Europe's "boom" year was 1928. In the year just closed, German industrial production (heavily canalized in. the direction of re-armaments) was from 25 to 30 per cent greater than in 1938 while in the. three Scandinavian countries—though easing off towards the end-—it ran 40. to 45. por. cent jareater. Inthe United Kingdom (else helped out by re-armaments) it ran about ten per cent. greater; in aly it began about ten per cent, [greater and declined to around "pa (Czechoslovakia was handicapped by {the slump in textiles demand and by the political disturbances and never Idid better than about 90 per cent. of lis 1938 level, while Franco had a fairly disastrous year with industrial activity at least 30 per cent. below beom levels.
The "Munich pact" of September 26 produced the greatest shock to Bur-Jopean business and finance since the Joutbreak of the Great War. It under-imined the prestige of the pound. sterling as a safe "slare of value" and started a panic flow of European funds into' dollars and into gold. JAlthough on paper the apparent [collapse of Czechoslovakia as a. well-[butaneed liberal-capitalist state opened. the way for a formidable German trade drive into South-eastern Europe, the year ended with the Danubian states frantically seeking to escape irom German economic domination Pact Ended
Text read from the printed page and cleaned; old type leaves the occasional error.