Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-16
FOREIGN BUSINESS
SLOW IN RECOVERY
Eastern Europe Reports Still
Further ReceSsionS in Com
merciaI Activity.
Special Dispatch to The Star.

l
NEW YORK, February 15-Cable
dispatches to the Business Week give
the following survey of business abroad
for the week ending February Isl
Europe-Apart from the continued
readjustment of bank rates to lower
levels and the flow of capital from sur
plus to deficiency countries, business
conditions are featureless. So far no
general pickup Is apparent, though only
Eastern Europe reports further con-
fractions of activity. Continued mild
Winter weather is bringing an early de-
cline in coal production after recent
record levels. Continuing low world
cereal prices delay the recovery Of farm
purchasing power, important to devel-
opment OF the years business. There is
interest in the fact that the United
States, at the last minute, appointed an
observer to the tariff truce conference.
Great Britain-BusinesS, encouraged
by the lower bank rate, is cheerful.
Interest at present is focused on the
coal bill and on the budget. Foreign
iron and steel demand is strengthening,
but coal contraction is especially sharp
in Wales, where also there is a con-
gestion Of idle shipping. The section of
the industry spinning American cotton
Is expected to reduce from a 48 to q IS
hour week for the next eight weeks.
New sugar exchange opens at Liverpool
February 20, reV1v1ng futures, onetime
Liverpool feature which was suspended
during the war. The India $50. 900 900
per cent 2-year loan proceeds are met.
Maturing ntne-nonth notes are over
subscribed, interpreted as showing in
creased confidence in the India situa-
ton. With worldwide tin production
restrictions now effective, the price of
the metal is firmer. British-Dutch
rubber sterilization negotiations are
progressing.
Germany Awaits Revival.
Germany-Despite lowered money
rates the expected business revival has
not yet materialized. Industrial trends
are mixed, but in general indicate
weaker domestic purchasing power,
especially in agricultural groups. and
stronger export demand. The rate of
increase of unemployment is slower, the
total now being 100000, slightly below
the figure for this time last year. Gov
ernmental finances are the principal
anxiety Of business leaders. Modem
hauer'S program of increased taxes is
necessary to meet existing deficits, but
incurs the united opposition of all
parties. Business is opposing an in
crease of the sales tax from "a per cent
to per cent; Bavaria is opposing the
doubling of the beer tax; the Socialists
are opposing the borrowing from
healthy employees insurance funds to-
ward payment of the unemployment
doles.
1t is reported that the food minister
is urging the government warehouse to
finance 100000 tons of the surplus rye
crop, thus permitting the recovery of
collapsed prices for this grain.
1nstancing difficulties among domestic
automobile companies, Wandererwerke,
one OF the largest manufacturers, after
per cent dividend in 1928, an
nounces a 100000 loss in 1929. Con-
versely, anticipation of tariff increases
stimulated January automobile imports
and sales. The upper chamber rati-
ned the Young plan, but not unani-
mously, Bavaria and Mecklenburg alb
staining, and the eastern provinces reg
lSterlng opposition. Favorable action in
the lower chamber is expected about
February 22
Belgium-Business is more snottv
Textile strikes spread. Years adverse
trade balance increases from $50, 600, 900
to 100000 due to triple increase of
imports over exports. In Antwerp, dia-
mond cutters, working for several
months only in alternate weeks. will
return to regular schedules at the end
OF the month. Amsterdam cutters.
working only three days a week since
December !, will resume full time
schedule.