Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-19
EUROPE IS FACING
GRADUAL RECOVERY
.OvER NEXT z YEARS
Bottom Believed Reached,
but Real Causes of Anxiety
Stir Trade Centers.
GERMAN UNCERTAINTIES
ADDING TO SHADOWS
Poor British Trade, War in Brazil
and Russian Dumping Mar
Foreign Situation.

Special Dispatch to The Star.
NEW YORK, october 1S.-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending october Is:
Europe.-On top of disappointed eX-
pectations for a seasonal recovery OF
business, there are some real causes
for anxiety and for the thoroughgoing
pessimism which is prevalent In all
commercial centers. The protraction of
German uncertainties and persistent
outflow of capital along with talk OF
q moratorium; continued unrest IN
Eastern Europe; further depreciation OF
the Spanish peseta and reports OF
q sharpening republican movement
against the established regime; the
churlishness of France in abStaining
from participation in the international
credit for Germany; Wall Street. fall
ures and the general weakness on the
stock market; the spread of civil war
in Brazil; fresh alarmiSm, though due
to no fresh evidence, of Russian dump
ing, and pernicious price anaemia on
the metal markets, notwithstanding
improved statistical positions - these
are the outstanding shadows in the
business gloom.
Immediately the international credit
of 125 millions was announced in Ger
many there was pickup on the money
and stock markets. General business
certainty Is not good, but just as GER
tainly is better than business psychology
at the present moment. Business VIII
probably view this Autumn as marking
the beginning Of a gradual recovery ex-
tending over the next two years.
Conditions in Great Britain.
Great Britain.-Last weeks optimism
has failed to develop and business has
dropped back into a state of stagna-
ton, Coal sales have not revived with
the coming of Fall. Even the small IN
dustrial demand is threatened by siren
uous foreign competition. Iron and
steel. after a brief period of slightly
revived business, have returned to
state Of depression. Tin and copper
continue to slump on unfavorable news
from the United States. Hides and
feathers are as inactive as a week ago.
but there Is a fair business In rubber
and on a flrmer basis. Cotton inquiries
are good, but orders are not increasing.
UNEMPLOYMENT on october 6 reached
the highest figure since 1921. AZ
2176,191 it contrasted with 2,161 ,689
on September 90 and with ] POT 200 on
october Z, 1929.
While the Imperial Conference Is de-
batting empire tariff preference and a
quota system for imports news has
reached London that Moscow is con-
templating big dumping campaign IN
England next year.
September foreign trade figures are
disappointing. Total exports reached
only AZ. 74O,6 37 pounds. which Is 12,000,-
600 pounds below the totals for Sep
tember, 1929. Imports dropped 10000
de bal
only "a, 651 ,726 pounds. A part of these
losses is due to falling prices. The
Board of Trade wholesale index on all
articles for September this year was
69.5, which is ISL per cent below the
index for September, 1929.
Prices Irregular in France.
France.-with foreign trade and pro-
duction declining, the gap Is rapidly
widening between rising retail and de-
Ginning wholesale prices. other factors
depressing business sentiment are high
er living costs, the plethora of idle
capital and political uncertainties both
at home and abroad. The August pro-
duction index dropped to f39 from 141
in July. At the end Of September the
wholesale index showed q further drop
of 8 points, while the retail index was
down IL points. Car loadings for the
last week in September were down
$4,000. Gold continued to enter the
country. The reserve is now nearly
81, 000, 00O, 900, while circulation has
scared $5S,0O000 to the unprece-
dented total of nearly $4,000 000, 900.
Despite many Qualifications for pessi-
mism, authorities point out that the
showdown in recent months has not yet
reduced activity below average levels in
1929.
The Franco American Double Taxa
ton Committee has concluded a new
accord, which Is now before Washing
ton for approval.
Situation in Germany.
Germany.-Despite uncertainties, pros
poets for a business pickup are not
unduly disquieting. Hoodlum politics,
which are characterizing the Fascist
and Communist activities, can only be
interpreted as a betrayal of weakness.
Moreover, they are distinctly unrepre-
sentative of the nation as a whole.
Significant development this week is
the pooled working agreement between
the two leading groups of German
mortgage banks-Preussische Central
Bodencredit Aktiengesellschaft and
OBSERVATION-DISCLOSURES Deutscher Hy-
pothekenbankan. This combine will be
a decisive factor in debating German
mortgage credits. OF q total of ST.
SOC, 900 900 German mortgage bonds,
$3.50, 100000 have been issued by the
recently merged companies.