Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-09
SAG IN BUSINESS
HAS REACHED LIMIT
Europe Reports Improvement
in Economic Conditions in
Some Countries.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, February S.-Cable dis
patches to The Business Week give the
following newsy survey of business
abroad for the week ending February 8:
Europe-The business sag seems to
have reached limit in some countries,
and here and there economic improve
ment is manifest. A general easing in
money has begun to relieve local credit
congestion, notably in Germany. The
trend toward agricultural tariff pro-
lection, primarily for cereals and live
stock, is growing among agricultural
industrial countries. like Germany,
France, C5echoSlovakia and Austria.
where the underlying motive is to
strengthen farm buying power. which,
though indispensable to lasting indus
trial prosperity, has recovered less than
an" other class of wealth since the war.
Business organizations generally are
Offering strong opposition to the pro-
gram which will come before the tariff
truce conference when it opens this
month. The inter-European steel car
tel has reached an agreement for six
months Of experimental concentration
of export selling through its own sales
ofhces, The international pipe cartel
has agreed to extend its cooperative
program in its present form for an
other 10 years.
Business Is SkepticaI.
Great Britain-Business is skeptical
over the value of the new Government
Economic Council, but pleased with the
Bank Of Englands appointment of ag-
greSsive advisers to its own board and
to the board of the Securities Trust.
Assurance of financial support from
the government by j. H. Thomas, min
lister OF unemployment, has renewed
agitation and plans looking toward
smalgamation within the Lancashire
cotton industry. The annual reports
of Britain's Big Five Banks characterize
the last bank year as good and pros
poets for the coming year as bright.
Sterling exchange continues to drop.
The coal bill has reached a deadlock.
There has been a perceptible slow
down from the recent high activity in
the coal industry, but shipbuilding is
picking up. New orders have been
placed for nearly 100000 tons, largely
tankerS.
Although business is still
depressed, with record of 100000 |
unemployed and difficulties are impend- |
ing 4 public finance, there is a stronger
tone and money is gradually easing I'M |
der the inflow of European Short-term |
capital. Considerable satisfaction is ex-
pressed at the return Of American long |
term credits. The net result Of the Sic |
mens-Dillon Read loan has been to |
stimulate the Berlin market after pro- |
longed decline. The Reichsbank has
made q further reduction of the bank |
rate, bringing 1t down to per cent |
The Reichstag has passed the match |
monopoly bill, whereby the Reich re-
ceives the proceeds Of the ->reuger & |
Toll loan during the next Is months |
Berlin continues hand-to-mouth financ- |
Ing, borrowing 100000 from the As /
ISOLATION Of Brandenburg Savings |
Banks, and another 10000 900 from |
ElekTowerke after consenting to the |
extension Of the present contract to |
supply current from 1913 to 1913, which /
means indefinite poStponementS of the !
proposal for extension Of municipal
plants.
Syndicate to Handle Sales.
A national syndicate is formed to
handle sales of potash by-products,
such as bromide, EPSON salts and mag |
neSium chloride. German bottle manu- |
facturers, with annual production of /
$4,000, 900 reach 1o-year agree |
ment"
France-The resolution of the Social
tst party to enter no coalition govern |
ment. meaning particularly no radical
coalition, clears the political atrnos- |
the present Tardieu government and |
leaves its members with a clear field for |
the development of the prosperity pro-
gram Of tax reductions and expansion |
of national equipment The social in
surance bill, involving the necessity for |
industrial readjustments, and scheduled
Tor Chamber consideration on February /
B. has been deferred. The continued |
rise in prices is rousing business anxi- !
ETY.. Ambassador Edge has opened con- !
versations toward a new Franco-Amer !
can commercial treaty superseding the t
present nnodus vivendi, and it is report I
ed to have met with cordial reception !
by the government.
Railway earnings are up, unemploy- !
ment Is declining, industries, including |
textiles, continue to show increased ac- |
tivity. exceptions being building, auto |
mobiles and leather goods; savings are |
up.
Belgium Sets Precedent.
Belgium.-The National Bank, by !
Offering for public subscription its par
ticipating share in the International |
Bank, has set precedent Debary Co., |
Amsterdam, affiliated with Deutsch- |
bank. DiSkontoges, has contracted with |
the Grand Duchy of Luxembourg for the |
hotation Of loan of 1000, 900 forms at /
per cent, priced at SO. Luxembourg !
proposes with this fund to develop cleo !
trio projects. including electrifcation Of !
the railroads.
Austria.-Negotiatio for the fiota-
ton Of loan of 500, 900. 900 will be
opened in London next week. Morgan. !
Schroeder and Rothschild are reported |
to be participating.
The Balkans.-Business is depressed. |
especially in Rumania, where there
have been bank failures in the Banat
and Siebenbuergen sections, due pri-
marily TO shortage of capital and ag-
ricultural losses due to overproduction.
Better returns from remaining farm
stocks and business improvement are
expected from now on.