Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-28
GAINS IN METALS
HELPFUL ABROAD
Foreign Outlook for Iron,
Steel and Coal Called Bet
ter for Next Year.
Special Dispatch to The Star.

the following survey of business abroad
for the week ending December 81:
Business throughout Europe entered
the Christmas week quietly and feature
on non-ferrous markets. A second
hopeful sign Is Silver's recovery from the
slump Of a week ago which, coupled
with price declines on other basic COM
moditieS, brought incipient industrial
improvement momentarily to a stand
still. With textiles and other raw stuffs
somewhat f1rmer, the only remaining
pronounced weakness is confined to
foodStuffs. notably wheat.
The break in Wall Street to new lows
and consequent American selling abroad
has caused general reaction on Euro
pean security values which are still
below previous levels, though trends this
week are somewhat stronger. It might
be supposed that set-backS during last
week were occasioned by renewed pessi-
mism. So far, however, the greater
confidence which has been gathering
for some time Is not badly shaken. The
belief Is current that the new year will
open upon appreciably greater activity,
notably in the coal, iron and steel
industries, which are among those show
ing most recent debility.
America Being Watched.
more toward developments in the United
States than upon domestic matters in
the belief that the trend of world con-
ditions for better or for worse now
hinges chiefly on the ability of the
United States to consolidate current
conditions against further serious dis
Indignation. Should further pronounced
relapse occur, it is believed its effects
would be widespread abroad; conversely,
~ 60
with no immediate marked improve
ment, would go far to relieve economic
uncertainty and strengthen the DISPOSE
ton toward greater confidence.
Two exchanges still remain sensitive
the pound sterling and the peseta.
Pressure on sterling has resulted from
a combination of causes including,
notably, withdrawal Of French balances
from London; also, the slowness of
gold outflow, which only now Is con-
tributing to greater stiffness.
Renewed instability of the peseta is
due to recent political disturbances.
These have been theoretically squelched
by the government, which is momen-
tarily in full control of the situation
and has been able even to effect partial
exchange recovery this week. Renewed
disturbances between Socialists, Repub-
licans and Monarchists may be antici-
pated.
November Trade Reports.
November trade returns are now avail
able. The principal countries all show
declines in values, though in varying
from the October seasonal peak. Some
what surprisingly, German exports,
which heretofore have been holding rel
atively well. suffered the heaviest loss
Is per cent. Manufactures we're hard
est hit. France, whose competitive
ability has been steadily declining as
internal price levels increased, never
theless suffered least-2 per cent. Sim
ilarly. French imports are down only 6
from 10 per cent to IL per cent in
Germany. England and Italy. Com
pared with year ago, few declines ex-
ceeded the intervening 20 per cent
reduction in price levels. However,
there were lower imports into Germany
and England (by 81 per cent and 81 per
cent, respectively and lower exports
and 20 per cent respectively.
The year in London is ending gloom
lily, but with underlying optimism
strong. Neither the coal. railway, nor
cotton disputes are actually nearer
agreement, but coal and railway inter-
ests are determined to exhaust all con-
ciliatory machinery before falling back
workers still refuse the "more-loom'
system and new wage levels. Truce
agreements expire January 5. when
Stoppage Is expected. Unemployment
this Christmas was twice the total last
year. 1t now stands at two and half
millions.
The feeling is general that next year
&C.
facing a shakedown to new levels of
wages, lower standard of living. harder
work and less luxury. The world now
is paying, with interest, its postponed
bill for years of destructive and waste
full war.
Trade Slow In Paris.
Paris business is experiencing the
poorest Christmas season and facing
the darkest new year prospects since
the sterilization of the franc. Though
French depression is still far from the
depths to which business in other
European countries has fallen, 1881 is
expected to prove a year of defiation in
a degree which in most other countries
has already largely been completed.
Several industries are now operating
at cost. Some-especially automobile
factories-are actually operating below
cost. The retail trades, except food
stuffs and quick consumables, are in
dulging in an epidemic of unloading.
Wage cuts are being discussed.
Business continues quiet in Berlin,
evidently due to speculation on what the
new year will bring. The government
has decided to postpone further admin
istrative action on the price reduction
program in order not to disturb the
Christmas trade. This laudable motive |
will actually give little relief to business |
since Christmas buying is at a mini |
mum. 1t is generally believed that in
most respects bottom levels have been
reached.
Meanwhile, manufacturers are ex-
tending the inventory and repair close |
downs beyond the usual time limits. |
Banks are making preparations to show |
maximum liquidity on year-end balance !
sheets. This is resulting in higher |
time-loan rates but in plethora of call i
money. The uninterrupted downward
movement on the Stock Exchange re-
fleets general apprehension that lower
dividend declarations are probable in |
the Spring; it shows that investment |
confidence is lacking.