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Show "SIDES RECOVER FROM POSTVJAR I EFFECTS Most Serious Effect Has Been Deflation of Kronen and High Wages t STOCKHOLM, May 12. Sweden'a complete futuro rwovcry from a aeriea of painful operation for poMwnr III 1 In forecawt In th official economic rc- port of the Kwedirh foreign office ! commerce department )uu made pub- lie. 11 printi pal note of optimism I the Sweditdi cxehnnite. After a eur and a half of deflation and tniernu-(-J't lonal ll'piitlatiui etill under way. the tSvv illMti knma in virtually at par. Tho K"vern im-tit expert find that KrcuicHt obstacle to economic re-iiivcry'li" re-iiivcry'li" In tho competition of conn-trie conn-trie with depreciated currency and in the fact 1 hat wage hae not yet been auf f Iciently reduced. t'nuntric. with low exchange tan dump Kood in Sweden nt price inralnnt which Swedish Swed-ish inanuf art iirera cannot compete. I I-ikewinc. in the foreign maiketa Swnl- j n 1h eeverely handicapped, because of her I. lull exchange this. i The report (dale, that there H a tron? U-nden y toward revival In many linen of Industry, but that the. natural procesg of ImildinK' up 1 delayed de-layed hy unet tied rondit iun in central cen-tral and run tern Kurope, tho monetary mone-tary trouhle nnd the, uncompleted proceH of wuko adjumtnent. ' j Tho foreign office find that dtirln? I th.- necond half of IH-I and tin flrM 1 (pmrter of thin year then- wu oh- , K'rvdl a fliulit incrcaHe in the actlvl- , tir of Sweden' Italic tliduHtrjes, nc- ' companled hy expansion tn foreign . tad.-, upccially in timber, pulp and paper. j A'thouirh jrreat tnterert hn been 1 'liitwn in nn early return to the (fold ' ta ndard. thw foreign office reports thnt doubt h hive been expreAed of th wisdom of ndopttitff the Anierteiin dollar dol-lar nn haxl if pailt. aa BUKeted by' Horntt financial txpeitn. I Hank mvlnu' anil (leposits dhow I marked drop dtirinK the flrwt quarter of lb,- year. Thin In Mtrlhtiled to mn-hu mn-hu in i' I ion of t-apitul durinK the period of deprcHsion. Never him the ntnc k rxchnnne wlt-n''nedHurh wlt-n''nedHurh ilrop invalnep of Mtnrkn, th market havinir been ffeetel. Payaj tho report, by i he heavy Iohhcs suffered i by iniiuMrial coi porution und tho nun-activity nun-activity of u'heift. Hweden In at ill nufferlnx from a buy-erw' buy-erw' strike, which uccotnpanied t lie inklnic price level, and imohI Indua-trie Indua-trie aro worklna; on a acalo of ono-third ono-third to two-thlrda rapacity. Th a. mi a of Improvement in unemployment unem-ployment aro weak. Muwewr, th number of uuetnpluyrd la koIdk down. Titer werw &H.7o(i 1ubl.nr. nn January 31 and only 1 .".; nn pun at the dune of February. ;ind uneinplo m nt contln- ue In (:-M-n.is(. oi tlieji.- iti-ue than' i.'..Ouu wer,. ri-ii?.K k eriuneut aid.' The r-pori emi'haviz, thai although' tare rutu in w.iip cI'm have been j toaide. r-;tl vt iiiv'w-- ih.it in. nacea coin-' : patrd wi:h iohi t.f livirm- are nt i It , alMtve prewar ftan lunl and muat be .lowered further Thin la held to be j hkHy In view of the etita In the I nlt-ed nlt-ed Statin nnd Kiilaud. |