SIGNS OF TROUBLE

Wairarapa Times-Age, 7 September 1938, Page 5

SIGNS OF TROUBLE

PRODUCTION AND TRADE ASPECTS OF THE PRESENT / DECLINE LEAGUE OF NATIONS SURVEY By Telegraph—Press Association. Copyright. GENEVA, September 6. Although it is too early to say that the present contraction of world trade marks the beginnings of a depression lasting as long, even if it is not so acute, as the last, the League of Nations Economic Survey, just issued, believes that the events of the next few months will decide whether it is merely a recession or a definite trend toward depression. International trade revealed three important aspects:— , T) The quantum of world trade has declined seriously. (2) Relations between export and import prices are more unfavourable to raw material and foodstuff producers whose trade balances are seriously reduced. s (3) The trend of trade has moved advantageously for industrial countries, due largely to the reduced demand for imports from the United States. • The survey does not fear an extensive banking or financial crisis similar to 1931. Moreover, monetary authorities are readier to adopt an expansion policy to offset the depression.