DESTRUCTIVE BOOMS.

Auckland Star, Volume LXI, Issue 103, 3 May 1930, Page 9

DESTRUCTIVE BOOMS.

Lessons From Recent American Slumps. HOOVER'S WARNING. WASHINGTON, May 2. The President, Mr. Hoover, in an addivis to the United States Chamber of Commerce, said the country had passed through the worst of* a grcat economic crisis, and would recover. He had proposed the creation of a body to study the recent experience, and to try to devise measures for prevention and remedy. , , , . Building construction had been accelerated beyond his hopes, and unemployment had thereby been decreased; but home building - had not progressed, because credit had not been available. The statistics had enabled many persons to read the warning signals and avoid the maelstrom of speculation. "All slumps are the inexorable consequences of the destructive forces of booms," said Mr. Hoover. "The natural optimism of our people brings into being a spirit of undue speculation against the future, and stimulates waste and extravagance _ and unsound enterprise, with the inevitable collapse in a panic. "We are not yet entirely through the difficulties of our situation. We have need to maintain every agency and every force until we are far along the road to stable prosperity."