ECONOMIC CRISIS

Auckland Star, Volume LI, Issue 205, 27 August 1920, Page 5

ECONOMIC CRISIS

BAD TIMES COMING. PROBLEMS FOR AMERICA. (Ht Cabic—Press Association.—Copyright.) I i Rp.-Plvpil li.to a.m.i j LONDON', August M. Vr. Llapham (president of the eonomic section of the lirjtish Aesocia-| tionj. in an address, predicts that a com-; mercial and industrial slump is mure of a certainty in tin* ruin--! states than in Britain. If America remains a creditor I nation she must arrange to buy more outside, but her politic' , ! processes are probably too .-low to enable her to j adjust her policy before the slump. Britain's position is better provided her custor crs continue their offerings, but: there i- no certainty of the war-damaged nations (loing so. This causes anxiety, ; for the chief combatants, except America i and Britain, are far from able to pav l their way. I; I.ie combatant* had done what ! Britain had done, namely, adjusted trade balances within a reasonable time so i :is to avoid a renewal of special credits, i I the slump would come nut :i* an inter-! j national crisis, but a< n gradual declinel when the present abnormal demand for j goods ceased. There uas reason to fear.! ■in view of the complicated and dangerous j ; currency position in many countries and ' ; tho uncertain political economic future , of Central and Eastern Europe, that a! genuine crisis, distinct from depression, j wou'd occur with a bad spell of unem;>loymcnt. This would be more dangerone because of the high standard ot living to which people were becoming accustomed.— (A. and S.Z. Cable.]