Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-13
SEASONAL REVIVAL
IN EUROPE'S TRADE
|. LATER THAN USUAL
General Trend Toward I'm.
provement Is Noted in
Leading Centers.
INVESTMENT ACTIVITY
SHOWS RECENT GROWTH
Money Rates Stiffen, With Demand
for Securities on Broad
er Scale.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. April 12.-Cable dis
patches to the Business Week give the
following survey Of business abroad for
the week ending April IL:
Europe-SeaSonal revival Is later
than usual and is not comparable in
degree with last years pickup, but the
general trend is one of improvement.
In England business expansion awaits
announcement of Snowden's budget; in
France, particulars of Tardieu's promised
tax reduction; in Germany. political
stability for realization Of financial re-
forms and farm relief.
Money has frightened somewhat in
England, but remains easy in France and
Holland and comparatively so in Ger
many. Recent renewed investment &C
tivity continues. This fortunate devel-
opment is indispensable to the revival
OF capital expenditures and of de-
pendent interests. Sentiment Is not
buoyant, but it is manifestly more con-
fident.
Improvement Noted.
Great Britain-The incipient in
crease in industrial activity during re-
cent weeks Is noticeably widening,
though 1t has not yet deepened. Coal
has entered a seasonal decline, but
NoAACA PLOAAt Vic 1hSb QudI GCI
is calculated by the department of
mines to be $70OO0,OOO The situation
in iron and steel has improved slightly;
cottons are better, and Manchester
trade is reviving; wool is more freely
bought, since no serious interruption
over the wage dispute is feared now.
Greater Wall Street activity has COM
bined with local factors 10 contract
the supply of money and to stiffen
rofoc pI1eiraecR foole hof Ia.,4
ample money Is preferable to a NOM
inally cheap bank rate with scarcity Of
funds.
Volume is lower on the stock market,
but the tone is confident and buyers are
receptive to current and coming capital
issues.
Although the agreement to restrict
tin production is worldwide, the market
Is baff1ed by the failure of statistical
position and prices of the metal to re-
dect curta1lmenC OF production. 1t is
rumored that a bank consortum has
been formed to buy and hold tin for a
rise in price. The coal bill, after last
minute amendments, passed the Com
mons as result Of Labor Liberal
working agreement, but it is expected
to undergo radical revision in the House
Of Lords.
Political Uncertainty.
Germany-Political uncertainty con-
tinues to be the outstanding feature
of the general situation, with defeat OF
the new Bruening government, diSsolu-
ton OF Parliament, and new elections
a constant possibility. Hope that the
Rruening government would end the
deadlock over pressing tax measures is
unrealized. The government has given
up all attempts TO increase workers
H~;k I'D to dole deficits
but is caught in the opposite dilemma
of militant opposition from BavarlanS
over the increased beer tax, upon which
the government depends for nearly one
half of the increased revenues, but
which falls primarily upon Bavarian
industry. Bruening in aggreSsively
tackling current problems has declared
for priority of the finance bill over
farm relief measures and Is backed by
Moldenhauer's refusal Of responsibility
for the treasury to meet cash liabilities
next quarter-end unless tax measures
are passed before Easter.
There are indications that business
revival Is awaiting political stability.
Despite political uncertainties, recent
strength on the bond market has spread
to the stoc kmarket, which sustained
higher levels over the week end. Farm
products values recovered signify iol-
lowing tariff increases, although prices
of raw materials and manufactures
tend further to decline and coal and
steel activity Is unsatisfactory:
Following the recent striking bank
and Shipping consultations, the auto
mobile industry Is believed next IN
order, but not through mergers within
the industry other than incidental.
Rather, strength will come from IN
cooperating automobile and steel IN
dustries, the latter eager to reorganlEe
and strengthen this important customer.
An advance scored by stocks OF the
leading MISUNDERSTANDING benZ,
Bayerische Motorenwerke and N. A; u.
Evidences approval Of public opinion;
Similarly. further absorption Of coal
mines by the steel industry Is expected
to result from difficulties in reconclling
independent and mixed interests during
negotiations to renew the expired Runr
Coal Syndicate, which was prolonged
bv the minister of economics In order
to give time to complete a new agree
ment.
Activity in France. ...
France Business, which showed
scarcely more than seasonal WINTER
lac. Notwithstanding worldwide depres-
sion. Is resuming general activity. The
stock market is stirring. Optimism Is
stimulated by final ratification Of the
Young plan, particularly by ofhcial an
nouncement that the bill providing
$50, 600 900 tax reductions and favortnS
production and financial operations, Will
be submitted to Parliament in mid April.
It is expected that the dividend tax on
domestic shares will be reduced from
Is per cent to Is per cent, on foreign
shares from IS per cent to 20 per cent,
while the tax on security transfers,
based on the average market price
during the preceding year, and now tie
principal burden suffoCating the stock
market-since, in extreme cases. the tax
can exceed dividends-iS expected to be
reduced from 4 per cent to 2la per cent.
Textile manufacturers in the Lyons
district Joined Calais and other centers
in protest of United States lace duties.
The government has instructed its Am
baSsador in Washington to protest, and
Commerce Minister F1andrin, notori-
ously hostile to the United States, has
stated publicly In the French Senate
that the new lace duties are charac-
teristic of United States policy and
aimed to stifle imports from Europe.
French opinion Is uniformly convinced
of unfair treatment by the Omitted
States in demanding payment OF war
debts while discriminating gainst .x-
ports of French products, which are al
legged to be necessary to enable france
to pay. There Is considerable senti-
ment for retaliation. Negotiations
between the United States and France
on double taxation are announced to
begin early in May. It Is likely to be
an arduous task II present feeling con.
GnueG TO prevail.