ABSTRACT
In 1925 the iron and steel industry was described by experts as suffering from the financial, monetary, and price instability of the time, which was hampering the accumulation of capital and the demand for capital goods. The iron and steel crisis was at first confined to Europe. In the United States, the largest producer, production had increased by 45 per cent in 1925 over 1913. The reasons for the German losses are obvious. Those of Great Britain were due to the disadvantages of high labour costs, foreign tariffs and export bounties, depreciated exchanges and high transportation charges. On the Continent the instability of prices and the declining demand led in 1926 to the organization of the International Steel Cartel or Entente by German, French, and Saar interests, to which Belgium and Luxemburg shortly adhered. The possibility of agreement was greatly facilitated by the internal organization already existing in many producing countries.
