Adverting to the title that leads he recital, there Is supporting it a liable document prepared by the league's financial experts. It implies hat the profound and disturbing] ange" that "has overtaken the) yarld's economy during the past wolve months is due to the recession hat began in the United States and vhich extended, less seriously, to the mited Kingdom and France. Though heir analysis is confined to these hree countries, it is Pointed out that riy crisis, beginning in one of inlet industrial centres, risks spread to other countries. ' Four cardinal ints are Inid down:—(1) During he first three months of 1938, world industrial production lost all. the round it had regained in the two previous years, and was about fifteen er cent. below that of 1929; (2) The quantum of world commerce fell o ninety per cent. of the 1920 level: 3) Unemployment is on the increase n most countries; (4) Far from hav-ug to concern itself with the dang.
of nm uncontrolled boom, which was the concern of several of he principal countries twelve months o—"the world finds itself today menaced by a'serlous crisis."
With special regard to the United tates {Lis commented that, from he point of view of intensity and] apidity, the recession in that counry (ust before the recent stock narker rise) was one of the worst ver known,—worse even than during he six months following September 029, In conclusion, the opinion {s pressed and the reasons given that, hough the situation appears menace ug, the crisis Is easier to overcome han that of 1929. Nevertheless the economic outlook is qualified by' verid political unsettlement.
Turning now to another economic hase—the German position—the chief German stocks are now quoted prices lower than the rock-bottom ates of last year, Havas News Agency states that "fears of war, hich in German opinion have deve-oped abroad as a result of the gigan-Reich military manceuvres now cing held in Germany, are added'
the influence of other aspects of he International political situation, n affecting the Bourse. Moreover, t is noted particularly that Ger-narly's foreign commerce situation is ery unfavourable, Tu Japan, there 1s afoot a plan for} he mobilization of the agencies of reduction, distribution and consump-ion, These measures must have: heir repercussions on general world economy. Some of them are as follows:—Steps taken to check a rise prices of commodities to maintain the current exchange rate to secure supplies of materials for munitions, promotion of export trade, and safeguarding of the economic life of the! nation by ing prices. There is be a thorough curtailment of sumption. of general commodities: restriction in the consumption of imported goods; increase in the use of substitutes for imported goods. Exports are to be strengthened by Linking imports of raw materials with schedules for the export of manufactured goods, and by preventing! consumption of raw materials intend ed for export goods. There is to be! Increased production of principal] materials, particularly "mineral ores. Compulsory restrictions are to be enforced on the use and consumption of steel, pig iron, gold, platinum, Zine, tin, nickel, aluminium, asbestos, raw' cation, wool, pulp, paper, hemp leather, hides, lumber, heavy oil, volatile off, raw rubber, industrial salt, benzol, nitric acid, soda, carbo-_ Ve acid, brass, rock-phosphate and! other products.
Text read from the printed page and cleaned; old type leaves the occasional error.