A World Economic Crisis ?
The existence of a trade recession in this, and indeed most other countries, has been recognised for some months, . but it will come, nevertheless, as an unpleasant shock to many to read the depressing words of the League's financial experts it the document they have prepared for the Financial Com- mittee. It seems impossible to regard the present economic relapse as no more than a trade recession from which recovery would in due course automatically ensue. The League's experts .express the belief that a serious world economic crisis, largely due to the trade depression which began in the United States some twelve months ago and spread, though with less severity, to Britain and France, is imminent. Though these are only three countries, they include the foremost trading nations and their condition will certainly affect the whole world decisively. The document, however, concludes on a less pessimistic note. It points out that a crisis now is likely to be more easily overcome than in 1929, because there is no serious credit inflation, and because both short-term foreign indebtedness and world stocks of raw materials are far smaller and the possibilities of credit expansion are greater.
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