Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-19
FOREIGN ECONOMIC
SITUATION SWAyED
|BY GERMAN FACTOR
Markets Are Nervous and Ex-
change Rates FIuctuate
at Rapid Rate.
COMMODITY PRICES SLIP
AFTER RECENT ADVANCE
France Proves Exception to Gen.
eral Trend, Showing Some
Gain in Trade.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, July 18.-Radio and
cable dispatches to the Business Week
give the following survey of business
abroad for the week ending July Is:
Europe.-Indecision and uneasiness
dominate the entire business outlook in
Europe. The seriousness Of the Ger
man situation is becoming increasingly
evident as repercusSions break out In
Hungary, Rumania, Poland.
BourSeS everywhere are nervous, in
active. Exchange rates are fiuctuating
rapidly. The most serious was the drop
in Sterling below the gold export point.
Franc exchange is generally up Reich
marks have sagged precipitously, largely
recovered.
The trend of commodities is again
downward. Zinc producers have sue
cessfully completed negotiations for pro-
duction cuItailment Of As per cent Of
previous quotas, The agreement was
signed by France, Belgium, Norway,
Germany, Poland, England, Australia,
Canada, Italy, CzechoSlovakia and Mex
leo, becomes operative August /. Tin is
aided by Slams agreement finally to
curtail production. This brings 90 Per
cent Of world tin production into the
agreement to cut output
Ships Rate Controversy.
OLAp OpSLdLOIS Ii IIle NOrLn AUanLlC
conference have failed to agree on rate
reductions because of the unwillingness
Of the German lines to forego returns
which, so far this year, have been IA
vorable to them. Another meeting Is
scheduled for July %, at which It is
expected the question will be thrashed
to an agreement. Rate reductions Of
1880 per cent are proposed.
Lcndon.-Britain has escaped any
form OF domestic panic accompanying
the German crisis, but conditions con-
tinue to be uncertain and business is
moving cautiously. After a panicky
session following the close Of the DARN
staedter Bank, in which Britishers were
heavily interested, the stock market
rallied, only to weaken again later in
the week on reports Of uncertainty in
Germany and Central Europe. There
was no concerted selling pressure.
Money markets were unsettled by the
German situation. Sterling exchange
fell sharply. touched a new low since
october, 1925. Though well below the
gold export point. there was not.
through July Is, any move In New York
to take gold. Because the Bank Of
England has full powers, through the
currency act, to support any merchant
banks possibly hit by the closing in
Berlin of the Darmstaedter Bank. there
is no anxiety in London that local bank
difficulties will follow. The haf-year
money market. Two of the big six"
banks have decreased interim dividends.
Commodities were quiet. Wool and
rubber were steady but inactive. Sugar
held fairly steady. Cotton was weak.
Lead and zinc prices were firm, but
there was little activity. Copper is OF.
Iron and steel continue to show some
improvement. Coal is still having a
difficult time. and trade is affected by
the uncertain wages position.
Paris.-Following four-day holiday
Bastille day fell on Tuesday and the
Bourse was closed Monday there are
few developments in French business.
Despite the general critical situation in
Europe, indicators show some improve
ment. Unemployment is down per
cent for the week. Railway receipts
have increased. June tax returns are
nearly three millions above valuation,
and the national turnover tax. though
below the level for 1880, improved 10
per cent in comparison with the May
returns.
Labor Troubles.
Labor troubles have not been settled.
Textile strikers are slowly returning to
work in the northern districts, but
there IS still large amount Of oppooi-
ton to the Laval plan for q gradual
per cent wage cut.
Berlin.-After days of rising hope
over the Hoover plan, business has sud-
denly been plunged into the worst crisis
since 1924. Until this week. production
and trade have carried on normally, but
the two-day bank holiday deprived
manufacturers and dealers Of the pos
sibility of obtaining cash for current
needs. While the government promises
to arrange an adequate supply Of notes
for wage payments, the main concern
to business now Is the finding of way
to meet foreign obligations. Leaders
reluctantly believe some kind of a gen.
eral moratorium will be necessary be-
fore the domestic crisis is ironed out,