Evening star., 1930-06-22
FOREIGN CAPITALS
STUDY EFFECTS OF
HIGHER j. S. TARIFF
Restriction of Exports Is
Feared With Prejudice to
Debt Payments.
GERMAN PREPARATIONS
LOAN OVERSUBSCRIBED
Successful Issue of Bonds Report
ed in Britain, France and
Elsewhere.
Special Dispatch to The Star.


NEW YORK, June 21.-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending June 81:
Europe.-Reactions to the new United
States tariff policy very definitely sup
planted in business interest this week
the Young bonds and International
Bank shares. No little bitterness is ex-
pressed in almost all centers, but it is
improbable that there will be immedi-
ate tariff reprsals. United States prod
ucts will encounter harsher customs
treatment and the more or less desul-
tory attempts to encourage European
trade solidarity have been given a fresh
impetus by the common feeling of re-
sentiment.
European capitals are pondering sew
eral questions in relation to the tariff
The first is the degree to which it will
restrict European exports to the United
States and the corresponding degree to
which it will prejudice Europe'S ability
to meet the war debts More vital to
United States business is the question
whether or not Americans will be able
10 secure 1IOIH foreign countries COn-
tinuation of moSt-favorednation treat
ment, the keystone of American foreign
trade policy. Finally, what will be the
effect on American production costs
and on American competitive export
power.
British Trade Declines.
Great Britain.-General business dull
ness has been accentuated by Whitsun-
tide holidays without even the normal
increase in railroad traffic The stock
market is inactive and suffering from
reactions in New York. Monetary
stringency prevails. A lower bank rate
is no longer expected. Lists for the
reparations loan were closed after four
hours and were twice oversubscribed.
Official figures show that foreign
trade in May suffered a heavy decline.
Total value of imports declined 119 per
cent from the same month in 1929,
while exports decreased 24.3 per cent
and re-exports 1919 per cent. The only
commodities showing Improvement were
coal and pottery.
The London conference between gov
ernment ard local authorities on un-
employment is expected to lead to party
cooperation in an attempt to find a
major solution to the problem of seri-
ously increasing unemployment.
Prices Sag in France.
France.-Except fer record building,
business is no longer so good Prices
are sagging, profit margins f1attening,
volumes contracting. The country
seems finally to have succumbed to
world depression. May price indices
show lower wholesale and higher retail
levels.
Because it will affect chiefly French
luxury industries, the United States
tariff was received with relative calm.
1t should be noted however, that
French business sentiment toward the
United States has long been cumula-
lively hostile and promises to become
the chief point of friction in Europe.
Germany Has Export Surplus.
Germany.-The chaotic condition of
federal finances continues to be the
major factor in the German economic
situation, and the cause Of Finance
Minister Moldenhauer's resignation. The
majority of current business indicators
paint a gloomy picture of business. Dis
lniSsal of federal railroad personnel, un-
satisfactory orders in the machine in
dustry and declining department store
sales in both March and April are
among the most unfavorable factors.
The only bright spots are a small pick
up in car loadings, a seasonal decline
in commercial failures and an export
surplus for April of one-quarter billion
marks, resulting from increased exports
of manufactured goods and stabilized
imports of raw materials at lower prices.
Successful issue of Young bonds Is
expected to reopen the valve for the
influx of foreign capital, notably Amer
&c hnUpUpf that
relief is too late, for German receipt
bility of foreign credits is now impaired
by the deepening business depression
and the upheaval in public finance. For
example, the railroad share of 100 mil
lion dollars originally intended for pro-
ductive investment is now forcibly des-
tined to cover the deficit resulting from
the declining traffic receipts during the
current year.