ECONOMIC RECOVERY

Hawke's Bay Herald-Tribune, Issue 162, 27 July 1937, Page 6

ECONOMIC RECOVERY

The conciusion that the most legitimate form of future expansion will be found in the revival of international trade is reached by the Bank of International Settlements in its annual report, whioh reviews the future of world economic reoovery. The report points out that five years have passed sigce the turning point in 1932, and that the duratiou of an upward trend for more than five years is of rare pccurrence in past business oyoles, and has in fact never occurred in British experienoe. In many 'respeots, however, the present expansion differs from those that have preceded it. Although general, it is not international. The index of international trade is still 10 per oent below its 1929 level. Although the various countries have not been uaffected by oonditions elsewhere, they have experieneed rpcovery at different times, and have stimulated it by difierent means. Only m 1936 did many of the raw material produoing countries feel the full benefit of the general expansion. The recovery is mainly domestio, and labour and capital resources ramain unemployed in the export industries. Moreover, even in the domestic industries the rate of recovery has been unprecedently slow, and, while surplus capacity is now largely abgpvbed, there ha& been a sinaller degree of exten§ious pf plant than gccyirjred in pr«vipu| peripdf o|