ABSTRACT
The quantum of world trade stands at about three-quarters of its 1929 level; the index of the gold prices of goods entering into international trade is not more than half its pre-depression figure; and the gold value of world trade is about one-third of its former level. Since such a large part of the international investment undertaken by all the important creditor countries has resulted in the expansion of the indebtedness of agricultural countries, it is clear that any circumstances which vitally affect agricultural prices will alter both the ability of those debtors to maintain service payments on the debts which they have already contracted, and also the magnitude of the debt burdens which they will be able to bear in the future. The movement towards economic nationalism has been one of the outstanding developments of the past six years. It has gathered impetus from various forces.
