ABSTRACT
TheTreatyofVersaillesusheredinanewerainwhichBritainnolonger dominatedtheinternationaleconomy.Theolderstapleexportswerenot competitiveandthenewindustriescouldnotsufficientlyreplacethelostmarkets. InvisibleearningsthathadmadetheCityofLondonthefinancialcapitalofthe worldalsodeclined.Inthe1920s,Britainstillreliedontradefortwenty-fiveper centofitsGNP.Inanincreasinglycompetitiveandshrinkingmarketfreightrates fell.Inthe1930s,followingthedepression,contractionintheworldeconomy meanttherewaslessdesiretomovegoodsaroundtheworld.Theroleofthe colonialterritoriesandtheireconomicdevelopmentremainedimportantalbeit contestedissuesthroughouttheyearsofthedepression.In1932,anempire-trading blocwithprotectivetariffsreplacedfreetradeinanattempttostimulatetheBritish economyandenlargethesterlingarea.Althoughthiswasfocusedonthewhite DominionsofCanada,Australia,NewZealandandSouthAfrica,itincludedthe tropicalcolonies.Anypoliticaldecisionsaimedatthepromotionofinternational commerceandcolonialdevelopmentwereofmajorconsequencetoLiverpool,the shippingfirmsthatcontrolledthelocaleconomy,andthefinancialfortunesofthe SchoolofTropicalMedicine.
