after the war there commenced a series of movements in exchange and prices unprecedented throughout the whole period of prosperity. Currencies rose and towered above others and broke like Atlantic waves, and people found the good money in their banks changed to useless paper in a period of a few months. It became more and more difficult to carry on foreign trade because of the increasing uncertainty of payment, and since there was scarcely a manufacturing industry that had not to obtain some material from abroad, the entanglement of foreign trade often involved a strangulation of production at home. Trade and industry sickened and lost heart more and more in this disastrous uncertainty; it was like being in an earthquake, when it seems equally unsafe to stand still or run away; and the multitudes of unemployed increased continually. The economically combatant nations entrenched themselves behind tariffs, played each other tricks with loans, repudiations, sudden inflations and deflations, and no power in the world seemed able to bring them into any concerted action to arrest and stop their common dégringolade.

      The opening years of the second third of the twentieth century saw Homo sapiens in the strangest plight. The planet had a healthier and more abundant human population than it had ever carried before, and it lacked nothing in its available resources to give the whole of this population full and happy lives. That was already the material reality of the position. But through nothing in the world but a universal, various muddle-headedness, our species seemed unable to put out its hand and take the abundance within its reach. As we turn over the periodicals and literature of the time the notes of apprehension and distress increase and deepen. The war period of 1914-1918 was full of suffering, but also it was full of excitement; even the dying on the battlefields believed that a compensatory peace and happiness lay close ahead. The survivors were promised “homes fit for heroes.” But the Depression of 1930 and onward was characterized by its inelasticity; it was a phase of unqualified disappointment and hopelessly baffled protest. One lived, as one contemporary writer put it, “in a world bewitched”.

      The economic consequences of this monetary disorganization followed hard upon it, but the deeper-lying destruction of social morale and its effects were manifested less immediately. The whole world system heretofore had been sustained by the general good behavior of common men, by the honesty and punctuality of clerks, workers of every sort, traders, professional men. General security depended upon habitual decent behaviour in the street and on the countryside. But the common man behaved well because he had faith that his pay was a safe, if sometimes a scanty, assurance of a certain comfort and dignity in his life. He imagined an implicit bargain between himself and society that he should be given employment and security in exchange for his law-abiding subordination, and that society would keep faith with his savings. He assumed that the governments would stand by the money they issued and see that it gave him the satisfactions it promised him. He was not a good boy for nothing. Nobody is. But now in various terms and phrases all over the world millions of men and women were asking themselves whether it “paid” to be industrious, skilful and law-abiding. The cement of confidence in the social fabric from 1918 onward was more and more plainly decaying and changing to dust. The percentage of criminal offences, which had been falling through all the period of prosperity, rose again.