Evening star., 1934-12-30
BY ALBIN z. JOHNSON.


official reports submitted by 73 coun-
tries to the Leagues economic and
financial sections, indicates clearly
that as 1884 draws toward an end
the backbone Of the depression def
nitely has been broken.
In July Of this year the value Of
world trade, in gold dollars, reached
the lowest level since 1929. when the
crisis began. In August there was a
slight increase, perhaps due to sea-
sonal fluctuations. but the value of
the worlds imports was still per
cent and that Of exports, 6 per cent
lower than in August of 1888
The decrease in quantity of goods
exchanged in international trade
which began toward the end of 1929
and continued tc fall spectacularly for
four years, was arrested in 1888 and
since then has increased steadily.
Gold Stocks Unchanged.
In most countries gold stocks in the
hands of central banks, to cover their
note issues. hardly varied between
July and September. The total re-
serves of more than so countries has
increased by nearly $300,000,00
Latest official reports show that Of
s2l0,000,000 (goldD. France took S1O7,-
900 900: the United States of America,
s72,00O,0 900; Switzerland, s33 900 900;
Holland, 100000. Italy lost s13.-
600 900 of her reserves and South
Africa about 100000.
More recent reports, however, indi-
cate that the United States has alb
sorbed the greatest part of new gold
mined, with France coming second
The financial situation in Italy and
Belgium is becoming precarious and
both countries are expected to 20 of
gold" shortly. With the industrial
crisis deepening in France, Switzer-
land and Holland those remaining
gold bloc countries also are expected
to take drastic measures to alleviate
conditions.
Since the beginning Of 1884 four
more states utaly, Honduras, Cuba
and China) have established official
control of foreign exchange Restric-
tions now are in force in more than
80 countries, Nine countries-the
United States of America, Austria,
Argentine. Brazil, Chile, Colombia,
Ecuador, Nicaragua and Yugoslavia-
have modified them considerably dur
ing the year.
Prices Stabilized.
Commodity prices also appear to
have become somewhat stabilized. par
ticularly In the United States. There
has been an appreciable rise recently
in agricultural products-wheat, oats.
barley, cotton, tea, cocoa, coffee, beef,
pork and rubber-on the worlds
markets, but raw silk, hemp, raw wool
and wool worsted. timber, glass, lead
and zinc have fallen steadily during
1884.
The yield on bonds in most coun-
tries, which has been irregular since
the unusually high level of 1881, still
shows tendency to fall.
The seasonal improvement in world
trade, which is always evident during
the Summer and Autumn months. is
revealed by an increase of 8 per cent
Gn gold value) of world trade in Sep
tember last as compared with August.
Nevertheless the charts show that for
73 countries combined the third quar-
ter of 1884, as compared with the
third quarter Of 1888, shows a de-
crease in gold values of to per
cent for imports and per cent for
exports.
The greatest import decline appears
in North American countries-Canada,
the United States and Mexico, where
it was % per cent. Exports of North
America, however, increased l per
cent. indicating that a very heavy IA
vorable balance of trade IS in the
making.
Latins Report Increase.
Latin America countries, grouped,
show per cent increase in imports
and 3 per cent increase in exports
Europe shows a decline in exports of
Z per cent and of imports by per
cent. Asia (Chi1a and Japan largely
reports per cent increase in imports
and ! per cent gain in exports. AT
rica's exports declined 81 per cent,
largely as a result of a cessation of
gold exports, while import figures have
not changed. Oceania (Australia and
New zealand) showed gain of "a per
cent in imports and a loss of 81 per
cent in exports.
A comprehensive survey, which will
be completed shortly, will show, ac-
co-ding to advance reports, that:
"The world economic depression
reached its lowest point in the middle
of 1882. In 1888 the decline of COM
modify prices stopped and the shrink
1884 it has been reversed and pro-
ably. Visible stocks of primary prod
ucts continue to diminish.
During 1888 and 1884 surplus
stocks of raw material which accumu-
lated during the first years of the de-
preston continued to diminish. Pro-
duction of raw materials Gin all coun-
tries of the world excluding Soviet
RUSSIA fell of, while industrial activ-
ity (using up of raw materials) which
had grown less by 81 per cent between
1929 and 1888, increased by IA per
cent in 1888 and continued to gain in
1884 far in excess of the production of
raw materials.
Industrial unemployment in the
world, which reached its highest point
in September, 1882, has diminished
persistently ever since, particularly
during 1888. Industrial activity dur
ing the early months of this year
showed marked improvement in
nearly all countries as compared with
1888, but q slackening appeared dur
ing the second quarter. Tendencies
in the third quarter varied out the
last three months show gains. In Ger
many and Sweden industries gained
"a per cent; in Norway, 16 per cent;
in Canada and Chile, IL per cent; in
Italy. 8 per cent, and Poland, per
cent.
Industrial activity diminished 20
per cent in the United States and 13
per cent in France and the Neither
lands. It is improving in Great Brit
ain, Japan, Austria and Czechoslo-
vakia"
Russian Industry Developed.
In Russia, which now by virtue of
being member Of the League fur