Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-20
POLITICAL MATTERS
CONTROL EUROPEAN
TRADE SITUATION
Situations in Balkans and
Italy Gives Little Confidence
to Outsiders.
INCREASE IN BRITISH
COTTON DEMAND SEEN
General Business in France Fairly
Active, With Increase in
Last Week Seen.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, July 14-Cable dis
patches to the Business Week give the
following swift survey Of business
abroad for the week ending July 10:
Europe.-The generally unsatisfac-
tory European international situation
has again caused a distinct feeling of
uneasiness in business circles. The
Little Entente is opposed to the threat
ened restoration of the monarchy in
Hungary, following Carols coup d'etat
The situation In the Balkans gives
little confidence to the outside world
that the threat of political broil in
these countries may not be translated
into an actual fact before the end of
the year. MuSSolini's continued belli-
cose utterances are no longer consid-
cred merely gesture for home con-
sumption. Observers hint that II Duce
desires the formation of a new COM
blnatlon OF European powers, over
which the French are rIuch perturbed.
Russian orders continue to be a bone
OF contention In several countries,
notably Great Britain, Germany, italy
and Poland. Unofficial reports on the
harvest In Russia turned q bit sour
this week, with runors that rainy
weather and heavy dews are interfering
with work in the South, while general
growing conditions in the North are in
some regions slightly below average.
British Business Slow.
Great Britain.-Business In general
shows no improvement, though a
slight increase in the demand for cot
ton goods created q bit Of optimism
this week. The French gold drain
continues on both sterling and dollar
balances, with the expectation that
france may eventually drain gold from
New York.
June trade shows decreases: Imports.
8.8 per cent; exports, 14.1 per cent:
re-exportS, 16.1 per cent. Total exports
were down lat per cent and the ex-
cess OF imports over exports increased
2.3 per cent compared with June, 1929.
Heaviest declines were registered In
cotton, coal, coke, pottery, iron and
steel, and electric machinery.
Germany.-The country's financial
policy was made definite when the cab
met enacted by decree its financial
program which taxes incomes more
heavily and increases drastically the
bachelors and head taxes. Two i'm
portant financial issues remain: The
deficit of communal finances now ag-
gregating $125,000,000; the deficit for
the federal railways, totaling 500, 000,-
600. To cover the latter, the govern
ment has approved a slight increase in
passenger rates, effective September /,
expected to yield $12, 900 900 before the
end of the year.
Business sentiment generally Is dis
appointed In the price reductions which
resulted from recent agreements and
Lowered raw materials prices. Steel,
IN particular, has not been In greater
demand under the reduced prices and
confidence in the plan Is at low Aebb
Following the announcement of the
Opel Co., controlled by General Motors,
the German Ford Co. reported increases
In sales for the first half year of SIS
per cent above last year despite a de-
cline in total sales of automobiles in
Germany. Expansion of the Ford or
ganization is marked by the number
of Ford dealers which has increased
from 100 to 275 within the last nine
months.
France Sees Activity
France-General business activity is
fair and shows slight improvement over
last week. The coal market Is calm; iron
and steel production Is higher, with
increased export, but lower domestic
consumption, of steel; the machinery
industry Isl running at maximum ca
pacity, due to new replacement orders;
ClCCbI1Cdl
ton activity Is setting new record
with the city of Paris planning the
immediate construction of 10000 work.
mems houses. The depression in the
cotton industry continues with low
prices and slack demand; wool is active.
There is no improvement in the auto
mobile industry, either French or Amer
can. The agricultural outlook is unsat-
isfactory due to continuing unfavorable
weather.
Belgium-The stock market continues
weak and the public unintereSted in
long term investment. Money Is cheap
with call money at 1875 per cent.
Coal demand Is weak and stocks on
hand are approaching 100000 tons.
Industrial grades have been reduced
from z to Is francs a ton but the de-
mand Is still insufficient to absorb the
surplus. For household grades the exc
port demand Is good and the condition
is more favorable.
Italy-American automobile agents,
except Ford, are presenting collect
i've protest to the government streSSing
the losses through ruin of their
business and greater unemployment
through the closing of offices, shops
and service stations. Ford-ISotta agree
ment has been reached for the produc-
ton of airplane engines to be followed
by similar arrangement for automo-
bile manufacture. Apparently Fiat Is
included and will furnish Ford with
light, Isotta with heavy engines.