Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-10
Prevailing Lethargy in Indus
try Is Emphasized by
Summer Dizziness.
RISING UNEMPLOYMENT
ATTENDS TRADE SLUMP
Numerous Wage Disputes Crop Out
in German and French
Plants.
Special Dispatch to The Star.

NEW YORK, August 9.-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending August g.:
Europe.-The Midsummer lull ac-
centuateS general depression. Business
is operating within as narrow volume
as it has experienced since the first
postwar recovery. Notwithstanding re-
stricted industrial production, primary
stocks continue to grow. This is par
ticularly the case with coal-nearly 49,
100000 tons in all Europe-ferrous and
non-ferrous metals and textiles. On
the other hand, extreme conservatism
IN the dlStributive trades has resulted
in low warehouse and shelf stocks,
which forecasts prompt replacement de-
mand when confidence returns. No
early change in conditions, however, is
foreseen. Considering how widespread
and long-lasting the depression has
been, 1t is notable that large bankrupt
cies so far are exceptional
With business idle. the week has been
featured by the elimination of several
Efforts to retntegrate various business
organizations. The European steel car
tel, though momentarily practically
abandoned, is making efforts to control
runaway markets through the establish
ment OF sales comptoirs for certain
products. Synthetic nitrate producers
have reached a preliminary agreement
winch may serve as basis for the car
telization of the entire European indus
try and prepare the way for further ne
EQUATIONS with Chilean producers of
natural nitrate for world accord. World
zinc producers likewise have reached
an agreement to restrict production and
stabilize prices. Only Dutch and British
rubber growers have failed to reach
effective agreement.
Crop Conditions.
Stock markets continue dull. Money
is easy. Harvests are nearing compile
ton and there are prospects that last
years high totals will be duplicated.
But where last years crops were evenly
distributed, this year Western Europe
notably France and Italy-faces serious
shortages. while Southeastern Europe
notably Rumania-is reaping an ALL
time record harvest Notwithstanding
balkan SURPRISES are adequate to cover
dehciencies in Western Europe, there is
every probability of larger and earlier
imports and that these will come from
overseas rather than from the Balkan
grain states, because of immediate low
carry-overs and the probable inability
OF the Balkans to store and finance
their crops on the market.
Following the increase In automobile
duties In Spain, Ford has closed his
Barcelona branch.
British Depression Spreads.
Great Britain.-Business starnation
is undated. A few slight improvements
IN holiday shipments are stimulating
the Welsh coal industry, but other fields
are still slack. Iron, steel and cotton
are dull. Raw wool prices have not vet
renected recent trade activity. Wheat
showed sharp decline
Depression Is spreading. Following
unpleasant symptoms in home rails last
week, bleak rumors Of the bad position
OF West End retail stores are now roll
ing up. London looks at the business
OF these stores as sure index of public
spending power. Another proof of de-
Ginning revenue is the report of dimin-
lshlng returns on newspaper advertise
mentS. The stock markets are dead ex-
cept for occasional bear selling.
Rising unemployment and the virtual
bankruptcy of the state insurance fund
resulted In the formation of a three
party committee to advise reformation
OF the scheme. This is regarded as sec
ondary to the major problem of how to
provide employment. The motor indus
try is clamoring for retention of duties
to enable them to flood the market with
cheaper cars.
Despite the lack of trustworthy signs,
the opinion prevails that there will be
a late Fall revival, but there is no real
confidence that this will come without
a change in administration.
Wage Parleys i'm Germany.
Germany.-Political issues. elections
which are now set for September IA,
general reshifting of political parties,
already too numerous. overshadow in
public interest the weeks economic de-
velopments. Business is not showing
signs of betterment.
Attention is conferred on wage ne
gotiations in various industries. The
threatened dispute in the Northwestern
steel industry has been avoided by en-
ployerS and Christian trade unions. In
recent meetings they have agreed to
prolong for another year all existing
wage and time agreements Though
Socialist trade unions have denounced
the agreement and will refuse to adhere
after October l, this action is due
mainly to tactical political motives.
Ultimate settlement is anticipated, as
conditions in the labor market are too
unfavorable for employees to risk an
open fight st the present moment.
The government is endeavoring to
stimulate depressed business by an ex-
which will be supervised by specially
formed and government-owned German
public works company.
French Trade Decline.
France.-Recent reports of declining
activity are beginning to find statistical
confirmation. June totals for coal,
iron and steel production, carloadings
for the first half of July and railway
receipts all are distinctly lower. Out
standing immediate development is the
difficulty to enforce the new social in
surance laws Previous rising living
costs had already provoked labor I'M
rest and demands for wage revisions.
AT this juncture attempt to collect
labor's share of the insurance premt-
ums has precipitated strikes.
Labor contends that employers are
adding their own premiums to prices,
whereby labor pays, not only its own
premium, but shares the employers
through higher living costs. Though
the law is unpopular, the main diff
Guilty is that it is imperfectly under
stood and conSennentlY is distruSted.