It is a comparatively simple matter to find ressons for the present difficulties of mercantile shipbuilding in this country. The primary cause is ike fall in freights, which set in a ear ago and is making owners of all nationalities unwilling to lay out money on new construction. A second factor is the loss to British yards of a very large part of their once prosperous export trade. On September 30 last 142,000 tons, or 16 ver cent. of the total tonnage now being built in this country, was for registration abroad: en December 31, 1929, British yards were working on 622,510 tons for overseas buyers, representing 39.8 per cent. of the total tonnage then under construction, Since 1911, the British percentage of world construction has fallen from 64.5 per cent, to its present level of 326 per cent. Next, tut intimately related to both home ind export orders, comes the question of costs. Owners state, and with special vehemence now, that the shipping outlook has so rapidly deteriorated, that to build has become a luxury they cannot afford. The shipbuilders assert that they sce little hope at the moment of bringing down costs. They base this contention on the fact that, as an assembly indust they have to bear not only their own higher wage end social charges but uso the higher costs of the steel, engineering, electrical paint, ship outfitting and a whole host of other supply trades. There may be a re-Cuction in steel prices next year, but the recent behaviour of commodity and metal prices suggests that the general price level is once more moving upwards.
Text read from the printed page and cleaned; old type leaves the occasional error.