Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-02
FOREIGN BUSINESS
LEADERS CHEERFUL
Feeling of Optimism Declared
to PreSage Greater Activ-
ity in Trade.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, February Gable dis
patches to The Business Week give the
following breezy survey of business
abroad Tor the week ending February l
Europe-Preoccupied with local prob
lens, business shows no immediate re-
action to the successful conclusion of
The Hague conference, despite a gen.
eral feeling of satisfaction and opti-
mism among business leaders. AS
plentiful as mushrooms after the rain
are reports in various capitals of inter-
European and European american loan
negotiations. All of which presages the
coming OF a period Of reStimulated
trade activity.
Great Britain-Business is hesitant
due to fear of budget difficulties and
uncertain future of McKenna automo-
bile duties. Manufacturing and mer-
chandisfng are averaging we'll Textiles
is the only major industry seriously de-
pressed.
Depressing Factor Gone.
Settlement of the HAIRY case removes
one strongly depressing factor of re-
cent months. Premier Macdonald an
nounces formation of an economic adj
visory board as a permanent part Of
government machinery, and assumes
the Craftsmanship.
A large number of tin mines are adj
herring to the week end shutdown and
thus are restricting production. Brit
ish-Dutch rubber restriction commit
tee formed.
Germany-The political crisis antici-
pated after The Hague conference
has not materialized. Moldenhauer's
SOLDERING expose of national finances
places emphasis on budget reform as
the first essential in business recovery.
Unemployment is increasing. Before
consideration of business tax reductions
is possible, Germany must face a year
of hard work with profits devoted to
dehation Of outstanding short term
debts
Large Credits In Jeopardy.
Inside information regarding the
failure of the British Lena Goldfields
concession in Soviet Russia intimates
that outstanding credits of participating
German equipment manufacturers, to-
falling S4,25O, 900, are in jeopardy Sic
mems & Halske are reported to be ne
gotiating with Dillon Read for q loan
of SIS, 000, 900.
A combine Of German potash pro-
ducers for closer collaboration with the
French, and Joint collaboration with the
United States fertilizer manufacturers
has been proposed.
France-Long unbroken business ac-
tivity continues, but prices are rising
and sporadic labor unrest is spreading.
More than $4,000 workmen are now in
volved in various strikes. Banque de
France is expected to steady an over
flush money market with a short-term
bond issue representing the first utili-
cation of open market powers conferred
under the recent sterilization legiSla-
ton. Years trade deficit is set at
$3.50 900 900, compared with $50, 1000 900
in 1923. General exports dropped per
cent last year. manufacturers hardest
hit, thus rejecting higher export values
since sterilization. Imports increased
10 per cent, largest increases being in
industrial materials, which reflects
gain IN domestic consuming power. In
creased invisible exports are believed
fully to compensate the trade loss.
Revenues from foreign investments
alone are estimated at $240,000,000.
Important Contract Awarded.
Belgium-G Grant to German engineer
ing firms of the $4,000 900 excavation
contract for the first part of the Liege-
Antwerp Canal is interpreted as signi-
flying the trend toward closer Flemish
German relations and away from
Franco-Belgian business Affiliations.
mobile works agree to share in the
manufacture Of parts and to partici-
pate in a new joint assembly plant to
produce a popular-priced, six-cylinder
automobile to compete with Ford and
Citroen.
Spain-Business very uncertain fol-
lowing resignation of dictator and cabi-
net. Recent decree requires exporters
to convert foreign exchange receipts
within eight days or suffer severe pen
alties. PeSeta remains weak.
Poland-National Bank pays record
20 per cent dividend, thus rejecting ex-
cellent financial position Trade sur
plus increased $70,000,000, due to in
creased exports. Government opens
second plant, with capacity for 10000
tons Of nitrogen and 100, 900 tons of
fertilizer annually; brings domestic pro-
duction to equality with annual con-
sumption and thus saves 1000 900 an
nual imports of these products. Seven
cement plants establish I0-year cartel,
marking increasing Importance Of Po-
llsh industry and significant possibili-
ties in export field. General Motors is
reported to be preparing to open an as
sembly plant at Ozorow.