SLUMP IMMINENT.

Horowhenua Chronicle, 13 July 1938, Page 5

SLUMP IMMINENT.

LEAGUE FINANCIAL EXPERTS GLOOMY. GRAVE DECLINE IN WORLD COMMERCE. (By Telegraph-f'ress As«u.-Copyright) Received “Wednesday, 1 a.m. LONDON, July 12.

The Manchester Guardian’s Geneva correspondent says the League’s financial experts gloomily view the world’s economic situation in a report to the Financial Committee,

They opine that another serious crisis is imminent. The decline in commercial activity is so grave, at least in the United States, that it is no longer considered to be a slight recession holding out the hope of an automatic recovery. During the first three mouths of 1938 world industrial production lost the ground it regained in the previous two years, being about 15 per cent, below 1929. World commerce fell to 90 per cent, of the 1929 level and unemployment was increasing in most countries.

WHEAT SURPLUS CONCERN “MUST EXPORT SOME SOMEHOW.” Received Tuesday, 9.5 p.m. WASHINGTON, July 11. The official forecast estimates that the 1938 wheat qrop will reach 967,412,000 the second largest on record. It is expected the wheat surplus will reach 400,000,000 bushels. Winter.wheat is estimated at 715,425,000 bushels, durum 33,376,000 and other spring wheat 218,011,100. The Agricultural Adjustment Administration, commenting on the situatipn, said: “We have got to export some wheat somehow." It is indicated that proposals to subsidise exports have been considered biit no decision has yet been made. The Government undei the Farm Law will be compelled to grant loans ranging from. 59 to 85 cents per bushel to growers who wish to hold surplus supplies from the market until it improves.