Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-09
FOREIGN ECONOMIC
CONDITIONS BETTER
SINCE NOVEMBER |.
Hardening of Raw Materials
Prices Gives improved
Business Tone.
PICKUP Is NOTICEABLE
IN BRITISH ACTIVITIES.
Germany and Italy Confident Of
Upturn in the Near
Future.
speclal pispatch 70 The Star.

Special Dispatch to The Star.
NEW YORK, November 8.-Cable
dispatches to the Business Week give
the following survey of business abroad
fer the week ending November 8:
EurOpe.-Novenber opened with an
incipient but recognizable improvement
in basic conditions, notably stiffening
of raw materials prices. The extreme
which characterized October have been
allayed and, for the moment, are no
longer a seriously influential factor.
Conditions and sentiment vary consider
ably, however, from country to country.
The best business news comes from
England where merchandising is brisk
and several branches of industry report
distinct pickup notably the long-de-
pressed textile industry. Financial
markets are obviously squaring away
for major war loan conversion opera
ton, which is expected to prove a
stimulus.
In France, hitherto prosperous, the
failure of two medium -Sized associated
banks precipitated q sharp break in the
stock market. The break probably will
prove only the beginning of a longer
decline. Present French conditions are
directly analogous, though to a less
OC6AOC, W bAAOCC IA bA1C O1AlOCQ OJdbCS a
year ago, when the realization abruptly
became Nationwide that the prosperity
boom had ended. Indications now point
to protracted, though probably shallow,
business recession, attended by the PAIN
full process of liquidation of inflated in
ternal levels of values both on COM
modities and securities.
Germany's Problems.
Germany still is In the process of
reconciliation of disturbed conditions
left over from the elections, and is faced
with the immediate problem Of how to
reconcile agricultural relief, whose costs
inevitably are increasing living costs,
with a program for co-ordinated reduc-
ton Of industrial wages and prices. AS
far as Germany Is concerned, the de-
preston seems not to have reached its
local nadir and recovery probably win
begin later elsewhere.
Business in Italy is marking time but
is confident. Spain is expectecAto pro-
coed rapidly and easily toward 'ssahfIi-
zation Of the peSeta, probably without
recourse to a foreign loan.
Central European countries are ex-
pected to show little change from pres
ent low levels, but they will profit in
any general Spring revival. The east
ern agrarian countries are saturated
with Improbable crops. Improvement
here will be slow and laborious unless
world price levels recover.
Taking conditions as whole, the
expectation prevails that Winter will
mark the final phase of liquidation of
the defiation cycle, attended probably
by a greater number and possibly in
Guiding several serious bankruptcies;
greater than usual seasonal strains;
higher unemployment, accentuated by
fiscal difficulties In many countries,
and by waves Of recurrent pessimism
On the other hand, it is expected that
basic conditions will persistently, If ir-
regularly, continue the improvement
which Is already felt. No great Spring
revival is looked for, but steady i'm
provement through next Summer is
likely to be followed by marked Fall
advance.
British Business.
LOndon.-The Federation of British
Industries sums up the British busi-
ness outlook aptly: Forces responsible
for the world collapse Of prices appear
have touched the bottom Of the trough
Of depression. This does not mean i'm
mediate recovery or that there win be
no further drops in individual groups or
individual prices, but forces making for
recovery should now slowly assert them
selves. Nothing can prevent this Win
ter from being period Of difhculty, but
improvement is almost certain in the
Spring" One important government
economist tells the Business Week that
ION most favorable computation, sus-
tanned Improvement OF commodity
prices cannot come before Spring and
the result Of such Improvement will
have no effect on unemployment before
next Autumn"
Despite this gloomy view by experts
the general business tone continues
brighter, with actual improvement in
cotton. manufactured goods and wool,
and with no setback in leather, jute or
hides. Coal shows no improvement, but
the new marketing scheme and proposed
mergers arising from it have promise.
Beriin.-Liberated from the disturbing
influence Of politics and the metal
strike, business for the first time in
many months Is returning to relatively
normal routine. The horizon is still
clouded, however, by conditions which
are marked by an almost complete abb
sence OF the customary seasonal revival
in certain trades and the aftermath
Of recent political excitement In the
shape OF stiffened money market
This stands out in striking contrast to
continuing ettSineSs on most European
markets.
Paris Exchange Break.
Paris.-Failure of the prominent stock
brokerage house-Banque Oustric--and
immobilization of the associated Banque
Adams precipitated a sharp break on
the Paris Exchange this week. Not
understanding prompt Intervention by
Stock Exchange authorities and the or
ganization OF a rescue squad by several
leading Paris banks, the episode was
distinctly unsettling.
Business France finally shows signs
OF becoming vaguely aware, without
grasping the reality of the situation,
that the two-year prosperity boom is
coming to an end Popular realization
seems suddenly to have awakened to
the fact that France is due to share,
perhaps In domestic terms only, In the
general depression on which the country
has looked with little sympathy. Any
thing approaching sudden crisis Is not
anticipated, but the sharp nervous con-
traction Of French business In the last
tnree' weeks, and the general contrac-
ton OF credit--notw outstanding idle
facllities--are destined to continue,
along with steady stock market declines.