(i) Agricultural overproduction remained a problem and it was made worse by falling agricultural prices. (ii) As prices slumped and agricultural incomes declined, farmers tried to expand production and bring a large volume of produce to the market but it pushed down prices. (iii) In the mid-1920s, many countries financed their investments through loans from the US, it was extremely easy to raise loans in the US when the going was good. (iv) But in the first half of the 1920’s, countries that depended crucially on US loan faced an acute crisis. (v) The withdrawal of the US loans affected the rest of the world in different ways. In Europe, it led to the failure of small major banks and the collapse of currencies such as the British Pound Sterling.