Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-24
FOREIGN BUSINESS
REMAINS CONFUSED
AS BONDS ADVANCE
Stocks, However, Go Lower
Due to Political Worry Over
Geneva Farley.
COPPER, LEAD AND ZINC
DROP TO RECORD LOWS
Encouragement Found in Trade
Figures Showing Larger Raw
Material Imports.
Special Dispatch TO The Star.


following survey Of business abroad for
the week ending May %:
The business picture remains confused
and uncertain. Although exchanges are
steady and bonds have risen. strongly
where influenced by the bank rate cuts,
stocks have slumped conspicuously. In
England, particularly, the boom in gilt
edged securities contrasts with the de-
cline in stock levels, which now are con-
sidered unprecedentedly below their
intrinsic worth. A European wide rally
was progressing Wednesday, but it re-
mains to be seen whether or not it will
last.
Weakness is attributable to the COM
bination Of political uneasiness center
ing in Geneva developments, the roper
cussion of Wall Street pessimism and
local depression factors. The latter is
applicable especially in Germany. where
| the fiscal deficit Is now estimated to ex-
! coed 300 millions, or equal to the deficit
of nearly all the rest of Europe COM
bined.
Commodity markets are very irregular
| Copper has dropped to the lowest level
In IS years, lead to the lowest in %
| years, and zinc to an all-tirne low. TIN
rose on further restriction proposals. but
subsequently, partially relapsed on fears
OF the release Of stored stocks of low
| grade metal. Wool Is weaker Jute has
again stagnated, though there is a IS
per cent crop shortage in prospect
Cotton has entered new low ground
Rubber alone has shown indications of
natural resistance, while wheat has con-
| tinued steady on continental and
Oriental buying.
Trade Figures Improve.
Some encouragement, however. Is to
be drawn from April trade figures
which reflect larger imports of raw ma
terials and better exports Of manu-
features. Slow redistribution of capital
continues. Retail sales are holding up
surprisingly, and 1t appears current pro-
duction is passing more rapidly to con-
sumption. But the fact remains that
conditions lack vitality and confidence.
A new depression phase seems to have
opened, namely, In the scaling down Of
related values in retail prices, wages
and security values. toward levels al
ready established by the primary COM
modities. 1t Is not surprising that re-
sistance to this phase Of def1ation has
caused large-scale wage strikes momen-
tarily in France, Sweden and Poland,
but TO be expected throughout Europe
during the Summer. The prospect,
apart from seasonal pick-ups, is in
creaSingly one OF protracted basic re-
equilibration and sterilization, and
probably 1t win be months before the
foundation of consistent recovery can
be expected.
To be featured from the point Of
view Of events of the week is the Sec
ond tin restriction conference recon-
mending q further Is per cent cut, the
opening of the London wheat confer
ence, where the American view of over
production stands in the minority
against views not of overproduction,
but of underconSumption attributable
primarily to tariff descriptions of normal
distribution, and to the opening of the
sessions of the League Of Nations, at
which attention centered and was
focused on the general uneasiness In
connection with the AuStro-G German
Anschluss proposals. Consent Of Austria
and Germany to submit their program
to The Hague Court for announcement
on its legality has greatly relaxed i'm
mediate fears that the European po-
litical situation was heading to show
down, though it Is not to be forgotten
| that the issue actually is only deferred
by this action.
Austrian Crisis Eased.
Meanwhile, the threatening situation
In Austria arising over the Credit
anstalt crisis and government efforts to
prevent its collapse has likewise greatly
been eased through the consent of the
Leagues Control Committee to further
the 20 million dollar Austrian govern
ment foreign loan.
That which Is most notable in the
general European situation Is that at
no time since the war has the Euro
pean structure arbitrarily imposed by
he Versailles treaty been more IN q state
OF fiux. At no time has the hegemony Of
France and its allies been more threat
ened than by the Austro- German initia-
tive to burst THESE artificially imposed
restraints. Unless Paris and Berlin are
able to revive a mutual Locarno spirit
or unless reparationS burdens are
lightened, 1t is entirely possible that
the pent up explosive forces in Ger
many will seek an outlet either through
Austria to the Balkans and the Near
East, or towards Russia. 1t Is regret
table that at this moment the only
Frenchman who so far has shown abil-
ity to reconcile the Franco-German
viewpoints on the eve of
resigning his position as leader OF
French foreign policy and guiding spirit
In the stormy inter- European council
chambers.
Bonds Strong In London.
London reports business Is not good.
The sharp rise in tin prices which fol-
lowed the news from The Hague that
representatives at the world tin con-
ferences had agreed on further pro-
duct.on cut of Is per cent. was short
lived. On the stock market, industrials
are nat Only the demand for gilt
edged securities Is booming and this
following the cut in the rediscount rate
to 21a per cent lowest since 1900, and
fresh rumorS Of pending conversion
issue.
Business in Paris Is maintaining the
slight tendency toward Improvement
evident during the last three weeks.
For the fourth consecutive week regis
tered unemployment is down, this week
a full 2 per cent. On the other hand,
100000 textile workers in the Roubaix
district have gone on strike and another
million are likely to be affected.
In Berlin, suspense over the Austro-
German issue, and the pending ruling
Of The Hague tribunal, combined with
the strong financial anti-union pressure
upon Austria, are factors of uncertainty
and uneasiness to business in the next
months. Another perturbing factor is
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