Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-05
Reactions in U. S. to German
Elections Decrease Invest
mentS Abroad.
MERCHANDISE STOCKS
APPARENTLY DEFEATED
Period of Low Prices and Losses
Believed Ended-0utlook
Better.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 4.-Cable dis
patches to the Business Week give the
following survey Of business abroad for
the week ending october A.
Europe.-The encouraging upsweep in
business earlier in the month has given
way to another period Of uncertainty
and suspended commitments. Although
the basic economic conditions are shap-
ing for the better, and from this point
on would probably support definite, II
slow, recovery, the latent improvement
cannot make Roadway against new
political tensions which have grown out
of the German elections and the I'M
certainty Of further developments and
the spread of chauvinism in Poland,
Jugoslavia and Austria. Another I'M
steadying factor is the varying nervous
reactions in the United States to the
German elections, to Russian dumping
and the Sisto failure. There is even
succumb to another wave of panic and
hysteria. Sooner or later, accumulated
unfulflled requirements will find ex-
preston. To this may be added IL
months unspent purchasing power
which has been accommodating during
the recent restricted period Of conSump-
ton. Stocks of raw materials, except
ing coal and iron and steel, have been
materially reduced some of them to the
point where any revival Of demand
would occasion shortages. Merchandise
stocks are thoroughly debated to hand
to-mouth levels. Prices on primary
materials are believed to have reached
levels where further changes would be
in the nature of normal fluctuations
around a consistent average. In short,
the period of defiation and losses is
ended.
Favoring revival from this point is
the extreme plentifulness and cheap
ness of money, the necessity for re-
stocking requirements and the re-
sumption of suspended new enterprise
and capital investment.
British Business Dull.
Great Britain.-Britain's trade posi-
much out of spirits. Coal shows slight
in some qualities, but
there is still no widespread develop
ment Of general demand. Iron and
steel is fiat. Despite textile price cuts,
demand Is not picking up. Money re-
mains easy with no demand either by
investors or by trade. German and
Australian financial difficultieS and the
break on Wall Street have caused
marked reactions on the stock ex-
changes.
London attributes uneasiness of to
metal market to Wall Street depression
and reaction to the German elections
The bears, active all week, seem to
overlook moves which are under way
now to cut down production and cur
tail visible supplies of tin.
The general trade position Is strong
ly overshadowed by semi-political move
ments preparatory to sessions of the
imperial conference, which opened Wed
nesday. Business has reacted favorably
to two significant moves. The first is
the joint memorandum from the Fed
Grafton of British Industries and from
the Trade Union Congress suggesting
that the conference set up a permanent
empire secretariat with a permanent
empire trade conference. The second
is the formation of the National Coun-
Gil for Industry, backed by such lead
ers as Sir william Morris, Lord Melchett
and Sir Robert Horne, in all of whom
business has confidence and respect.
Germany's Financial Program.
Germany-Already weakened by Sc
we're depression, business Is struggling
desperately against the combined ad-
verse influence of the crisis in German
credits abroad and new heavy deficits
in the federal budget. Political chaos
has caused disastrous repercuSsion on
domestic stock, bond and money mar
kets. Withdrawals of gold from the
Reichsbank since the election are said
to exceed 103,000,000 marks. Unem-
ployment increased nearly 100000 in
the first half of September, raising the
total to 2,983,000 These reports cast
Cd oil ht,c Ia cf
week.
Following prolonged closed delibera-
lions, the government announced Tues
day night a striking program of finan-
cial administrative reform. Drastic cur
tailmentS of public expenditure are out
lined. The government realizes the i'm
possibility of providing immediate cover
for the fresh deficit during the current
fiscal year, estimated as high as $780,
600 900, and has proposed to distribute
the deficit over the next three years by
means of banking credits to be negoti-
ated. Herr Luther's visit to the United
States is linked with the project to
secure bank credits Of 100000, 900 to
cover the prospective deficit.
Main features of the reform program
are: % the President and federal min
listers agree to q 20 per cent reduction
of salaries, and invite members Of the
to agree to the same reduc-
tons; salaries Of all other public en-
ployes to be reduced by 6 per cent, the
yearly economy Of this move to total
like 80 million dollars; CD
federal revenue to be curtailed by $685.
0o0, 900 by transferring certain items
to states and communes; (3) reorgani-
cation of unemployment Insurance. to
liberate- the Reich from direct subsidies,
saving of $60,000,000 and
leaving only the so-called emergency
relief, estimated at $780,
900 900; a. increase in the tobacco
tax to yield $40.000,000; 60 radical
curtailment of appropriations on all
government departments.
France.-Business is routine in char
acter, evidenc1ng neither any tendency
to improve or retrograde. Sentiment
Is not alarmed over the German situ-
alton though uneaSiness Is growing. r.
ritation was occasioned by the failure
of the naval negotiations with Italy and
the British note suggesting arbitration
looking toward compensation of Brit
ish holders Of French franc war bonds
for the subsequent exchange deprecia-
ton While France herself last year
brought arbitration proceedings against
] 'slavia and Brazil on behalf of
IN holders of pre-war bonds, pro-
ngs which The Hague court sus-
d, these bonds contained gold or
exchange clauses, whereas the
lch bonds held in Britain are ex-
SEQ in francs only.
The Cinema Control Commission has
81 wed the recently initiated Franco
q man Aim agreement pending the
he ing on protests Of American inter-
et who claim the agreement !. dis