Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-26
FOREIGN ECONOMIC
DEPRESSION SHOWS
SIGNS OF CLEARING
Bruening Victory DispeIs
Fear of a DebacIe in Ger.
man Finance.
FRENCH MAY AUTHORIZE
DISTRIBUTION OF GOLD
Bankers Inclined to Believe Young
Plan Revision Is
Necessary.
Special Dispatch to The star.

NEW YORK, October 25.-Cable dis
patches to The Business Week give the
following survey Of business abroad
for the week ending October IS:
EurOpe.-Rarely has one week brought
a more rapid clearing of real or i'm
aginary economic or political storm
clouds.
The parliamentary victory of the
German government, though by no
means considered final, at least has
dispelled immediate anxiety, while the
conclusion of the successful ratifica-
ton of the international credit and
syndicate to join the price-wage reduc-
ton movement have been favorably
noted. Where French obstructionism
was feared one week ago. 1t Is now ru-
mored that the government Is formu-
lating o program of measures to I'M
block French capital congestion and
promote a much needed redistribution
Of both capital and gold
Improvement in Germany.
Meanwhile the peseta has staged a
take steps to stabilize currency and
probably to resume the gold standard.
German improvement, and the an
nouncement that Brazil will meet the
interest due shortly on foreign loans,
coupled with q growing belief that the
revolution Is doomed to exhaust itself,
has rallied sagging bond markets, while
been responding to general improve
ment in the European situation, adj
vanced further on better Wall Street
advices. Metal and grain prices have
recovered appreciably from the recent
lows. Cotton prospects are considered
improved on better Indian market adj
vices, while imposing oversubScriptions
for recent British gilt edged issues has
stimulated the expectation Of greater
change and gold movements have prac-
tically ceased.
The disposition to consider seriously
and not unfavorably the German con-
tention that Young plan revision is
necessary appears to be spreading.
Bankers who have looked dispassion-
ately at the proposal are inclined to be-
lieve 1t Is not only justifiable but eco
nomically advisable. 1t Is the con-
sensus Of opinion this week, even in
Germany, that 1t Is highely desirable
to avoid a moratorium because Of the
unfavorable effect 1t would have on in
ternational credit. Eventual revision
may become an effort to bring about a
co-ordinated scaling down of war debts
on the plea Of economic revival. This
Is dependent on the attitude Of the
United States. Small hopes are en-
tertained that Congress will even con-
slider the proposal under present con-
ditionS.
Agrarian Conference.
The second agrarian conference at
Bucharest has struck seemingly inSur-
mountable snags due to the mixed agra
rian and industrial nature Of the coun-
tries involved. Tangible work likely to
produce some effect is expected to come
from the Politico-Econcmic Committee
appointed to carry out what at Warsaw
was termed agricultural naturalization.
but which the new conference terms
correlation of production and trade.
Europe is surprised but not greatly
perturbed over the move by the Soviets
to discriminate against purchases in
France, Rumania and Hungary. Pur-
chases in Rumania and Hungary have
always been negligible, but orders from
France have risen to more than 27,OOO,-
600 a year, are of considerable 1mpor-
lance to the French non-ferrous metal
industry. The Russian decree encour-
ages non utilization OF vessels, ports
railways and commercial 1acllltles OF
the three countries.
Great Britain-Business remains de-
pressed. The coal industry is running
into increasing diff1culty in finding mar
ket demands to equal production. Iron
and steel, jute and hides are fiat. There
is some improvement in the demand
for cotton goods and raw wool. but none
for manufactured wool. The leather
trade is Frightening.
The Imperial Conference has already
thrown ali British political parties into
q new state of chaos. The Tories Will
90 to the ballot favoring national econ
omy an emergency tariff on manufac-
lures, wheat quota system at a guar
anteed price, anti-dumping measures
against foreign fruits and vegetables, ,
and further imperial preferences. AS
party has not unanimously accepted 1t.
France.-Slowing inclining activity
evident since June, Is expected to con- |
tinue we'll into the next year, independ- !
ent of world conditions The decline
is still relative, for unquestionably
France is the most prosperous country
in continental Europe.
The grain crop failure Is now OFF, |
cially confirmed Wheat production /
this year will total only 100000 tons,
compared with last years official record
of 8,7O0 900 tons. which, according to |
private count, ran to 100000 tons.
Prices and living costs continue to
rise, notwithstanding the further decline |
in wholesale values as incoming ship |
ments of gold continue to pile up capt. |
tai without proper outflow into industry. |
The weight of taxation is likely to be- |
come a major issue before the present |
phase of the business cycle is COM
pleted.
Germany.-The parliamentary victory |
of Chancellor Bruening, though no def
mite solution to the political crisis, Is
an important milestone In the path |,
toward restoration of public confidence /
and financial sterilization.
Last weeks political developments re-
lieved overnervouS business and caused |
an all-round favorable reaction on
finance and trade. The panicky demand |
for foreign bills has subsidized; exchange /!
rates have returned to normal levels. |
The Reichsbank statement for october |
Is still shows a loss of gold totaling !
go, O0O, 900 during the previous week, but |
an increase of 100000 in foreign ex-
change holdings which indicates that
the banks conversion Of gold into for |
eign bills and checks Is now ahead of |
AaNnonH