be among the first to endeavour to arrive at an international understanding for re- establishing silver as a standard basis of credit. The flow of gold to America and France, and the sales of silver by India are all factors in a serious situation. The probable shortage of gold in the near future and the over-production of silver at the present time have raised issues that cannot be ignored. There would appear to be no relief from present world conditions unless and until the fundamental matter of currency receives consideration. Upon some solution of this problem hangs the future of inter- national commerce.
CHAPTER X.
PROMOTION OF BRITISH EXPORT TRADE.
TRADE COMMISSIONERS.
237. That our factories should be fully and profitably employed, necessitates the production by them of goods saleable in the world's markets. To secure this, more knowledge is essential than British industry now possesses, and this knowledge must be based on
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expert investigation. An essential to success is that British industry should be sufficiently flexible to adapt its production to the world's needs of to-day and to-morrow rather than adhere to fashions and qualities the world has outgrown and, indeed, is unwilling and often unable to purchase. It might prove difficult for industry alone to undertake the cost of the pioneer work and investigation which are necessary for the attainment of a larger share of world trade. It is here that the State should, and can, perform a function additional to that recommended in the next paragraph to be performed by industry itself. The Department of Overseas Trade has within the limits of its home and overseas staffs performed an excellent service to British industry, but its activities have been far too restricted as compared, for instance, with the generous provision made for their overseas trade and intelligence services by the United States and Canada.
238. Commercial Diplomatic Officers in foreign countries render valuable assistance to British export trade both by the advice they give on economic questions to the Ambassadors or Ministers of whose staff they are members, and by the help they give directly to British firms.
The amount of work which they can perform, however, is naturally limited. So much time and energy is absorbed by answering specific enquiries by British firms, furnishing reports on market possibilities, and studying the larger economic problems of their countries that they are not always able to give as much time to maintaining those personal contacts with the local business community as the needs of British trade require or as they would desire. This side of their activities we consider to be of great importance and urge that such assistance be given them as will enable them to devote more time to it. Further, they cannot be expected to be experts in all the various branches of trade with which they have to deal. At the present crisis in our export trade, the markets for specific industries require prompt and special investigation. We therefore recommend that H.M. Government should urgently consider the appointment of specialists or experts, selected with the aid of industry itself, in those countries which are undeveloped or in which British trade shows the greatest decline. The members of this service, who would not be estab- lished Civil Servants, should have complete freedom of action, but they should report to industry through the Department of Overseas Trade. The value of this new service would depend mainly on the quality, ability and aggressiveness of the men engaged in it, and only first-class men should therefore be selected. first-class men are to be obtained, adequate remuneration must be given, for in this class of work one good man is worth more than any number of mediocrities.
If
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