WORLD DEPRESSION

Greymouth Evening Star, 3 October 1930, Page 5

WORLD DEPRESSION

MR HOOVER’S SPEECH. [BY CABLE- —PBESS ASSN. —COPYRIGHT.] (Reed. Oct. 3, 8 a.m.) NEW YORK, October 2. A. message from Cleveland (Ohio) states that Mr Hoover, addressing the American Bankers’ Association, said: “Wo have had a severe shock, and there has been disorganisation of our economic system, which has temporarily checked the march of prosperity. Though our production and consumption have been slowed down to 85 and hi) per cent of normal, yet by the very fact of the steady functioning of the' major portion of our system, do wo have the assurance of our ability end economic strength to overcome this decline. The depression is world-wide, its causes and effects he only partly in the United States. Our country was engaged in over-specula-tion in securities, which crashed a year ago. Perhaps an even larger and imminent cause of our depression has Been the effect of the collapse .of pr’ce.s following the over-production of important raw materials, mostly in foreign countries. Particularly had tho planting of rubber, coffee, wheat, sugar and cotton expanded beyond v, mid consumption, even in normal times. Certain metals likewise were over-produced, notably zinc, copper, and silver. These major over expansions have taken place largely outside tho United States, and this collapse has reduced the buying power of many countries. Prosperity has been temporarily affected by various causes on nemo occasions accompanied by political unrest, such as in Brazil, Columbia, Chili, Peru, Mexico, Australia, Canada, India, China, Argentine, Cuba and Java, but readjustments in pricey arc far along the course. Most oi" these) commodities are below the level al which sufficient production ( -.;n be maintained for the world’s normal needs, and therefore sooner or Jal* r must recover. We are able to a, considerable degree to free ourselves of world influence, and make a large measure of independent recow ry because we are so remarkably self-contained. We shall need mainly la depend upon ourselves for recovery, as other nations are in greater difficulty than we are, and wo shall need again to undertake to assist. and co-operate with them. There is ho simple explanation of these mow-moms, and this is not an occasion. lor analysis of many theories irnch as 100 little gold or inflexible use (i i it. Whatever the remote causes may be, the immediate cause of moist hard times is inflatory booms. These strike some sentiment of ecof/t>mic life somewhere in the world, and their re-echoing destructive result will bring depression. We may safely assume that our economic future, is safo as far as it is dependent upon the competent handling of problems of productivity, but one result is to further advance toward stability, which is even more urgent, for with higher standards of living, ‘ tho whole syStom is more sensitive and penalties of instability more widespread.” Tho President concluded by saying " “any recession in American business ’ is but a temporary halt in the pros--1 parity of a great people.”