- - - POLITICAL FACTORS.
Before dealing, however, with some of the actual chief financial developments of the year; it must be noted that political developments; arid espeaally international poli- tics, really constituted the dominating influence upon all markets. Of these foregoing developments I should be inclined to assign first place and importance to the outcbrile of the Lausanne Conference. The virtual collapse early in the year of the Hague Conference had a disastrous effect upon all markets, as it 'scente(l to well-nigh dispel all hopes of the chief European, nations co-operating in efforts to deal with the financial plight of many of the European countries. Agreement on the vexed problem of German reparations seemed hopeless of attainment, and the effect was to increase the feeling of distrust in Europe, while financially .a fresh blow was given to confidence in the Spring of the year by the discovery of. the appalling Kreuger frauds. The failure of the Hague Conference occasioned a general feeling of pessimism with regard to Lausanne, but fortunately the outcome of that.. Conference exceeded general expectation. Possibly the increased depression and misery following upon the cedlapse of the Hague Conference had produced a great effect upon those. assemblhig at Lausanne.. At all events a general agreement was reached at that Conference promising a drastic reduction in German reparation payments, though it was recognized that final agreement on details milt necessarily depend upon the -preparedness of the United States to re-examine the whole question of international War Debts. The political and financial atmosphere was vastly improved as a result of the better understandings reached between the Allies and Germany, while, also as an outcome of Lausanne, prelim in-. Aiv arrangements were made ,for a „World Economic.
(Continued on page xviii.)
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