NATIONAL RECOVERIES.

Manawatu Standard, Volume LVI, Issue 308, 26 November 1936, Page 8

NATIONAL RECOVERIES.

There has been an upward movement in world production since about the middle of 1932, and that date was the turning point of the depression in most countries. It is perhaps a significant fact that industrial production has shown the greatest expansion in agricultural countries. Eor example, the Union of Soviet Socialist Hepublics shows an enormous growth between 1929 and 1935. Taking 1929 as the base equals 100, the production in the first quarter of this year was 348. .Between 1929 and 1935, engineering output in the U.S.S.R. increased by almost 500 per cent.; that of basic chemicals by over 400 per cent., of rubber by almost 400 per cent., of electricity by more than 300 per cent.; and of dyestuffs by almost 300 per cent. These are very great increases in a short time, and point to a concentration of effort upon the heavy equipment industries. If this rate of progress is maintained over the next few years, Soviet Russia will become a great industrial country independent of other nations for all the essentials of economic life.

Japanese industrial expansion had also been very rapid up till 1935, but in that year the rate of increase slowed down considerably, and the seasonal drop in the first quarter of 1936' is reported to have been heavier than the similar fall in the preceding year. This slowing down appears to be mainly the result of financial difficulties in the latter part of 1934. The bulk of the increase in Japanese production lias been in capital goods, and has been largely dependent upon Government expenditure financed by borrowing.

There has been rapid progress in industrialisation in such countries as Chile, Denmark, Estlionia, Finland, Greece, Hungary, and Rumania, and this seems to be the result of low prices for agricultural products. As these countries were unable to _ sell their products at a margin of profit, they were unable to purchase’ the products of industry, and had to set up industries of their own to supply their own needs. Now these countries are developing their secondary industries, and are thus becoming more and more independent of imports to the great loss of the exporting countries. Great changes are obviously taking place in the economic structure of the world, and the adjustments which must be made will be very hurtful to some countries.