U.S. Trade Boom Will Not Burst As In 1929, Expert Says

Gisborne Herald, Volume LXXVII, Issue 23288, 24 June 1950, Page 5

U.S. Trade Boom Will Not Burst As In 1929, Expert Says

(10 a.m.) NEW YORK, June 22. The current business prosperity in the United States «.'ill not crash as it did in 1929. m the opinion of Mr. Sumner Slichter, professor of economics at Harvard University. He based this view on the belief (hat United States economy had become more stabilised in the last 20 years and, ns a result, will be able to expand in the next few years at a satisfactory rate.

Mr. Slichter analysed the changes in Ihe business world in an article in the Yale Review. He listed these reasons for greater stability of economy:—

1. Improved business practices and policies. 2. More unemployment compensations and pensions. 3. Better monetary system and an

improved Government fiscal policy

Mr. Slichter said the increases in consumer credit in the last few years was the one current disturbing situation harmful to economic stability. “The volume of mis debt seems destined to become much larger, especially since the former power of the Federal reserve authorities to regulate the terms of instalment buying had been withdrawn.” he wrote. Mr. Slichter recommended that the Federal reserve system’s former power to regulate consumer credit be restored “since a large rise in consumer indebtedness would make (he economy more vulnerable to recession.”