WORLD ECONOMICS

Hawke's Bay Herald-Tribune, Volume 81, Issue 38, 8 November 1937, Page 11

WORLD ECONOMICS

League of Nations Surscy , RKE IN PRIGE lEVELg / The Economic Intelligence Serviee oi the League of Nations has just publish* ed the "World Economic Survey, 1936" 37." After six years of publication, the survey has now an established place in economic literature. It digestff both for the expert and for the general public the mass of technical publiea* tions that now appear on different as^ pects' of the world economic situation. * The survey begins with a chapte? which discusses the efl?ects of the Trw partite Agreement of September, 19364 and the extent to w:hich the agreement remedied price discrepancies. and prof* " vided a greater toeasure of exchaagt stability. • .,1, After a discussion of the various IwtA tors of expansion, such as increased'prosperity in the raw material produc* ing countries, industrial expansion, and the stimulus of rearmamdcit, an imi portant chapter is de'votedl to produce * tion, stocks and trade. Among the striking social efPects of 1 the rapid increase in industrial producn tion noted in this chapter, is on increase of productivity coincident with a massive reduetion in unemployment. An important section is devoted to the relation between manufacturing production and international trade. There is still a serious lag in recovery as rfegards trade in f oodstuffs and '. fe*change of manufacture. ; The remaining chapters are devoted to a description and measurement of rising price levels, th'e improvem'ent of labour conditions and the incTease in world trade. The last two chapters on the control of credit and the economic situation in July, 1937, are of special mterest. In the former, attention is drawn to the fact that, v|hereas in previous cycles the first signs of a strained ere- . dit situation occurred in the short-term market, in the present cycle, long-term interest rates bave been the first to rise. Despite tlhe opportunity given to reduce indebtedness, "the rather ominous tendency toward the contraetion of new domestic debt" noted in the previous year's survey was further aecentuated during the year. Debt is being accumulated as a result of rearmament, expenditure on public works, social services, and relief. The fraal chapter is devoted to a discussion of the evolution of the trade cycle under the influence of cross currents of a non-economic character — the international political situation, rearmament, the fighting in the Far Ea'st, and in Spain. Under the influence of these factors, it is pointed out, "prices are beginning to rise and shortages of certain commodities to develop, so tihat already standards of living are being injuriously affected." The economic situation, of the chief countries in July, 1937, is surveyed in this chapter, partieular attention being given to the United States, the U.S.S.R., Japan, Italy, Germany, and . Great Britain. A -flnal section relates to the mone-, tary situation, with partieular reference to the countries which have receutly devalued their currencies.