Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-14
Little Change Revealed Dur
ing Week-BritiSh Bust
ness Tone Good.
INDUSTRIAL ACTIVITIES
ARE ABOVE RECENT Low
Germany's Political Situation
Proves Factor in Prolonging
Trade Slump.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, December 13.-Cable
dispatches to The Business Week give
the following survey of business abroad
for the week ending December Is:
Eur0pe-Immediate business condi-
tons are little changed. Industrial &C.
tivity trade volumes and prices con-
tinue near bottom levels. Money re-
mains abnormally easy and capital alb
normally tight. Slack money is still an
index Of restricted business; tight CAPT.
tai is an index, not Of deficient supply,
but of deficient investment confidence.
If little change Is apparent from week
to week. the trend over the last six or
eight weeks has been one of gradual
progressive improvement and each new
week business Is inclined to take a more
sanguine view of the prospects. Bar
ring accidents-and accidents both DO
litical and economic are still among
the possibilities-it begins to seem that
business In Europe may shake of its
lethargy and heSitancy early in the
new year.
General Conditions Better.
Even now general economic condi-
tons in Europe, with the important ex-
ception OF Germany, are considered
better than conditions in the United
States. England, particularly, shows
signs OF revival and maintains an opti-
miSt1c business undertone notwithstand-
ing immediate labor troubles and OBJ
security of future trade and tariff
policies, and political confusion. Re-
newed investment activity, which began
in october, has continued encouraging
ly and, though still restricted primarily
to trustees issues, may be noticed in
the growing fringe Of Investments in
industrial debentureS and even in
stocks. Activity among the major in
dustr1eS still has its ups and downs. but
average activity is now sometimes main
tanned measurably above the previous
lows, thus rejecting incipient improve
ment both in domestic and foreign de-
mand. Production costs are again sub
lect TO discussion as factor in estab-
fishing a foundation for the price
structure just as security yields were
studied after the stock market breaks.
In Germany the immediate condition
OF business is grim and the internal
popular feeling born of depression is
becoming dangerously pent up. It may
be hoped that the Reichstag's tndorse-
ment this week of the emergency de-
crees promulgating Bruening's fiscal re-
form program will prove the turning
point, for it not only marks the sue
CYNICAL
immediate political issue but a new
departure in Germany's fiscal and
economic administration. It has be-
come evident that the success of the
price reduction programs in both Ger
many and Italy depends largely on
the rapidity with which the programs
can be carried out before the suspension
Of business in anticipation of lower
price levels reacts upon industry and
unemployment.
Business in Italy is not good but
are relatively fair. Prosperity in France
Is declining and further decline is in
prospect, but the fall Of the Tardieu
government and the uncertainty of its
successor so far have been without ap-
preciable effect.
New CarteIS Planned.
The week has been characterized by
the year end meetings of existing car
tells in an effort to form new ones, The
continental iron and steel cartel, sub
lect to ratification by its members, has
been renewed until June 80, 1881, with
certain rather important notifications.
LondOn-Tron and steel are steadier
ana tinplate Is stronger. The wool
trade has recovered from recent ir-
regularities. Hemp is active and Arm
vegetable oils, long stagnant, are
steadier and in wider demand. Trade
In hides and leather is quiet and un-
changed Textile cotton buying was
suspended when raw Stuffs sagged. but
new year prospects are Considered
brighter. Price reductions on pig iron
failed to bring any Improvement but
better activity for Semi-manufactured
has been maintained.
Retail stores have launched a "buy
now" capaign on the American nlar.
with the plea that prices are down
from 10 per cent to Is per cent.
Paris.-The fall of Tardieu's "pros-
perity government" was the most sig
nif1cant event Of the week, despite the
TACT 1t disturbed business surprisingly
little.
For once, business in France Is in the
grip OF economic rather than political
conditions. Prices are too high: do
nestle consumption is contracting. Ex-
ports are falling of, new ordersSScarce
Competition is severe. profit margins
narrow. unemployment spreading.
Berlin.-Germany has settled back
with a sigh of relief since the Reichstap
voted to reject the motion for repeal
OF the emergency decree. The period
OF extreme agitation in German politics
seems to be at an end and business is
looking forward to several months less
disturbed by political troubles. The
Reichstag is expected to adjourn at the
end of the week until early February.
when 1t will resume work on the budget
bill which has now passed its first
reading. Meanwhile the Bruening cabi-
net can devote all its energies to carrv-
ing out the provisions of the emergency
decree, completing the price reduction
campaign, and fighting unemployment
which, at the end of November. had
reached a new peak, with 100000 out
~ Nv