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Great Depression

The Origin and Growth of Nazism pt.3

Like a thunderbolt, the world slump struck German economy amidships towards the end of 1929. The capitalist magnates of New York, London and Paris who had financed Germany’s industrial comeback, hastily called in whatever part of their loans they could lay their hands on. Thus the German crisis assumed even more disastrous proportions than that of other countries. Her industry had rehabilitated itself on foreign credit and when this credit vanished, the bottom fell out from Germany’s reservoir of production.

The Cause of the Crisis

In the two preceding articles it was shown that the fundamental cause of the crisis is not to be found in the defects of the world's monetary systems, and that the collapse of the gold standard, in this and other countries, was not responsible for the chapter of accidents but merely one of the features of the economic collapse. The real cause of that collapse has now to be determined. In discussing the depression in which the trade of the world has been floundering since the end of 1929, it is usual to relate the sequence of dismal events since then to the sharp break in general gold prices that occurred at that date.

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