Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-12
POLITICAL FACTORS
CONTINUE TO SWAY
/. FOREIGN BUSINESS
Trade Situation in England
and on Continent Un-
settled.
LONDON INVESTMENT
MARKET is STRONGER
Few Important Industrial Changes
Are Noted During the
Past Week.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 11.-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending October IL:
Europe.-Business continues to be
uns: tiled The improvement in German
political conditions early in the week,
the universally favorable impression of
the Bruening program and the increaS-
ing belief in the political impotency of
both extremist parties were reflected in
greatly relaxed business uneasiness.
Sentiments, as reflected in the stock
markets, strengthened perceptibly until
the Brazilian revolution and its flnan-
cial commodity implications arose, along
with nervous reaction both on securities
and foreign bonds in Wall Street, and
the relapse of wheat and unexpected
continued unsteadiness of metal prices.
Some concern is felt over the political
aspects of recent developments in East
ern Europe. Renewed Fascist-Socialist
conflicts in Austria and the outcome Of
the new elections in November, the
resignation of Premier Manu- in Ru-
mania which raises the question of the
identity and policy of his successor, and
finally the prospect of a Pilsudski dicta-
torship IN Poland have been outstanding
subjects of business speculation. Though
business seems momentarily to be mark
ing time and deferring commitments,
there are indications that long damned
up initiative is awaiting only the first
favorable opportunity for exertion.
Capital Exodus Continues.
The capital exodus from Germany
continues but the volume is lower, and
British and American credits are re-
ported adequate to cover French with
drawals. Quarterly settlements caused
no appreciate tightening Of money
except in transient London, though the
year end is expected to find present lax
rates considerably sitter. The London
investment market shows signs of reviv-
ing activity, though 1t Is still of the
trial balloon" variety. The week has
brought no important industrial changes
except for the failure of the steel cartel
to reach an accord on the new program
regulating production.
The firmer price trends of the early
part of the week have not been main
tanned but wider buying Is reported on
bulges. Unemployment Is rising season.
ally but so far is not unusual
Great Britain.-Although it is difncult
to find concrete evidence of better BUSH
ness, very definite spirit of optimism
Is reviving helped, no doubt, by the
general feeling of Autumnal activity.
There Is some slight improvement in
the general trend of iron and steel on
the London exchange, but reports from
Sheffleld and other provincial centers
are not so cheering. Cotton inquiries
are keeping up but there is no actual
trade increase. Hide and leather and
associated commodities are fatter than
week ago, and wool is no better. The
metal market Is still disturbed.
Figures for last week reveal an
increase in the unemployed Of 6,245,
which brings the total to 946,718 more
than at this time last year, with cor
responding demands on the dole fund.
Declines in France.
France.-Gradual business recession
continues Measured in carloadings, 1t
is running 10 per cent behind last year;
in iron and steel production, there Is
decline in August over July produc-
ton, which, in turn, was below June.
Industry reports narrowing profit mar
gins. Rising prices and costs and
shrinking volume are causing the
squeeze. indicative of expected further
recession is the action Of Altsholm,
which passed its dividend and placed
more than 100000 in reserve, eU-
IDENTIFY to conserve resources against an
anticipated lean year.
It must be observed, however, that
the French business trend is still gov
erned primarily by domestic factors
and is little associated with world de-
preston. due to the highly self-con-
tanned character of the national eco
nomic structure. 1t Is now experiencing
both a normal change in the business
cycle and complications occasioned oy
the exceptional monetary conditions
caused by an excess Of gold and capl-
tai which is tending TO promote price
imitation. Two factors cushion against
overacute depression: % French eau
tiousness against overexpansion in
times of prosperity, resulting in an I'M
usual degree of industrial equilibrium;
CD the presence of 100000 foreign
Workmen, whose re-emigration would
precede the development OF any mate
rial unemployment.
Germany.-The nations political and
business situation continues to hold the
center of world interest, but despite
some nervousness which still prevails,
general sentiment is more confident.
This reflects particularly the favorable
acceptance of the Bruening program at
home and abroad. Anything resem-
bling a financial panic seems to be a
thing of the past. The demand for for
eign bills has subsidized, and the out
flow of gold for foreign exchange Is
considerably below the demand during
the first two post-election weeks.
More optimistic business sentiment Is
supported by the improved political
outlook, inasmuch as the Socialists
have given up the idea of wholesale
repeal of the July emergency DEGREES
and are showing conciliatory attitude,
! which foreshadows a possible parlia-
mentary compromise.