Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-04
RECOVERY IN TRADE
CONDITIONS ABROAD
IS DECLARED SLOW
Outlook Brighter in Britain,
Says Survey in Busl-
ness Week.
TAX CUTS MAY REVIVE
INDUSTRY IN FRANCE
Germany Enjoys Good Export De-
mand, With Reichsbank Posi-
ton Much Stronger.
Special Dispatch to The Star.


Europe.-Business Is not yet out Of
the holiday lull. Within another week
it Is expected that final organization of
the international bank will be COM
pleted and decision made on the first
reparation loan. England definitely
fears no cataStrophical consequences
from increased taxation, although I'M
easiness concerning its effect upon the
supply Of capital persists. France has
enacted tax reductions. but passed 81
multaneously its first compulsory social
insurance law, whose costs must in
evitably be added to manufacturing
costs and price levels. Germany, in fur
Their developing the new agricultural
tariff policy, has succeeded in raising
domestic values, but 1t Is seriously
feared exporters Of manufactured goods
will suffer reprisals in foreign markets.
Italy has further consolidated her syn
dicalist system with the Inauguration of
q council of corporations, a superstruc-
ture, designed to give national unity to
existing separate syndicates correspond
ing to each field Of enterprise.
Final settlement Of the Eastern Euro
pean PREPARATIONS questions at the Paris
conference removes this condition, stip-
ulated by Italy and England before
their ratification Of the Young plan.
Immediately following these ratifica-
tons subscriptions will be opened for
international bank shares. Ftfty-Six per
cent of q total share capital Of $780,
100000, will be divided into 100000
five hundred dollar shares, or 10000
shares will be assigned in equal parts
to seven participating powers. It Is ex-
pected that the German Reichsbank
and United States and japanese particle
pating private banks will retain their
uyh hoY ~ TffnI nj
France, Belgium and Italy will offer
shares for public subscription. There Is
general anticipation that these certif-
Gates will be oversubscribed everywhere.
Smaller allotments, probably of 5000
shares each, are expected to be made to
Switzerland, Holland and Sweden and
the balance gradually repartitioned
among other gold standard countries.
Business Slow I'm Britain.
Great Britain.-The business outlook
Is discernibly brighter, but immediate
business Is still slow and featureless.
Succeeding weeks probably will be
eventful as various developments now
terminating will develop. The series
Of foreign loans, already underwritten,
will, when issued, test the market and
determine the validity Of British capi-
tai away from the pound. Fresh ru-
planning q national shipping merger.
but the Business Week has learned that
his plans are more apt to tend toward
disintegration of his group and reas-
similatiQn into four or dve main hold
ers.
Among current conditions, the coal
trade reports better inquiries, but little
new business, while several local col
liery districts are closing down. Steel
has taken some good contracts; iron re-
mains unchanged. Cotton Is still fiat.
Handicapped BY the indian tariff and
disturbed conditions in China. The
wool outlook Is better, with prospect
for settlement Of the Burnley labor dis
pute. Both motors and rayon are I'M
proving after Snowden's announcement
that duties will not be changed. The
shipping tie-up Is beginning to thaW
and rates are steadier, although idle
tonnage April / was still 892, 900 tons,
the highest In the last eight years.
Trend Uncertain In France.
France.-Enactment Of the tax-re-
duction program and Of the first French
compulsory social insurance law domi-
mated business interest this week,
though there Is no obvious reaction.
New conditions are not yet reflected
in general business, and the probable
trend is puzzling. Sentiment seems
shade less optimistic, whereas 1t had
been expected to react favorably to the
realization Of the long-awaited tax cuts.
These reductions cut taxes $4,000, 900
to q total lover IA months) Of e210,-
600 900, or 10 per cent Of total budget
revenue. Lack Of response from bust
ness Is in part attributable to the pecu-
liar multiplicity of French taxes which
makes even larger aggregate reductions,
when dispersed through many tax cate
gories, fail Of material single effect.
The new social insurance law repre-
sents a leap into the dark. Opponents
prophesy the plan will eventually neces-
state far greater costs and re-enact-
ment Of taxes to maitain budget equili-
brium. With important revenue reduc-
lions, and state committal to an I'M
known extent on the costs Of social in
surance. prosperity becomes an increas-
tngly vital necessity to French finances.
A moro immediate effect on business Is
seen In successive additions OF employ
ers' wage contributions to manufacture
ing and trade costs, entailing an in
crease in the general price levels esti-
mated at anywhere from per cent to
IA per cent.
Reichsbank Strong.
Germany.-Sustained exports and the
strong position Of the Reichsbank are
the solitary bright spot in the increas-
ingly gloomy aspect Of business condi-
lions when contrasted even with the
limited degree Of seasonal Improvement
now progressing in other European
countries. Business is shocked by the
heavy dismissals of workmen from lead
ing industrial plants hitherto considered
relatively least effected. During the
week, Siemens discharged 1000 hands,
United Steel Works 5000, Leuna Syn
thetic Nitrogen plant Of the Farben-
industrie $500 and Mansfield Copper
Works 800. Total unemployment in
the first week of April was 3,050,000
which Is 400, 900 over the figure q year
ago. Building trades are now employ
ing only AZ per cent Of their members,
compared with 80 per cent q year ago.
notwithstanding the mild Winter and
Spring, compared with last years I'M
precedented cold. Financial difficulties
Of manv German municipalities are the
principal causes for contraction Of new
building.
Farm relief is launched and the re-
cent radical increase In agricultural
tariffs has succeeded materially in in
creasing domestic grain prices, but not
without seriously threatening Germany's
export trade. Duty increases have al.
ready brought prbests from Poland.