Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-06

salaries to public employees of 2.5 per
cent instead of 4 per cent; instead of a
taxation of private employees, surtax
on all incomes exceeding $4,000, which
will Weld S33.O00,000, instead of the
earlier schedule to yield $4,000, 900;
and a reduction of expenditures and
minor items from $115,000.000 to SAP
OOO,O 900. The modified program Is likely
to be accepted reluctantly by majority
in the Reichstag who are now terrified
at the prospect of general election. DR..
Dietrich stresses the Importance of
CARRYING out the refunding of the float
ing debt in accordance with the De-
cember schedule in order TO protect
German foreign credit. Financial eX-
perts in Berlin question whether Diet
richs financial program is adequate;
assert that the final deficit of the Fed
eral budget is likely to exceed even the
latest official estimates.
Negotiations Have Failed.
General negotiations between indus
trialists and labor leaders have failed,
mainly due to apprehension of the lat
ter to give their consent to a general
wage cut because they fear it may
strengthen Communist propaganda, pro-
claiming trade unions are betraying the
working class. Negotiations are expect
ed to be continued by trade groups, but
immediate concrete results are doubtful.
Following the last cut in the bank
rate there has been an abundant sup
ply of domestic call money which mas
caused a reflux of foreign short-terms
credits and subsequent adverse move
ment of dollar exchange The develop
ment is viewed without alarm, cons1d-
ering the Reichsbank's gold and foreign
exchange plethora and the pending
fresh influx of foreign funds IN July
due to the arrival of proceeds from the
German quota of Young bonds ana
other loans. .
The industrial situation in Belgium
is unimproved. Steel producers are as
cussing an arrangement with BrlCisli
merchants covering the British market
and British merchants are reported 10
have agreed to obsedve carter prices
and not to encroach on territory re-
served to particular cartel members.
The situation in the window glass
industry is unfavorable. with heavy
stocks accommodating, demand weaken
ing, and competition keen. Brokers OBJ
iect seriously to the formation of the
Fourcault combine, but plans are ex-
pected to go through as reported. The
plate glass market is still strong, due
to the strict control OF the union IN
limiting production and maintaining
prices. Coal demand is weak and stocks
are accommodating.
Business remains unchanged in Italy
with no marked improvement expected
before Autumn The May budget shows
a credit balance of $5,500,000, thus re-
ducing the years deficit to $6,875, 900.
It is expected that the budget will be
balanced when returns through June 30
can be announced.
Resentment over the American tariff
is reflected in the speech of M. Turati,
Fascist party secretary. at Bologna, and
in the increased duty on automobiles of
SIT on machines weighing from TOO to
1900 Kilograms, of $85 on those above
1900 Kilograms. This trebles the former
duty.
It has been confirmed in Rome that
a credit of $10,000,000 will be opened
for three years and guaranteed by the
Italian government up to rs per cent
for exploration Of Italian products to
Russia,