Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-25
BUSINESS DECLINE
CONTINUES ABROAD
Absence of Seasonal Revival
Reported More Conspicuous
During Past Week.
snecial DISPATCH to The Star.

Special Dispatch to The Star.
NEW YORK, March 25.-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending March %:
Europe-Slow cycle business depres-
sion continues. The trend Is feature
less. dull with the total absence of sea-
sonal revival more conspicuous this
week. No material changes are expect
ed before world values stabilize and
surface f1uidity of short-term credit
tllawS frozen long-term loans. Financing
facilities are everywhere inadequate, ex-
cept in France, where February bond
issues nearly doubled any previous rec
ord. but this week were contracting.
german PRONUNCIATION of the Young
plan opens the way for ratitlcatlon by
creditor powers. The British govern
ment has already authorized ratiflca-
ton, Italy is expected to ratify next
week and Belgium by the end OF the
month. In France, however, opposition
parties may seek to embarraSs the Tar
dieu government, though Paris authori-
ties expect the bond issue will be pos
sihle by early June, unless unexpected
difficulties arise.
The tariff truce conference is con-
verging on the French proposal for a
one-year fiXation of tariff treaties or
for autonomous schedules as existing on
April /. 1t is likely, however, that this
schedule will be further narrowed by
lists submitted by each country of GER
tain articles to be excepted during the
truce.
Underlying Conditions Poor.
Great Britain.-Approach of the fiscal
wear end tightens money. but the strtn-
gency is believed to be transient, while
new optimism is springing from the
second bank rate reduction to 3l2 per
cent, strengthened by expectation Of the
early renewal of relaxation. Gilt-edge
securities markedly strong and with good
subscription. Rapid sale of Southamp-
ton issue signifies revival of investment
capital, but support of industrial shares
is still hesitant. The more confident
business tone itself is an asset, but I'M
DERIVING conditions and prospects GER
ta:nly are not bright.
Restricted basic manufacturing and
high unemployment continues contra
seasonally, while low forward orders
tend to discourage hopeful anticipa-
tons that turning point is approaching
February foreign trade, for the second
successive month, is smaller in volume
and below both 1928 and 1929. Import
losses are chiefly in cotton and wool;
export in iron and steel, machinery,
Completion of budget estimates indi-
Gates current deficit will be, at the mimi
mum, $4,000, 900, with a prospective
deficit of $500, 100000 for 1881 on the
basis of current tax rates. While some
look for no material increase in direct
taxes, London City is expecting a six
pence-possibly a Shilling-increase on
income tax, already four shilling to the
pound.
Channel Tunnel Outlook.
Rejection of the expert subsidy clause
in the coal bill is the first defeat of the
Labor government, but, while the posi-
ton of the government is precarious
the opposition is unprepared to provoke
the election issue. opinion is general
that labor, if retaining Office another
year, will defeat itself through failure to
relieve unemployment.
The channel tunnel committee re-
ports favorably on providing a pilot
tunnel estimated to cost $28 ,000 900 to
be built over 2l2 years. The committee
establishes the feasibility of main shafts
estimated to cost SIPS, 000,0 00 and re-
curing four and one-hah years to con-
struct. Also conditional undertaking by
q private enterprise is now ranked as fu-
ture probability.
Lord Kylsant makes good the report
VA bA4C 1>A1lS IA1dI ~ 10 LIS 1IlJCIALAOAl
in future to form a national shipping
combine. Some consider this only a
forensic defense of his own interests
whose general position is still bathing
although it is evident that recent finan-
cial support has been forthcoming evil
IDENTIFY from banks previously pressing
for settlement.
German Business Unsettled.
Germany.-Political confusion con-
tinues. Business is unsettled, notwith-
standing the final PRONUNCIATION of the
Young plan. Hindenburg is appealing
for the collaboration of all parties to
meet the urgent economic needs of the
country. While the Upper House passed
Moldenhauser's financial program, the
coalition parties in the Lower House are
divided and deadlocked and are proceed
ing along elaborate independent pro-
grams.
Meanwhile, failure to pass agricultural
relief measures has precipitated new
turmoil. DEFENDERS increase in farm
products duties has failed to stabilize
prices and, following the cessation OF
government purchases, rye has dropped
Is per cent in week, to unprecedented
levels. The food minister asks Parlia-
ment to authorize the government to
make an unlimited increase in wheat
and rye duties until prices stabilize, in
crease barley and sugar duties, estab-
lii an import MONOPOLY on corn.