Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-29
FOREIGN INDUSTRY
FEELS EFFECT OF
U.S STOCK SLUMP
Widespread Depression Re-.
ported in Britain and Con-
tinentaI Europe.
GAIN IN UNEMPLOYMENT
is DISTURBING FACTOR
French Taxes Shrink-German In.
dustrial Peace Confer.
ence Fails.
Special Dispatch to the Star.


following survey of business abroad for
the week ending June 20:
Europe.-Renewal of the Wall Street
slump has accentuated the general de-
preston in European business, and no
immediate relief is in sight. Prices are
down; uneasiness is widespread. The
first issue of reparations bonds was
artificially successful in all countries
except Holland, where a bankers con-
sortium was forced to absorb so per
cent of the Dutch portion of $29 ,346 900.
The International Raw Steel Cartel has
concluded its sales agreement with Swiss
iron dealers on terms similar to those
practically accepted by the British.
Territorial restrictions are stipulated in
the agreement, along with cartel
minimum prices, and prohibition from
buying continental iron outside the
cartel. The cartel is now negotiating
with Dutch dealers.
European nitrate producers have de-
cided there will be no restriction on
synthetic nitrogen production for home
consumption for each adhering country,
and that the lowest scale of prices for
national consumption w$ll prevail, with
exports limited to fixed proportions and
prices. Prohibition of nitrogen plant
expansion has been agreed in principle,
as we'll as restriction of output to 40 per
cent or so per cent of present volume.
Europeans will meet in Paris next week
to decide on their agreement with the
Chileans.
British Slump Continues.
Great Britain.-Heavy liquidation in
reaction to the Wall Street break has
further depressed business. Coal orders
have declined and Welsh producers
have authorized that production during
the September quarter be reduced. Cot
ton prices have dropped, causing un-
settlement in the Manchester trade.
Official unemployment figures con-
tinued to increase last month to 1873
per cent, compared with 14.6 per cent
on April %. and with 81 at the end
of May last year, with the cost of living
index 81 per cent above 1914, as against
so per cent year ago. The govern
ment scheme for the solution of unem-
ployment by a special branch of the
civil service and the three-party con-
ference are regarded unhopefully be-
cause the Tories demand tariffs as the
first essential.
The movement is increasing in
Lancashire to increase the number of
looms per worker from four to eight
No actual trade union restrictions pre-
vent, but workers fear increased unem-
ployment. The eight-loom system would
decrease employers wage costs nearly
20 per cent. At present, only one-half
of the 100000 looms are running.
49, French Taxes Decline.
France-Business indicators this week
confirmed earlier forecasts of an in
cipient crisis. Tax receipts for April
and May, first two months of the fiscal
year, we're down $20,000O00 over last
year. May imports dropped $14,500,000.
exports $6,000,000 below April totals;
compared with May last year, imports
were down $38,000.000 exports $780,
600. Railway receipts and car loadings
are declining steadily, receipts for the
first week In June being down 634 per
cent over last year, l per cent below
the previous week There is a pro-
of domestic and foreign trade
AS a result of Mussolini's warlike
speeches, France is planning to spend
Immediately $40,000,O00 for modern
military equipment and complete re-
organization along the italian frontier,
aside from the regular defense ex-
penditures. Parliament will discuss,
shortly the $7O0. 100000 national equip
rnent program, hailed as the only prac-
tical means of maintaining normal
activity.
Situation in Germany.
Germany-General business stagna-
ton, accentuated by the financial dead
lock In the government, is the keynote
of business this week. The monthly
report of the Deutsche Bank Disconto
Gesellschaft is surprisingly pessimistic
prophesying deepening depression as a
result of the financial Encouragement
in the country and undated capital
Stringency.
Moldenhauer's resignation is indica-
tive of the seriousness of the situation,
and Bruening's efforts to find sue
ceSsor have so far been without success,
ali parties refusing to assume respon-
sibility for the Inflated ministry. The
position Is aggravated by the fact that
Bruening is sticking to the emergency
tax to be levied on the salaried classes,
though the plan has been rejected by
a majority in the Reichstag. Business
Is unanimous In the belief that only
drastic reductions In public expend-
itures by a finance minister invested
with dictatoria1 power can save the
situation.
Because the industrial peace confer
ence between employers and labor has
failed to arrive at any general agree
ment, it has nominated trade commits
tees to consider concrete proposals for
price and wage reductions in Single
industries. In the meantime, the per-
centage of unemployed members in the
building trade unions has reached SO
per cent against IL per cent In 1929.