Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-11
Interest Conferred on Inter-
national Bank Stock and
Bond Issues.
DEPRESSION IN BRITISH
INDUSTRY WIDESPREAD
Cheaper Credit Is Looked Upon as
Probable Aid in Stimulat-
ing Trade.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 10.-Cable dis
patches to the Business Week give the
following survey Of business abroad for
the week ending May 10:
European atmosphere of suspended
financial stage Is being set for the SUBJ
scription of International Bank shares
and subsequent Young bond fiotations
These probably will be marketed be-
tween now and the end of June. Coin
cident reduction of rediscount rates al
Brussels, London, Paris and New York
Is viewed as significant outward ex-
preston Of the new inward solidarity
among central banks, and as an example
Of the already directive influence exer-
ciSed by the international Bank. Finar-
cial preparations are occasioning some
disturbance on money markets and eX-
changes. Paris, which will undertake to
market the largest European quota, is
becoming both the psychological and
monetary center of operations. Recep-
ton of the bonds in France probably
will strike the general keynote. Pros
poets at present are favorable, but bust
ness will breathe easier after the issue
Is safely marketed and conditions are
normalized.
There is recent further concentration
OF nitrogen interests into separate nat
ural and synthetic camps. A German
nitrogen cartel was recently formed. An
all-American cyanamid cartel has now
been concluded comprising IL countries
and representing annual production OF
l n million tons, or 90 per cent of world
production.
Notable among new long distance air
lines Is the aris-Bucharest service
which opened this week. It Is the long,
In te d.. q
over z countries via Prague, Vienna
Budapest and Belgrade. Berlin-Mos-
cow-Shanghai service, the Zeppelin line
from Berlin, via Seville, to South
America and mail plane line from Paris
via Dakar, to Rio will open In June. The
Amsterdam-In dia-Java mail service will
be inaugurated by the Dutch in October
British Trade Depressed.
Great Britain.-The general tone O,
business Is again depressed, notwith-
standing the slight improvement Of in
dividual commodities. With exceed.
ingly poor response to the weeks Sac
Paulo and local municipal loans, anc
with further issues pending, the Bank
Of England and London are really con-
cerned over the possibility of a baC
reception for the reparations bonds un.
less sentiment improves. Reduction oil
the bank rate to per cent was unex-
pected, the more so since sterling was
at the gold point in terms of francs
This weakness was attributed partly tc
budget reactions and partly to foreign
Withdrawals of London balances pre-
paratory to issue of reparation bonds
While the Bank of England Is losing
some gold to France, the Bank OF
France has requested the larger French
banks to abstain from arbitrage.
Textile disputes continue. but the
wool position Is considered firmer, and
domestic trade in cotton fabrics Is max
ing better progress. Leather boots anC
shoes report better conditions. Coal
iron and steel are stagnant. The semi
official index of production volume fol
the first quarter shows q drop of Al
per cent over previous quarter, but an
increase Of 1.8 per cent compared with
q year ago. Estimates show that cur
rent activity in the heavy industries Is
decreasing. In others stationary.
Business Quiet in France.
France-Despite the fact that bust
ness indicators are favorable and that
routine business shows no appreciable
signs OF decline, the tone Is without
animation and with a certain, If in
tangible, element of depression. The
lethargic tone Is emphasized by per-
sistent stock market apathy, notwlth-
standing both tax reductions and the
new bank rate Of 215 per cent, the low
est since 1898. The impending Young
bond f1otation and preparatory mobili-
zation Of funds Is partly responsible for
the suspension of other activities. The
Business Week Is advised that the Bank
of France may even reduce the bank
rate to 2 per cent, a level touched only
once in history, in 1877.
Business indicators for March show
coal, iron and steel production in
creased over February and over figures
for 1929. Current car loadings are
slightly below 1929, but rail receipts are
higher. March tax revenues remained
identical with those of one year ago
Notwithstanding substantial tax reduc-
tions since that time. Tourists will ben
eft by recent tax reductions. Hotels are
reducing rates and steamship lines cut
ting port taxes. United STATES Govern
ment representatives have arrived in
Paris and begun conversations looking
to negotiations to remove double taxa
ton.
Bank Rate Interests Germans.