Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-20
FOREIGN BUSINESS
FAILS TO REGISTER
SEASONAL ADVANCE
Buyers Still Cling to Policy of
Small Hand to- Mouth
Purchasing.
COMMODITY PRICE LIST
SHOWS STEADIER TONE
British Securities Markets Are
BuOyed by Growing Demand
for Tariffs.
specIal pispatch . rhe star.

Special Dispatch to The Star.
NEW YORK, September Ie.-Cable
and radio dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending Sep
TENDER 10:
Europe-Although August trade failed
to maintain the July Improvement. the
first breath Of belated seasonal move
ment, II still more anticipatory than
actual, appears detachable in commodity
market and industrial reports, eSpe-
cially in England. However, business
everywhere still Is reluctant to make
long-term commitments and activity
continues to be restricted to hand-to.
mouth volume. The insistence Of buy.
ers on immediate deliveries, 1t is hoped,
indicates that more public consumption
mas developed than has yet found re-
nection In production.
Commodity prices held reasonably
steady this week, except copper, which
feH TO new low on increased world
stocks, understanding restricted pro-
duction. Among the non-ferrous metals
lead now offers the best prospects, with
users stocks exhausted and new ar.
rivals limited. Zinc stocks also have
declined consistently during the last
four months, though TO a less-than-
expected degree. The position Of tin
hinges on whether production control
can keep output below possibly still
lower consumption resulting from a
year Of dwindling food packs and of
restricted consumption, and on how
long 1t viii be before efforts to regu-
larize the position of the metal begin
to show results.
Advance In Cotton.
Cotton has just turned up. Some
spinners feel present prices are safe
for long-term plans, but textile de-
mand, which Is believed to be in abey-
ance, awaits the same confidence from
traders. Jute is holding its recent mod
crate advance on confirmation that the
Indian crop win be only half as large
as last years. September wool auctions
in London opened substantially below
July levels. Cereals are steady, notwith-
standing record initial Russian wheat
shipments.
LOndon-The demand for tariffs by .
growing bloc of business and industrial
interests has led to the appointment
Of cabinet committee to consider the
country's trade balance, which has be-
come highly unfavorable. Stock mar
kets have rallied on this news. Gilt
edge securities are buoyant and the
general undertone has strengthened.
It is daily becoming evident that q
tariff for revenue is inevitable In Britain.
Political parties are split among them
selves on the question. If national
election Is delayed for any length Of
time, it is for this reason. The Tories
stand for general protection, the Liber~
ais for the prohibition Of luxury inn
ports. Labor for moderate revenue
tariff. '.t.t+
Recent economy measures are pass
ing Parliament successfully, but even
their supporters admit the inevitable
consequent rise of unemployment and
Stacker trade, thus making the Winter
outlook black. Well based estimates of
Winter unemployment run as high as
3,750, 900.
Paris.-Latest statistical indicators
show no business Improvement. The
weeks unemployment totals increased
another per cent, with further de-
velopment expected. Industrial activity
continues subnorma1, notably IN mining,
metallurgy and textiles. July coal pro-
duction was 10 per cent below last year,
with no clearance of excessive stocks
despite the recent introduction Of Inn
port licenses. The July general indus
trial index was down another per cent,
or per cent below the end OF 1880.
The paper industry alone Is resisting
the trend.
wholesale Indices.
Wholesale indices declined per cent
in August, but again hardened in the
second week of September, leaving the
exaggerated spread between foreign and
domestic prices unchanged when com
pared with January.
The stock market has touched new
lows. but now is more resistant. August
security issues totaled $14,000,000 COM
pared with last years monthly average
Of $40, 900 ,000
THE recent extension Of the import
license system to lumber and wine, ac-
cording to authoritative reports, shortly
is to be extended to other goods, all OF
which is indicative of the accumulation
of French policy to avoid or limit the
effects Of the depression by isolatlng
France from the rest OF the world
through retraction to system OF 90
nestle Self-suficiency. These develop
mer1ts are inconsistent with oft-repeated
assurances of French cooperation in
international economic reorganization,
and also tend to reduce the importance
of France as a world economic factor,
save as it Is Offset by colonial expansion.
Berlin.-A new wave Of pessimism ana
uncertainty Is paralyzing formal stabili-
zation Of German business.
The change in sentiment Is supported
by the following factors: ID the
short-term agreement, effective Septen1-
Der 1, which calls for immediate trans
fer of 10 millions equal to the amount
of next months plus current unpost-
poned Interest,", service on long-term
debts and total foreign payments ag-
gregating minimum Of $50 millions
before the year end. The export sur
plus, which in August reached the
unprecedented total Of SO millions
(resulting from drop Of 10 per cent
in imports and only per cent In
exports) is theoretically sufficient TO
cover the deficit, but it Is questionable
to what extent the Reichsbank has
secured virtual control OF foreign ex-
change and other proceeds despite the
minute, irksome regulations hamper
ing legitimate trade but leaving techni-
cal loopholes for capital fight Be-
sides, maintenance of the present rate
Of export surplus Is doubtful In COM
ing months in view Of the marked fall
ing OF of machinery and other ex-
port orders; (2) the temporary de-
probation of the reichsmark in New
York and other foreign markets, though
not exceeding 3 per cent, Is believed
to be the result of offerings of mark
balances created by the sale Of secur-
tiles on foreign account In Germany,
all OF which increases nervousness; CD
the nominal equilibrium Of federal
finances has been reached by shifting
the main unemployment burden to COM
munal finances which now are IA q
critical state. Berlin is unable TO meat
CONTINUED on Second Pago1