Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-17
PREPARATIONS BOND
ISSUE FAILS AS AID
TO FOREIGN TRADE
Expected Stimulus in Finan-
Cial Circles Has Not Yet
MateriaIized.
UNEMPLOYMENT GAINS
FEARED DURING WINTER
Recovery in Commodity Prices
Might Break Downward Swing
in Business.
Special Dispatch to The Star.

| Special Dispatch to The Star.
NEW YORK, August 16.-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending August Is:
Europe.--The financial activity which
was expected to follow the issue Of
Young bonds and provide a much
needed stimulus to business has COM
pietely failed to develop: Business con-
| d1tlonS since their issue have gone from
bad to worse. Nothing In the current
situation suggests early improvement,
and it Is improbable that the usual
| Autumn activity following the harvests
will bring more than superficial relief.
| Anxiety is beginning to be expressed
for the Winter. Unemployment, which
lung to unprecedented levels through
| the Summer, is already beginning
to show an exceptionally early seasonal
increase, foreshadowing Winter totals
which will exceed even last years rec
ords. The British Electrical and Allied
Manufacturers Association has given
the first considered expression to the
belief that no fundamental upturn u
probable before 1882.
On the other hand, any recovery IN
world raw material and agricultural
prices at this juncture of affairs would
act as an appreciable tonic, possibly
breaking the vicious depression circle.
If, however, the process Of adjustment
proves one of sterilization downward to
present low primary values, the long,
drawn-out depression may again strain
economic fiscal currency stability In
many European countries Momentary
conditions are without directional
trends. Business continues featureless.
Agricultural Conference.
The European press is dubious that
| the Jugo-R umanian treaty viii be-
| generally held that it violates OUT
standing INSTRUMENTATION treaties.
The uneasiness of Hungary following
the announcement of the treaty reviveS
the consideration of an AuStro-Hun-
garis,l union with possible extension TO
include Germany. To Hungary this
would be preferable to joining with the
| JugosIavs and Rumanians. The first
reaction from Austria is to speed up
local dormant legislation envisaging
grain flour monopoly within the coun-
try Reactions from Poland viii be
! known following the Polish-Ruman1an
agricultural conference to be held at
Warsaw on August IS. 1t is unlikely
that Poland organically will join aa5
pean agricultural conference VIII De
! held at Warsaw in September and VIII
clarity the whole question.
Great Britain-The prevailing de-
| preston was accentuated by the holi-
| day this week and more seriously by
| the general blow to public confidence
by the rise in unemployment to more
| than 100000. Coal output was FUR.
Their reduced and there is poor demand
with resulting weak prices. The iron
and steel industries are stagnant; hides,
| leather, iute, and some other commodi-
| ties are wholly inactive. Cotton con-
tinued to move on small scale with
restricted production. In wool there
was slight improvement during the
week. The protracted drought mas re-
fiected in the weeks sharp rise In Wneat
prices. Stock markets are dead except
for small movements in mining stocKs'
Unemployment Gains.
During the early months of the year
unemployment was not expected TO pass
the 1000 900 mark until Christmas.
When this number was passed last
week, authorities estimated that by
Christmas unemployment would pass
100000. 1t is commonly realized now
that extreme unemployment Is due TO
world conditions and that more than
local paliatives are necessary. Two
fundamentally important industrial de-
velopments, each designed to promote
l ",
ment is working in opposite directions.
At the annual conference OF the Miners
Federation, application of the spread OF
| hours in the coal industry was discussed,
| while at private meetings of Lancashire
cotton interests. the expediency Of
adopting the labor-saving 8-loom sys-
tenn was argued.
FRANCE.-There is no significant
change in conditions. The price Situa-
ton is still disturbing factor. Bush
ness is slow, but not yet serious. The
predominant development is the con-
tinuance of strikes among workmen
who are protesting labors contribution
to the social insurance premiums with
out compromising wage increases. The
strikers now total 100000, notwith-
standing settlements at individual
plants. Indicative of the small portion
of labor taking part. in the strike Is the
fact that total workers registered ON the
social insurance rolls Is 5000, 900.
Strikers, therefore, represent less than
2 per cent of total registered workers,
| and are spread over so localities.
With living costs mounting steadily,
conditions are believed to harbor later
major wage movements unless the gov
| eminent acts soon to check the in
creases. Foodstuffs in particular are
increasingly expensive, due to the re-
cent tariff, which brought increases on
1
short crops this year is new source
Of worry.
| Decline in Germany.
| GERMANY. Though the country IS
! enjoying short political respite before
the election campaign actually starts,
business continues its undated and
rather accelerated downward movement.
People look with dismay at the unenl-
ploynent figure, which has almost
reached 100000. The stock market
and the coal market are at lowest ebb.
One important factor aggravating de-
preston is the inadequate functioning
of the export valve, which until recently
had secured outlets for German manu-
features. This was vital at a time
when home demand was seriously cur.
tailed. The significance of the drop il,
| manufactured exports in June has
probably continued in July ard Au-
gust. Evidence of the Importance OF
exports to manufacturers is Contained
in the report of the German Machine
Builders Association, which was pub
llshed this week According to this re-
port. exports in 1929 were 81 per cent
OF total production, compared with
| 1928 exports which appropriated 29
per cent on total production.