Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-06
BUSINESS ABROAD
STILL DEPRESSED,
OUTLOOK IS POOR
PesSimiSm Dominates Trade
View in Every Country
in Europe.
TONE IN FRANCE is BEST
OF ALL MAJOR NATIONS
Financial Middle in Germany Has
Complicated situation-Italy
Is Unchanged.

NEW YORK, July 5.-Cable dis
patches to the Business Week give the
following swift survey of business
abroad for the week ending July 5:
Pessimism dominates the business
outlook in almost every country in
Europe and no change for the better is
in sight. Trade during the Summer
months probably will be written off as
a total loss. Immediate crop uncer-
talnties in half a dozen countries are
having an unfavorable effect on prices
already affected by persistent recession
1t IS felt now that no general economic
recovery is possible before late Autumn.
or perhaps, even later
The meeting of the little entente is
foreseen as the possible commencement
OF European agricultural cartel with
resulting closer economic union between
Rumania, Jugoslavia and Hungary.
CzechosloVakia, which has signified par
tlclpatlon through trade agreements, is
the only industrial country involved.
Progress of the negotiations for a
synthetic nitrogen cartel is being kept
dark, but cooperative plans with the
Chlleans are still under discussion. In
the meantime, the Chileans will enforce
existing price and sales agreements in
England and Ireland for another month
The international rail cartel has de-
cided to maintain prices for the third
quarter. Little consideration is given
to the possible effects on Far Eastern
orders which may result from the con-
Structlon by Japan of rail plant in
Manchuria.
Business Slow in England.
Depression continues in Great Britain.
Stock markets are dull except for trad
ing in gilt-edged securities
After a long conference in London,
British and Dutch rubber interests
adopted unpublished plans for some
form of restriction which will be sub
mitted at once to the Growers AsSocia-
ton for approval Though there is no
official announcement, it is rumored
among London dealers that the COM
mittee will approach the government
asking restriction of 25 per cent. Tin
producers will suspend production for
two of the next three months, with
quarterly limitation to 20 per cent of
the 1929 output. This plan will be ef-
fective over 70 per cent of the worlds
tin production.
The week in France has been season.
ally featureleSS, but the business tone
remains the best in Europe, although
the anticipated depression cycle con-
tinues to be creeping upon industry.
tariff has completely subsidized, apparent
ly at the realization that French goods
are relatively spared, and because of the
general belief that government officials
in Paris are really examining the mat
ter with view to taking whatever &C
ton circumstances may command in
order to maintain adequate protection
Of French prosperity. Significant in
this connection is the enthusiastic press
comment concerning SPANS adhesion
to Brands memorandum on the eco
nomic federation of Europe, such ad-
hesion being hailed as characteristic
of a new sentiment in European sOlidar-
ity in the face of American Imperialism
The little entente is expected to fol-
low SPANS lead, but the attitude of
England and Germany is rather re-
served.
French Are Alarmed.
Rhineland evacuation is the weeks
dominant event. While leading French
opinion is somewhat alarmed at the
political consequences of the restoration
of Germanys territorial integrity espe-
Cially because of Frances military I'M
preparedness, business and industry are
optimistic in the belief that this is
highly conducive to final rapproache-
ment with Germany and resultant close
economic cooperation between the two
countries. Such opinion, though rea-
sonable, is rather hasty because Ger
many will now demand the return of
the Saar Basin as a condition of recon-
citation. This problem is more eco
nomic than political, because Frances
ownership of the Saar coal mines is
now to be the chief point in the coming
negotiations.
once more in Germany the entire
economic situation is dominated by the
hopeless financial muddle which has
made it necessary for the third time
within half year to provide cover for
the ever-increasing budget deficit. The
new finance minister, DR.. Herman Diet
rich, has only slightly modified Modem
hauer's last program. The principal
CHANGES are in the enerpancV tax on