Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-24
Usual Autumn Quickening of
Industry Is Now Looked
For.
COMMODITY PRICE DROP
is BELIEVED NEAR END
Hardening Of Money Rates Pre-
dicted if Expected Upturn
Develops in Europe.
Special Dispatch to The star.

opeSiHA O1SpaCCu 70 Tne STAR
NEW YORK, August 23-Cable dis
patches to the Business Week give the
following swift survey of business
abroad for the week ending August %:
Europe.-Business sentiment is more
confident this week, largely in antici-
patton of the usual Autumn re-
Vlval after q Summer 1ull. On the
other hand, business actualitieS are
monotonouSly unchanged, with no trend
observable toward a better or worse
situation. Neither of the two condi-
lions considered prerequisite to basic
Improvement have yet been fulfilled:
I'd recovery Of primary prices; CD q
renewal Of capital investments. The
downward trend in prices. it is true, has
slowed up In recent weeks. Mineral
and metal prices, for instance, have
definitely struck bottom, it is believed.
There is considerable uncertainty in
many other commodities. however.
especially those influenced by maturing
crops, such as foodStuffs and cotton.
Moreover, retail price levels, supported
by cheap credit, have failed to decline
proportionately. Either further retail
declines, involving trade losses and
suspended commitments will now fol-
low, or basic prices will move up, or
both, before equilibrium Is re-estab-
lished.
Frances Position.
Meanwhile, the almost complete IN
activity In principal European financial
countries has afforded no leadline
wherewith to fathom the depth of re-
serve capital resources. A plethora of
short-term facilities, at unnaturally low
rates, may as much measure restricted
h. %
cumulated idle funds; 1t does not neceS-
sarily measure the availability of funds
for long-term investments. opinion is
that rates would harden sharply in the
wake Of q moderate demand for ex-
panding business.
Great Britain.-BusinesS remains
dull beyond even the usual holiday
level, although an improvement Is hope
fully expected in the next two weeks
after the end Of the holidays.
Although the best degree Of activity
reported by any industry is "only fair"
the frequency OF comment in market
reports to the effect that conditions are
now sounder in point OF interrelation
OF supply and demand to prices, strikes
a new and encouraging note. Finan-
cial activity, however, els at stand
still. Money has again turned slack
at IA per cent (demand). Continu-
ance Of low rates Is indicated. Sterling
exchange Is maintaining It's recent i'm
provement. With gold expectations
dwindling, the position Of the Bank Of
England Is easier.
Coal Production.
Among the key industries, coal pro-
duction continues to exceed demand,
while export ship rates are the lowest
since 1909. Iron and steel demand Is
still in the hand-to-mouth stage.
Prices Of pig and Cleveland iron are
reduced in the hope that Autumn
orders will be attracted.
Uncertainties in the cotton price sit
uation and troubles in the Far East
are further contracting an already
severely restricted activity in Lam
cashire; Bradford WOODEN mills are OBJ
serving a holiday shutdown.
July foreign trade showed some re-
covery, which exports valued at FISH,
100000 gaining 90 per cent from the
June low, but still representing the
second lowest month Of the year. I'M
ports improved by 100000.
France.-The three-day Annunciation
holidays have caused general business
pause in France this week. The strikes
in Northern France are tending to be-
come localized ut Lille and Roubaix, but
are. becoming intensified.
Basically France Is entering q period
of disturbed values of which strikes
over wages is only one indicationf So
far, general activity is still markedly
favorable over the entire country but 1t
is slowly contracting; it is becoming
evident that the cycle Of prosperity,
which has lasted two years, has passed
its zenith.
German Trade Improves.
Germany-Improved foreign trade as
reflected by July figures and q measure
Of stock market recovery after the re-
cent sharp decline are two encourage
ing developments following months OF
monotonously unbroken reports OF in
tenSifying depression. Basic conditions,
however, give no sign of an early gen.
eral improvement
The government apparently intends
to revive action toward reducing prices
established by cartels.
OF more immediate actual importance
is the decision of the Rhur mine own
ers to cancel wage agreements Septem-
Der 80. The industry hopes that labor
will consent to 10 per cent wage cut
in combination with q corresponding
reduction in coal prices. The cut would
affect 900 miners already working
on short time. Experts, however, ques-
ton whether the intended price cut,
averaging / mark per ton, Is enough
to counterfeit increasing imports OF
cut-price British coal.