Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-06
indications of Spring Revival
Are Seen in Various
Countries.
COMMODITY PRICE DROP
HAS DEPRESSED TRADE
Cheap Money Acts as Aid in Re-
storing Confidence in
Outlook.
BY the Associated Press.

BY the Associated Press.
NEW YORK, April 5.-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending April &:
Europe.-Relatively speaking, busi-
ness is improving. Winters accumula-
ton of purchasing power has this year
been seriously curtailed by evaporation
and fall Of commodity values. With
this evaporation profit margins, both
agricultural and industrial, have been
lost. Unemployment has reduced wage
savings. More goods and less wealth to
buy them have resulted. Absorption
must precede revival, and this will take
time. On the other hand, there are
indications that price levels have hit
bottom and are hardening. If present
cheap money were withdrawn, the
gloominess Of the business outlook
would be accentuated to the depression
point. Given the relaxation now in
course, further recession of activity is
not expected, but 1t Is unlikely that sea-
sonal recoveries will approach last
years exceptionally high rate or more
than equal 1928 business volume.
Great Britain.-BusinesS sentiment is
more irregular. If it is less buoyant
than during the past two weeks, when
successive bank rate reductions encour-
aged greater optimism than probably
was Substantiated by actual conditions
there is no tendency now to revert to
the extreme peSsimism of preceding
months. Once the budget uncertainties
are removed, the tariff policy an
nounced and the tax burden established,
there will be real opportunity for q
careful Stocktaking of realities. The
past fiscal year closed April / with a
deficit Of $72,000,000. Estimates for the
coming year forecast the necessity of
5000 100000 additional revenue, but the
actual extent and the kind of increased
taxes cannot be known before the bud
get bill Is announced, April II.
Unemployment Problem.
Unemployment, now 1922, 900, has
reached its peak since 1922, but indica-
tionS Of seasonal revival now are more
apparent, with relatively cheaper money
and renewed long-term capital activity
favoring enlargement of consumption,
particularly Of goods for capital ac-
terial and machinery. More plentiful
money also will enable industry to con-
ttnue to reorganize and take advantage
Of any trade expansion.
The textile industry faces new labor
problems. Wool operatives may strike
as protest of the Macmillan Commits
sion findings involving per cent wage
cut. Cotton operatives are disturbed
over the proposed extension system ex-
pected temporarily to displace labor but
which will go far toward enabling in
dustry to recover its competitive position
with eventual benefit to the unemployed
in the textile industry. now the largest
category Of Britain'S voorhees,.
Germany.-The new Bruening cab
met, composed Of bourgeois elements,
represents the badly needed business
mans government" but, unfortunately,
it is politically sandwiched between
Socialists and FasciSts, and Is depend
ent for a majority upon the moderate
wing, the German Nationalist.
Despite the fact that the new cabinet
includes three new ministers who voted
against the Young plan, Bruening and
Curtius promise continued adherence
to the plan. Inclusion of Herr Schiele,
noted agro-economist and leader of the
Nationalist, as food minister may pres
age still more radical farm relief
measures than the tariff increases
passed last week and already effective.
Attention already Is focusing on the
ambitious program Of declaration and
credit relief for East Prussia. The new
minister, Bredt, leader of the so-called
bility of early partial de-control Of
national artificial rent restrictions.
An international conSortium, which
includes Lee, HigginSon, will advance
credit totalling $116,000,000, first part
available early In April, the second in
mid-June, thus permitting substantial
reduction of the floating debt and cas-
ing Of the immediate tight position of
the treasury. Despite the political crisis
and little, If any, seasonal activity, bust
ness is somewhat more optimistic due to
the renewed foreign participation in the
bond market, the success of the $20,-
900, 900 Rhine Westphalian issue foated
in New York, and the expectation that
credit forthcoming will relieve the
money market of the constant pres
sure Of government borrowing.
Commercial failures still continue at
a high level and this week include out
standing Hamburg leather firm Of Loges
& Rasmussen, with liabilities of $4,-
100000 and involving Is German and
British banks.
Situation in France.
FRANCE.-Businessi is confident, not
withstanding reports of decreased
activity in some trades and failure of
the Senate to pass the budget bill be-
fore expiration of the fiscal year end
IlGCcSolIdJAlS ICCOuAOC W
monthly appropriations at least for
April. Preliminary announcements of
proposed declarations cause some conf
dence. AS a result of successive false
starts, the stock market, under efforts
Of professionals to break public specu-
lative lethargy, has petered out. It is
believed the government Is DESTROYS of
holding the market confident, but in
suspense till it is determined what dis
position it desires to make of the Young
bonds, expected to be issued in May.
There is probability that the total of
500, 100000, Frances share, will be
issued to the federal debt sinking fund
ONCE as basis for exchange CONVEX
sion Of outstanding 5 per cent and 6
per cent domestic bonds. Meanwhile
bond issues, though below the Feb
ruary peak, continue to absorb capital,
the total for the past IS months now
exceeding $500,000,000 Short-term
money still is overabundant and tending
to 4ower levels. The Chamber OF
Deputies has ratified the Young plan
by practically a unanimous vote. The
Senate Is expected to follow suit.