Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-21
COMMERCIAL GAINS
ARE NOTED ABROAD
DURING LAST WEEK
Seasonal Pickup Stimulates
Sentiment and Further In
. crease Is Expected.
ELECTIONS IN GERMANY
/ ARE CAUSE OF CONCERN
First Feeling of Alarm Over Ex-
tremists' Victory Yields
to Calmer View.
Special Dispatch to The star.

NEW YORK, September 20.-Cab1e
dispatches to the Business Week give
the following survey of business abroad
for the week ending September 90:
Europe.-The more hopeful sentiment
which has been evident in business cir
Giles in recent weeks is beginning to be
translated into actual improvement in
business volume, particularly in the
case of primary materials. Prices are
tending to be firmer. Though the pick
up is not yet beyond being seasonal in
degree, it is stimulating commercial
sentiment and further gains are ex-
pected. Financial conditions are I'M
changed.
The event Of the week is the startling
result of the German elections. While
gains by both extremist wings were ex-
pected, no such chauvinistic landslide
was anticipated. The first reaction in
most business circles was one of distinct
alarm. The Fascist platform advocates
a dictatorship, reputation of the Young
Plan, and revision of German frontiers,
all issues which, if attempted under
uresent conditions, would rock European
foundations. Though attention con-
tinues to be focused on further devel-
opments, alarm is being replaced by the
belief that German political changes are
more apparent than real, and that they
represent primarily an expression of
profound popular dissatisfaction over
the recent vacillating and ineffective
administration rather than any rea-
soned support Of extreme programs.
Developments FOreseen.
Observers foresee three possible devel-
opments In the other of their increaS-
ing probability, they are: Cd A Fascist
effort to displace parliamentary gov
eminent with a dictatorship; (2) for
nation of a center and moderate
Socialist coalition which a majority In
the business world would favor, and CD
q parliamentary deadlock and dissolu
ton before Spring, with new elections
favoring more conservative programs
and depriving the extremists of much
of their spectacular gains last week.
Though immediate administrative diff
culties in Germany were increased rath-
err than mitigated by the election, and
though greater uncertainties are ex-
pected further to prejudice German
business prospects abroad, 1t is notable
that foreign credits in Germany so far
have not been withdrawn. Both Euro
pean and German stock markets, though
they reacted violently downward at
first are resuming their upward trend
which first became evident at the be-
ginning Of the month. Authorities
accept this as an indication that con-
fidence in the prospects for general
business improvement Is not materially,
or at least not Immediately, impaired.
Great Britain.-OptimiSm in the buSi-
ness community is increasing, although
the slump as yet is broken only by
the slightest signs Of improvement. The
iron and steel industry Is improving
and inquiries are increasing. Cotton
spinners are cheered by some revival
of the China trade. Stock markets
are disappointing Rises a week ago
have not been maintained and the
general investing public is not COM
ing in. The rubber market has dis
played unexpected calmness since the
restriction verdict. with both the COM
modify and shares stiffening.
Unemployment increased this week by
1927 to total of 2,139,571. New
conversations have been inaugurated
between Liberal and Labor leaders to
consider relief works which may in
clude large development of telephone
services.
Anxiety Over Elections.
France.-Business men showed no
little anxiety over the results OF the
German elections. Without Disgusting
this uneasiness, 1t is notable, that the
general French attitude reflects, not
so much alarm, as a tendency to wait
and see what happens. Sharp stock
market recovery this week after pro-
longed apathy created optimism, par
ticularly when 1t became evident that
the public was participating. the trend
of French economics, nevertheless, is
toward imitation of values rather than
expansion of activity. In fact, there
is less evidence of seasonal revival in
France than in almost any other
country.
The government has moved to help
the farmer to organize and finance the
orderly marketing Of wheat. The I'M
mediate need Is to get some plan func-
tioning at once because farmers who
were forced to sell the bulk OF last
years bumper crop at low prices are
now unable to carry even the cur
rent short crop.
Germany.-B Us mess sentiment is
deeply dismayed at the results OF the
election which increased Bruenlng S
minority in the Reichstag from is to
l61. Business generally enviSages pro-
tracted negotiations toward the forma-
ton of some kind of coalition govern
ment, If not complete parliamentary
deadlock. The stock exchange reacted
to the announcement of the disappoint-
ing returns in the elections by sharp
drops in the leading securities of from
5 per cent to is per cent.
Unemployment continues at record
levels, though the increase in the second
half OF August was only $4,000, against
90 600 in the first half of the month.
The total number of German unem-
ployed September was 2,870, 900, which
compares with 100000 on that date
last year. Business anticipates an in
crease in the number of unemployed
during the coming Winter to mini
mum of 100000.