By September 1931, Maranzano realized Luciano was a threat, and hired Vincent "Mad Dog" Coll, an Irish gangster, to kill him. However, Lucchese alerted Luciano that he was marked for death. On September 10, Maranzano ordered Luciano and Genovese to come to his office at the 230 Park Avenue in Manhattan. Convinced that Maranzano planned to murder them, Luciano decided to act first. He sent to Maranzano's office four Jewish gangsters whose faces were unknown to Maranzano's people. They had been secured with the aid of Lansky and Siegel. Disguised as government agents, two of the gangsters disarmed Maranzano's bodyguards. The other two, aided by Lucchese, who was there to point Maranzano out, stabbed the boss multiple times before shooting him. This assassination was the first of what would later be fabled as the "Night of the Sicilian Vespers."
The internecine warfare in China provided excellent opportunities for Japan, which saw Manchuria as a limitless supply of raw materials, a market for its manufactured goods (now excluded from the markets of many Western countries as a result of Depression-era tariffs), and a protective buffer state against the Soviet Union in Siberia. Japan invaded Manchuria outright after the Mukden Incident in September 1931.
The Lytton Report appeared a year later (October 1932). It declared Japan to be the aggressor and demanded Manchuria be returned to China. The report passed 42–1 in the Assembly in 1933 (only Japan voting against), but instead of removing its troops from China, Japan withdrew from the League. In the end, as British historian Charles Mowat argued, collective security was dead.
Britain leaves the gold standard, and the pound sterling depreciates by 25%. Despite warning of disaster, the departure proves beneficial to the British economy, as exports become more competitive. Additionally, the Bank of England was now free to engage in money creation, and reduced interest rates from 6.00% to 2.00%.