Abstract
IN a general report on the economic aspects of international industrial agreements recently prepared for the Economic Committee of the League of Nations, it is concluded that international agreements constitute an important attempt to remedy certain disadvantages of the present economic evolution. They are not a panacea and do not apply to all products? they may mitigate but not abolish economic crises. Like other human institutions, they are liable to error and even abuse, but experience has shown that they quickly pay for any mistaken policy, and a false step may even imperil their existence. When of long duration, their interest definitely coincides with the general interest, for example, in stabilising at moderate prices, eliminating dumping, stabilisation of customs duties, and of employment, and in minimising the fall of wages in periods of depression. The advantages of lower costs to producers are secured in various ways, such as regular production, diminution and standardisation of stocks, elimination of unnecessary transport, economies and increased efficiency in research and other technical matters, patents, marketing, sales organisation. The advantages of greater equilibrium between production and consumption and of relative stability in prices are equally beneficial to producer and consumer. Agreements do not eliminate competition, but the limitations they impose on competition are beneficial, as avoiding waste or destruction of capital. The existence of international agreements did not create the present crisis? on the contrary, the seriousness of the crisis intensified the movement for such agreements to mitigate its consequences. They are accordingly considered to constitute a valuable guarantee of the economic and political stability of the nations.
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International Industrial Agreements. Nature 130, 162 (1932). https://doi.org/10.1038/130162a0
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DOI: https://doi.org/10.1038/130162a0