Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-28
FOREIGN BUSINESS
OUTLOOK DECLARED
SOMEWHAT BETTER
Uncertainty Over German
Situation and Weak Com.
modify Prices Still Prevail.
IMPROVED SENTIMENT
Is NOTED AT MlDWEEK
Principal Stock Markets Recover
ing and Exchange Rates
Are Steadier.

NEW YORK, September 27,-Cable
dispatches to the Business Week give
the following survey of business abroad
for the week ending September 81:
Europe Business is in fitful state.
The uncertainty occasioned by the Ger
man elections and the totally unexpect-
ed renewal of softening commodity
prices particularly cotton, copper and
wheat--caused an appreciable check In
previously strengthening business con-
fidence and stock market buoyancy.
Latest indications are that sentiment
principal stock markets were recover
ing and exchange oscillations were
steadying. Foreign credits in Germany
were reported little curtailed except for
the French, which have been heavily
withdrawn. Prompt intervention by the
Reichsbank halted the incipient weak
ness of the Reichsmark, which Is now
easy. Both dollars and sterling gained
against francs as the Reichsbank, In
stead of further selling exchange, can
nily exported gold to Paris in order
to prevent franc appreciation on with
drawals of credits. The first shipment
Ol 93,UUU,UUU dlkQ tAAC oCOOAASA Va @AA
identical amount Is reported. Money
Is somewhat tighter in Berlin, but easier
to the point of being plethoric in Paris
and London.
Encouraging Items.
Two encouraging items of the week:
More liberal Far Eastern orders, espe-
cially for textiles; the Indian report
that, Notwithstanding excessive world
stocks of hessianS, raw jute prices are
firming after long decline. Due TO the
importance of this fiber for packaging
materials, 1t Is considered particularly
sensitive trade barometer.
The focus of business as well as po-
litical attention continues to pivot In
Germany. Immediately at stake for the
future administration is the continents
most important economic unit. Elections
marked the first organized challenge OF
the Versailles treaties and reparations,
whose revision even many neutrals feel
Is inevitable, and matters awaiting only
an appropriate time and method. First
fears that Nationalist victory would
endanger the republican government
and lead to policies jeopardizing Euro
pean stability have given place to the
expectation that the very degree of Ma
tionalist success will tend to unite the
Moderate Socialist and Bourgeois par
ties who still hold an actual majority
between them. 1t is entirely probable
that the situation will turn, not upon
election issues or foreign policies, but
nonic problems, namely farm relief and
tariff, unemployment subsidization, tax
alton and budget equilibrium.
Open grain markets are momentarily
upset by Russian dumping, though Opin-
ion seems general that this condition
cannot last long because Of Russia's in
ability to maintain the present volume
of exports.
Great Britain.-Busines is a bit
disgruntled over prolonged stagnation
and the failare of the initial seasonal
pickup to develop more rapidly, but the
net position, viewed from London, is still
ofe of relative Improvement. Confidence
rallied this week when unemployment,
after increasing 79,137 last week,
dropped 36,156.
General concern over the unemploy-
ment situation, particularly since the
unemployed number more than two
millions, and with the belief common
that increases cannot be stopped this
Winter, has led to the formation of q
national council Of industry and COM
merce," sponsored by Sir William Nor
ris, the motor manufacturer. This
group will work for protected home
markets and elimination OF national
waste. Though considered. by many
only q protectioniSt maneuver, the an
nouncement Of the council has had o
marked affect on popular feeling.
France.-Merchand ising is reported
seasonally more active, but new orders
for the basic Enthusiastically coal,
iron, and steel-are declining. The
local cartel has reduced prices on steel
~ hn 1waxYo
sion of foreign competition following
the recent dissolution OF international
price agreements. Money continues
plethoric with a considerable Withdraw
al of credits from Germany. The ac-
emulation of gold in Paris continues,
but is expected to cease during the COM
ing month as tourist expenditures come
to an end and seasonal raw material
purchases begin.
The latest crop estimate shows a
further decline to 100000 tons, COM
pared with 100000 q year ago. I'M
ports this year are likely to exceed
5000, 600 tons. One year ago the coun-
try had an exportable surplus of 1,OOO,-
600 tons. The stock market has stead
led from the relapse occasioned by the
German elections.
Politics Influence Business.
Ucrmany. - FOllGlcal factors have
strongly influenced the business out
look. particularly In the. unfavorable
impression created abroad as q result
of election issues. Further, there is ap-
prehension In business circles regarding
the attitude of the Bruening govern-
ment to delay action until the reassem-
bly, OF the Reichstag. Leaders on the
Berlin Stock Exchange urge the neces-
sity for immediate formation of a new
majority in the government to remove
the present state OF uncertainty which
has proved so detrimental to the stock
market and to business generally.
However gloomy the immediate out
look, recent sensational reports which
caused such heavy depreciation Of Ger
man securities on foreign stock ex-
changes are considered grossly exag-
gerated by responsible business.
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