Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-16
BUSINESS TRENDS
|NEUROPE LOWER
Depression Expected to Con-
tinue Until Commodity
Buying Is Revived.
Special Dispatch to The Star.

NEW YORK, March 15.-Cable dis
patches to the Business Week give the
following brief survey of business
abroad for the week ending March Is:
Europe.-Discounting sharp local vari-
ations, the present lower business trend
in Europe is expected to continue until
foodstuffS and raw material prices hit
bottom, when will come the first real
test of the degree Of latent purchasing
power in the country. No recovery from
1929 depression and possibly q bare
maintenance of 1928 levels are at pres
ent hoped for.
The week has brought q further "
per cent reduction in the bank rates
Of England, Germany, Holland, Den
mark and Sweden, but continued re-
Taxation of short term credit Is in
marked contrast to the unresponsive-
ness and inadequacy of long term CAPT.
tai. am
There Is appreciable improvement In
political conditions In England and
France, but Germany Is facing a crisis.
Observers at steel cartel meeting credit
possibility of conversations with Ameri-
can interests toward possible further al
location of exports market. Europe fears
American business depression will result
in heavy dumping abroad, and Is dis
posed to allocate to Americans compen-
sating neutral market in return for
abstention from the European market.
Great Britain.
Activity is still on hand-to-mouth
basis and business is avoiding commit
ments until the budget bill Is announced
on April IA Business sentiment, preW-
ously overdepreSSed, has turned palpably
optimistic, though it is difdcult to see
any justification for it, for the reduc-
ton in the bank rate actually reflects
doubt, hopes for q stimulus of domestic
trade and sees the possibility Of
further reduction in the rate.
Wholesale prices have Slumped 2 per
cent below the February average and
are now IL per cent below that of
year ago. There is general market
stagnation, with low forward orders for
and leather, but wool is more confident.
The Lancashire Cotton Corporation in
creased its capitalization to 1875 mil
lion dollars; abSorbS 5 more companies,
making the total controlled now 76,
equipped with a. million spindles.
Business generally has protested
Snowdens observation on the tradition
and refusal at time Of business paralysis
to indicate tariff policy before an
nouncing the final budget. ProtectioniSt
sentiment appears to be growing, par
ticularly around the perpetuation Of
duties favoring postwar industries, with
sentiment for further extension divided.
Meanwhile, Graham, representing Brit
ian at the Geneva tariff truce confer
ence, Is seeking to shape the conference
toward sterilization and eventual re-
duction OF European tariffs on certain
commodity groups only, such as iron
and steel, industrial equipment and
staple textiles. This suggests tnciptent
differentiation OF tariff policies by
commodities.
Clamor for stock exchange reforms,
and among other things closer scam
ming Of new hstings, compel listed COM
panies to issue quarterly reports. Re
sumption of trading on the suspended
HAIRY stocks marks the final liquidation
episode, but the position OF Hartman
Harrison groups is stil considered I'M
solidifled.
France.
The incipient business showdown Of
the last few weeks is proceeding very
gradually. The new factor of flood
damage is now estimated at 100000
600. Locally, the catastrophe con-
Germs chiefly the wine growers, sheep
and cattle raiSers. There are consider
able industrial losses in textile, paper
and knitwear mills, in tannerieS and
wearing apparel factories but the whole
disaster Is so local as to be irrelevant
to French general prosperity, and rapid
reconstruction with contemplated gov
eminent credits affords prospects of
new industrial outlets.
After recent record bond fiotations,
gilt-edge issues, such as 4 per cent
24,O00, 900 French Land Bank are now
encountering difficulties, while foreign
investments are heavy. NotwithStand-
ing expectation that Tardieu will enact
detaxation legislation, stock exchange
continues moribund. and government is
really concerned over the apathy, fear
ing failure Of approaching large CONVEX
sion operations and Young plan flota-
tons. Reduced taxation, especially
favoring domestic investments, consid-
cred early probability, once budget bill
Is passed.
Germany.
The resignation Of DR.. Schacht Gre
ated q momentary nerve shock on the
stock exchange, but there was almost
immediate recovery since business is
evidently relieved by the replacement
OF a headstrong personality which was
complicating both domestic and foreign
relations, and which viii lessen the
possibility Of friction In International
Bank, particularly since the appoint
ment of a Frenchman as general man.
ager. Benef1t Of final Young plan rati-
ncation partly vitiated by foregoing mis-
management and accumulated deficits.