Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-28
BUSINESS REVIVAL
SEEN IN EUROPE
Low World Money Rates Are
Factor in improved Con-
ditionS Abroad.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 28.-CabIe dis
patches to The Business Week give the
following swift survey of business abroad
for the week ending January Is:
Europe.-All Europe anticipates a
business revival following six months
of uncertainty eliminating in the au-
spicious settlement at The Hague, con-
current with low world money rates.
The probable infusion of international
capital is welcomed. With difficulties
over, reparations problems in Eastern
Europe ironed out the way is prepared
for regular and more active trading.
despite the economic weakness of some
countries and unemployed surpluses in
others
Observers cite as favorable factors
Recent systematic development of in
fdustrial and business organization, the
extent of physical productive equipment,
the degree of operating efficiency, last
years record industrial and agricultural
trade volume, public purchasing power
and wages-generally higher than ever
in history. Because volume of hexibil-
ity of credit are not commensurate with
the business expansion of the last three
years, it is considered the single DOM
inant factor entailing danger and par
tial business relapse.
Great Britain's Condition.
Great Britain.-Year's trade deficit is
8 per cent greater than 1928, due to
higher imports of industrial raw ma
Cerials and relatively smaller expansion
of exports of manufactures. Coal ship
ments, however, increased, nearly equal
ing value of outgoing iron and steel
goods, and exports of shoes, paper,
motor cycles and automobiles estah-
lished records. Textile exports fell be-
low last years slump.
Recent improvement of business Is
mirrored in economists tabulation of
400 companies which showed increased
profits in the last quarter, notwithstand-
ing some large failures and the stock
crash. These tabulations also indicate
tributions, preferred dividends averag-
ing 51a per cent, common 1917 per cent
and debentures S per cent. Cabinet
Minister Thomas intimates that the
City and Bank of England are prepared
to finance deserving industrial ration
alizations, a move which implies a re-
versal of policies. -.'-'
France.-American oil interests active
in the French market plan cooperative
program to distribute effectively behind
the rising protective tariff. Plan allo-
Gates to Gulf Oil IS per cent participa-
ton; to Atlantic, Is per cent; to Stand
these quotas in furnishing crude oil for
refining and distribution.
Germany's Trade Balance.
Germany-Year's favorable trade
balance of $12,000.000, just announced,
compares with deficit of $500, 900 900
last year and $500. 000,0 900 in 1927. The
favorable balance is due chiefly to the
enlargement of exports, which Is an
indispensable offset to reparationS out
go. Rapid expansion of French Short
term credits is noted. Railways, al
located to the Government by Hague
agreements, expect to benefit by a
lower loan rate than was obtainable
independently. Automobile tire quotas
in the German market are allocated:
Thirteen per cent participation to the
United States, As per cent to contin-
entail exporters, rs per cent to German
Dunlop, equal participation IN the
balance to six others. The Soviet tire
lied, Opel-General Motors resumes
production.
Holland-Rubber restriction again at
tempted. Fresh plan advanced as basis
for discussion with representatives of
British rubber interests proposes estab-
ishment of participating fund-plant-
ers contributing 20 guilders per ton,
natives 2 Dutch cents a kilogram-the
rated production contributions to be
conflscated II the prescribed quota is
exceeded.
Austria-Deep satisfaction and relief
follow announcement of annulment of
reparation obligations, opening the way
for 500, 100000 construction loan which
Will give country fresh start industrially.
Hungary-Business men are satisfied
with the settlement whereby rsparations
will be devoted to reimbursement of
owners Of sequeStered agrarian property
in coded territories until 1943, when
further reparationS will represent only
per cent of the budget.
Scandinavian Sweden the discount
rate Is reduced: industrial activity con-
tinues on top of record year, with
highest postwar trade balance.
In Norway, the whaling season Yields
income estimated at los 900 900 crowns,
compared with 1928 record of $1,000
600. Fishing netted 100000 crowns
above the normal annual valuation.
Poland-New Bartel government in
cludes renewed consideration Of the
Hartman Identification project. .
RuSSta-The government Is exporting
wheat despite a shortage Some
observers interpret this to indicate the
pressing need for foreign exchange.
others that it is simply expedient to
avoid difficult long train hauls within
the country.