Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-13
CROP LOSSESH|GH
AS STORMS SWEEP
PARTS OF EUROPE
Review Shows Industrial Out
put and Business Are
Little Changed.
GILT-EDGED SECURITIES
PROVIDE BRIGHT SPOT
Details of New Automobile Tax in
Italy of Vital Concern to
United States.
Special Dispatch to The Star.

|
NEW YORK, July 12-Cable dis
patches to the Business Week give the
following survey of business abroad for
! the week ending July IL:
Europe.-Business is dull. Industrial
| production in general remains little
changed: Stock markets are stagnant,
| but with gilt-edged securities providing
| one bright spot. Heavy storms last
week were disastrous to crops, particu-
larly in France, Germany, Switzerland
and Greece. Otherwise doldrums pre-
| vail
The International Steel Cartel an
| nounced that complete accord has been
concluded by its members for the crea-
| ton of selling bureaus for semi-finished
| products and for structural steels. The
bureaus will centralize all orders and
| transmit them to their respective ma
| tional bureaus, already in existence In
France and Germany and soon to be
created in all other adhering countries.
Orders will be prorated according to the
| quota of each participant.
Unity OF interest is strengthening
| the German-British-B Belgian copper
| block. Though a boycott of American
copper has been proposed, inside au-
thoritles consider such a move imprac-
! tical and anticipate only strengthen
ing of the copper association to present
| a united front.
The International Nitrogen Confer
! ence, meeting in Paris, has settled i'm
portant differences of view regarding
| production quota assignments, opening
the way for negotiations between the
synthetic makers of Europe and the
natural nitrate industry of Chile.
Business Better in Britain.
Great Britain-The general tone of
| business is better, but commodity and
stock activities are unimproved. The
bankers resolution favoring protection
| through tariffs is the dominating event
of the business week and suggests a
turning point in fiscal history, since it
| follows a similar about-face by the
Manchester Chamber Of Commerce.
With these strongholds OF free trade
now in revolt, general election may
be precipitated. Chief Significance of
the bankers resolution is the signature
of Mr.. McKenna, chairman of Eng
! lands largest commercial bank, ex-
Liberal chancellor, and lifelong free
| trader. This divides the city into two
camps-the free trade group supported
! by Gov. Norman of the Bank of Eng
! tariff, now supported by the McKenna
/ group.
Barrow Haematite Steel Co. plans re-
construction involving new capital
totaling Sl,000,O00; United Steel Co. S
reconstruction will involve organization
| OF new company to be capitalized at
| $35,000.000. Imperial Chemicals have
denied runsors that they are in a shaky
cash position. The suggestions got
abroad when 1t was said that Lord Mel
chett was raising $5,000,000 through
the Bank of England. Public confidence
in this rationalized industry, however,
has been seriously shaken by the rumor.
Germany's Tax Problem.
Germany-Indefnite delay of con-
/ certed action for the lowering of prices
and wages. improved chances that DR.
! Dietrich'S taxation program will secure
parliamentary majority, thus giving
German public finance much needed
| breathing space till late Autumn, and
undated business Representatives,
are the features of the current business
week in Germany. The stock exchange
is particularly depressed by rumorS
that the two big shipping companies
Hapag and North German Llo4d-will
be forced to pass dividends for the cur
rent year due to unsatisfactory earn
ings.
Though these rumors are officially
denied and all surmises regarding divi-
dends are declared premature, it is gen.
orally known in all business circles that
earnings of all shipping companies I'M
| doubtecpy are considerably below last
years record. because of the upset con-
ditions in the freight market. The
business failure of Schuchardt &
Schultz, leading German machine-tool
dealers, with an extensive sales organi-
cation spread over Europe, which rep
| &c nIe
machine-tool manufacturers, contrib
utes to the general business pessimism
| The General Motors-owned Opel A.
| G.. has issued an optimistic report
| boaSting an increase in sales for the
| first six months of the current year of
| IL per cent compared with a decline in
J total German automobile sales in the
same period Of % per cent.
Trade Spotty in France.
France-Business proceeds unevent-
fully, but is showing remarkable general
resistance to adverse conditions which
| are now becoming more apparent be-
cause of the seasonal showdown. Ger
tain branches Of production are begin
ming to suffer, as Is evident in falling
prices OF numerous commodities. de-
Ginning foreign trade, increasing wages
and narrowing profit margins, especial
| ly in the iron and steel, automobile and
textile industries.
1t is apparent now that France
whose economic activities were at a
maximum during 1929, the acutest
period of the world crisis, will ex-
| perience serious difficulties in readjust-
ment when other countries are well on
| the road to recovery. The industrial
policy which Is striving to maintain
the present wage, price and production
levels, Is considered harmful now, for
! 1t handicaps France in international
| competition at a time when foreign
trade has become increasingly vital to
prosperity.
French trade with the United States
is diminishing. Imports during the
! first five months were $199,000,0 900, a
drop of $13,000,000 from 1929. Exports
for the same period were $4,000, 900, a
decline of 100000. Meanwhile pur-
chases from Germany rose $4,000, 900.
Italy-Effective at once, a new sales
tax of liz per cent will be levied by
the Italian government on all sales, to
provide funds for national defense and
public works. There has been general
sales tax of u per cent on sales of all
products except foodStuffS
OF most vital importance to Ameri-
cans are the details of the new auto
mobile tax To cover the new tariff,
Ford. Essex and Chevrolet, which for
merly sold for $1,000, will now cost
s., 300 Nash, Hudson and Chrysler rs,
which foxmerly sold at $4,000, now go to
40 al I'd iyann