Evening star., 1934-12-30
LEAGUE REPORTS SHOW
SLUMP BACKBONE BROKEN
Value of World Trade i'm Gold Dollars
Reached Lowest Since 1929
in July, 1894.

his expansion is continuing although
at somewhat slower rate, under the
second Five-Year Plan. In Japan
also industrial expansion has been
rapid since the middle of 1882.
Great Britain today has the largest
public debt" Of any country, in COM
parison with gold reserve held. The
United States comes second and
France third. The United States still
holds the largest gold reserve, France
is second and England third. Ma
tional debts per capita today are New
Zealand, first; Australia, second, then
Great Britain and France The United
States stands sixth and Germany, de-
spite her alleged tragic situation only
eighth. In comparison with her gold
reserve Germany ranks seventh in
public debt and Switzerland eleventh.
Latest authoritative statistics show
that production of raw materials as a
whole is still about 18 per cent below
the l925-1929 averages, i. e. nom
agricultural raw materials. Produce
ton of agricultural raw materials
foodstuffs) remained almost sta
tionary between 1929 and 1888. But
during last year because of the demand
by industry, the production of non
agricultural raw materials jumped IL
per cent while that of non-foodstuff
agricultural raw materials advanced
4 per cent. The position of the farmer
and peasant, however, is now improv-
ing IN most parts of the world. Last
Summers drought helped North
American farmers while France. with
two years of bumper crops, is facing
a farm crisis.
Food Trade Falls.
In quantity the international trade
in foodstuffs fell some 16 per cent be-
tween 1929 and 1888, yet production
remained more or less stable indicat-
ing that internal consumption did not
decrease. In many countries, such as
Irish Free State where the British en-
barge prevented expectation, the local
population lived on the fiat of the
land" In Hungary, surrounded by
hostile countries, the situation was
similar. The drift towards nation
alism, with normally importing coun-
tries seeking to stimulate their pro-
duction of foodstuffs, was largely re-
sponsible for the drop in world trade
in agricultural products
There has been much greater fall.
ing of in industries producing "in-
vestment goods" than in industries
which produce commodities for inn
mediate consumption"
While world stocks in industrial raw
materials have tended to fall of since
the middle of 1882, as a result of the
more rapid recovery in manufacturing
than in raw material production, the
stock of cereals, wheat, barley. ETC.,
the demand for which is less elastic,
has remained stationary or increased.
While prices are steadily falling in
gold-standard countries, internal
prices in Great Britain, the United
States and other countries undergo
ing marked currency depreciation, have
failed to rise in proportion to monetary
depreciation. internationally how
ever, variations in the movements Of
price levels are increasing largely as
result of movements in exchange
rates of currencies.
Since 1882 the yield on bonds
British Empire issues-has fallen
steadily and continuously. Canadian,
Swedish, Japanese, American, Bel
gian, Italian and Dutch bonds are
down while Swiss, French and Argen-
tine bonds have been rising irregularly.
Farm Product Rise Greatest.
Summing up the Leagues survey
says:
Some of the major discrepancies in
price structure, which had developed
in the course of the depression, were
less marked during 1888 and. from
unofficial indications, during the pres
ent year. The relation between prices
OF raw materials and those of manu-
factured goods improved, prices for
raw materials having risen. Agricul-
tural products experienced, on the
whole, more marked rise than in
dustrial products, save in the agricul-
tural export countries of Southeastern
Europe; consumption goods improved
in value in terms of investment goods;
retail prices rose considerably less
than wholesale prices; while rents in
many countries declined more than
they had done in previous years."
The big problem before the world
in 1885. if international commerce is
to be restored, is the sterilization Of
national currencies. Today both the
United States and Great Britain can
artif1cially regulate the dollar and
pound sterling; the German mark, to
quote Hjalmar Schacht, president of
the Reichsbank, is in the palm of
his hand; the French and Swiss
francs, backed by heavy gold reserves,
dare not depreciate for fear of what
may happen internally. The Belgian
franc and Italian lira are hanging on
to the gold standard by the skin of
their teeth" and the grace of the Bank
of France.
There is already visible tendency
to abandon the quota" systems of i'm
ports by which various countries reg
ulate their imports in proportion to
their visible exports. Arbitrary re-
straint of trade has proved injurious
rather than beneficial some countries
have found.
Economic liberalism is again in the
ascendency, but whether the shackles
which bind international trade will be
sufficiently loosened during the early
part of 1885 to save the countries Of
the gold bloc remains to be seen.
So far as other countries are con.
cerned, they are, including Great
Britain and the United States, be-
lieved to be well along the road to
recovery.