Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-07
Wage and Unemployment Sit
uations Are Still Disturb
Ing Factors.
BRITISH MARKET PRICES
MOVE IN NARROW RANGE
Overdue Defation Cycle Beginning
to Make Appearance
in France.
Special Dispatch to The Star.

Tor the week ending December 6:
Business remains quiet, with the basic |
Trend one Of very gradual improvement |
except in France. Price formation par
ticularly shows greater stability. Prices,
IS reflected on British markets-which |
are the largest open markets In the |
world and consequently the most rep
resentative-continued to seesaw during |
but within narrowing limits
and with greater upward trend. OF
q total Of rs commodities recorded, 80
compared with Al in October) declined
in price, though only 2 Gin contrast
with 5 In October) dropped more than
10 per cent. The prices on 20 COM
modittes compared with 16 in October)
remained unchanged. On % October
only I'D the price increased.
Prospects Unsettled.
Immediate general prospects are I'M
settled. Wage issues and coal strikes
have broken out in Great Britain fol-
lowing application Of the terms Of the
coal act before preparations had really
been completed. Attention in Germany
Is focused on the reaction of the
Reichstag TO President Hindenburgs
PRONUNCIATION by emergency decree of
Bruening's fiscal reform without first
submitting the reforms to Parliament,
This measure was dictated by tactical
considerations. German political par
ties are heSitant to assume RESPONSE
sibility for public support of Bruening's
emergency decree, since this would al
liamentary majority dubious. The same
parties, however, are equally hesitant
"a ne
ing the Presidents signature to the
emergency decree since this would al
most certainly entail q second dissolu-
ton OF the Reichstag and new elections,
probably with NaziSt landslide. Con-
sequently. 1t Is expected that Parlia-
ment won't reject the same reforms
which 1t refused to legislate,
In France, the overdue deflation cycle
is beginning to gather momentum. This
Is occasioning recall Of French foreign
balances and renewed gold movements
and exchange oscillations with result
ant twitchy Tightening on the money
market. No actual stringency, however,
Is anticipated on the principal markets,
Notwithstanding year-end settlement re-
qu1rements. Belgium has concluded n
Az per cent loan for 10000, 900 with a
Swiss and Dutch banking consortium,
the proceeds destined to liquidate an
812 per cent loan held in the United
States since 1921. French abstention
Is again remarked, Notwithstanding in
ternal capital congestion.
Developments affecting already estab-
lished cartels and the formation of new
ones are a feature of the current sit
uation. The European steel, wire and
rail cartels are all meeting in Paris
this week.
The simultaneous visit to Europe Of
the presidents of the three leading
American rayon companies Is believed
to signify a resumption of discussions
OF the possibilities of stabilizing the
world industry. During November,
2-year accord was reached between
tween the wood pulp interests Of Ger
many, Sweden, Finland and Czecho-
Slovakia, with probable later agreement
by Austria, whereby production will be
limited TO IS per cent of 1929 volume. |
Upon the steel cartel meeting depends
the renewal Of production quotas for
1881.
Scotch Coal Strike.
Observation-Disclosures Is overshadowed by |
the wood pulp interests of Ger
the coal trouble, which has eliminated |
already in q strike of $4,000 Scottish |
miners. There is still some fear that |
others will walk out. The whole diff |
Guilty Is due to the change in statutory |
hours according to the new Coal Act |
without first reaching an agreement be- |
tween miners and operators on new wage |
rates. According to the new law, miners |
will work only se1en and half hours |
day. owners, faced with depression, |
are demanding proportionate wage cuts. |
The Miners Union refuses fatty to &C
cept any wage cut. A last-In:aute |
appeal by the government, which re-
suited - temporary agreement by |
South Wales miners and which other /
English and Welsh mining districts |
decided to follow, Is all that prevented |
q general stoppage throughout the in
dustry on December /. Negotiations |
Tor wage agreements are now under |
way between operators and workers.
Despite these labor difficulties, op-
timism is still marked. Iron and steel |
are dull, but there is some increase in |
the demand for semi-manufactured
London iron and steel exchange.
Paris.-Activity in industry Is falling |
with accelerated rapidity. October iron |
and steel production was down by sub |
stantial amounts for the third consec- |
utive month, and reached 1928 levels. |
Short-time unemployment Is becoming |
Stringent control Of labor |
was established this week, |
and repatriation Of foreign labor now
In the country has begun. Industry Is |
seeking 10 per cent reductions In wages, |
but with retail prices and living costs |
higher instead Of lower than a year ago, |
labor naturally Is resisting the move |
Due to several factors, It Is improb- |
able that France will experience a crisis |
in tensity the experiences
Of most other depression countries. The |
strong financial position, |
both Of the French government and
Bank of France and Of leading financial |
and industries, viii permit |
the country to live from Its own fat for |
! protracted period.
Berlin.-Business has relin0uished all /
hope of recovery before Spring, and the /
country faces the most critical Winter |
since the imitation year Of 1928. The /
only comfort to business is the Arm /
political leadership Of the Bruening ad-
once more manifested in
The issue of the emergency DEGREES en-.
forcing the program for national econ /
1my. After meeting the obligations of |
federal and state finances, the critical
state of municipal finance has become
he main concern. An increasing num-
Der of cities show inability to provide
,over for fresh deficits caused by alarm
ng1y indeeased unemployment ana de-
va0sSAa - WaftAH