Volume Four - An Era of Change, Uncertainty, Depression & War - Penarth Dock closure in 1936 . . .

Though production and shipments experienced considerable dislocation and reverses during the first world war and in the immediate post-war period, the full effect of that disturbance did not make itself evident until a later period. By 1923, production and exports had virtually re-attained the 1913 level. But new factors came into play. Certainly there were new forms of fuel in competition - oil, petrol and hydro-electricity - and certainly new coal resources had been developed in other countries, but at the same time the world demand for fuel in every form was mounting and the South Wales coalfield could well have held its own but for the effect of international policies.

The Reparations clauses in the Versailles Treaty, under which Germany made coal concessions to France, created a disbalance of trade. Later, in order to obtain foreign credits, coal exports from Germany and Poland were subsidised so that South Wales prices were drastically undercut. Certain countries placed restrictions on coal imports and the ordinary free play of trade under which best Welsh coals had found their markets all over the world was no longer allowed to operate.

Had foreign suppliers followed the accepted lines of ordinary commercial competition, there is little doubt that South Wales coals would have held their own despite the effect on the bunker market of the transition from coal to oil by the Admiralty and a large portion of the maritime service. The position was also affected by the return to the gold standard in 1925 (held in some quarters to have created the conditions which made inevitable the six-month strike of 1926) and the Wall Street collapse of 1931. It was from this latter date that South Wales fell into the slough of depression.

The vicissitudes affecting trade in the inter-war years were most discouraging, but they were resolutely faced and the period of the later 1930's is notable for the fact (not generally realised) that the prospect was improving. Leaders of the colliery owners and of the workmen were working together in the interests of the industry and a substantial restoration of normal competitive trading appeared increasingly possible.

Output and exports in 1938, still represented significant tonnages at 35,290,000 and 16,770,000 tons respectively. But with the coming of the second world war, the plans for restoration of the coal export trade were undermined.