SLUMP PREDICTED.

Taranaki Daily News, 28 August 1920, Page 7

SLUMP PREDICTED.

IN AMERICA AND ENGLAND. FEAR OF UNEMPLOYMENT. By Telegraph.—Press Asm.—Copyright. London, August 25. | Dr. Clapham, piesident of the economic section of the British Association, >n his address, predicts a commercial and industrial slump, more certainly in the United States than in Britain. If America remains a creditor nation she must arrange to buy more outside, but iher political processes will probably be ] too slow to enable her to adjust her policy before the slump occurs. Britain's position is better, provided customers continue to be offering, but the uncertainty of the war-damaged nations doing so caused anxiety. The chief combatants, except America and Britain, are far from able to pay their way. Dr. Clapham said that if the combatants had done what Britain had done, namely, adjust trade balances within a reasonable time and s6 avoided renewal of special credits, the slump would have come, not as an international crisis, but as a gradual decline when the present abnormal demand for goods ceased. He said that there is a reasonable fear, in view of tha complicated and dangerous currency position in many countries and the uncertain political and economic future of central and eastern Europe, that a genuine crisis, distinct from depression, may occur, with a bad spell of unemployment, which will be the more dangerous because of the high standard of living to which the people are becoming accustomed.—Aus.-N.Z. Cable Assn.