ABSTRACT
The supply of capital-goods coming forward encounters a slackening demand. There ensues depression in the constructional industries and the industries producing raw materials. It is well known, in fact, that the breakdown is most serious in the industries producing what are known as producers' goods; that is to say, the so-called constructional industries and the industries producing raw materials. In these industries the depression shows itself as a condition of over-production, a condition in which the supply coming forward is not taken up at profitable prices, a condition in which earlier errors of anticipation are revealed. By the spring of 1927 the upward movement of business in the United States, which started in 1925, showed signs of coming to a conclusion. A moderate depression was in sight. There is no reason to suppose that this depression would have been of very great duration or of unusual severity.
