Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-10
Definite Trend Has Not Yet
Developed, but LetdoWn
Is Being Felt.
SN0WDEN BUDGET FAILED
TO PROVE TURNING POINT
Unemployment in France Shows
Improvement, Declining / Per
Cent in Week.

Special Dispatch to The Star.
NEW YORK, May 9.~-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending May 9:
Representations reflect a let
down after the Spring rally and are
unsettled. No definite trend has yet
developed. Certain commodities show
further weakness, notably copper.
which has broken recent lows. but this
is largely due to oyeremphasis of sta
tistical positions of visible supplies,
which do not reflect the lew levels to
which consumers reserves have fallen.
Heavy industries are slow to show
improvement, but activity gradually La
increasing in a broad fringe of miScel-
laneous enterprises. Construction is
reviving. Foreign trade volumes are
larger. Unemployment is shrinking ap-
preciably in many countries. In Ger
many "dolers" alone are d5wn 400, 900
for April. Crop prospects are good.
Money continues easy. Slowly but
steadily capital is moving from centers
OF congestion into anaemic areas, miti-
eating stringencieS. The gold flow
from Paris to New York apparentiy has
been stemmed; London steadily is abb
sorbing South African new gold. It is
expected the gold reflux from Paris
now will be smaller, probably due in
part to the beginning of the tourist
movement. Exchanges are quiet; for
the first time this year no single cur
rency, even the peseta, is under pres
sure.
Locally. England is having difficulty
in digesting Snowdens budget, which
af GYck How aI
many, likewise, is faced with new fiscal
troubles, while the rise in bread prices
has weakened confidence in Bruening's
ability to reconcile a policy of CO.
ordinating wage and proce reductions
with the conflicting policy Of agricul-
tural protection.
Spain Making Progress.
France also faces a collision between
tariff inflated prices and the necessity
OF debating industrial operating costs.
Spain. however. is making progress un-
der the new republic Italy finally has
announced a 100000, 900 5-year per
cent domestic premium loan, to be is
sued at 95, to refund the nine-year
treasury bonds maturing In November,
with a 5 per cent bonus to holders who
convert. The bulk is said already to
be placed with banks and insurance
companies. This has lessened the prob
ability of further foreign loan.
1t is possible new tensions in inter-
European political relations will develop
when the League meets the second half
of May. Among other things, it viii
consider the legality of the proposed
Austro-G German consolidation scheme.
CZechoSlovakia, at this weeks meeting
Of the little entente, was able to line up
Rumania and JugoSlavia, which have
been wavering toward the preferential
AuStro-German trade agreements, to Sc
cure their adherence and joint indorse-
ment of Brands still somewhat nebu-
lous abstract plan for general European
consolidation.
Budget No Turning Point.
LOndon-The budget announcement,
long awaited and far from radical, has
proved no turning point for business.
Stock markets are off, with the share
index for industrials touching a success
sion of new lows. Metals-copper, tin,
zinc-are down. Lead and silver are a
bit more steady. Rubber is slightly up.
So is coffee. But sugar, cocoa and cot
ton are down.
Exchange is slightly better. More
gold is coming to the Bank of England.
Money Is easier. The British Match
Corporation, insurance companies and
housing corporations are showing good
results.
Encouraged by the trading results OF
Uniever, Sofina and Kreuger & Toll,
investment specialists in Britain are ad-
vising their clients to turn to interna-
tional combines as safer investments
than domestic enterprises. 1t is pointed
out that a worldwide horizontal COM
bine has interests SO widespread that it
must escape the worst effects of any
slump. even a world slump. What it
loses on the swings, it stands to gain
on the roundabouts.
Unemployment Declines.
Paris.-Fcr the second successive
week registered unemployment has de-
cllned ! per cent, but the indicated i'm
provement is only superficial. Funda-
mental conditions are unchanged and
prospects of protracted local depression
remain, with probable serious difficult
ties arising from extreme agrarian pro-
tectionism and budget initiation later in
the year.
Unemployment is only moderate.
Wage cuts are spreading quietly. Tex
tile workers in the RubaiX-Tourcoing
district may cause some trouble when
their cuts become effective May IL.
Industrial antagonism to the govern
ment's policy of extreme agricultural
protectioniSm Is mounting. With wage
cuts, industry is seeking to win the sup
port of labor in demanding a reduction
on foodstuffs duties. This weeks verti-
cal increase of lis per cent in the rye
import duty and new farmer demands
to double the duty on butter have
brought fresh outburSt. Living costs
still are mounting-are destined to con-
tinue to rise unless foods can enter the
country more cheaDly
Berlin PeSSimistic,
BerIin.-A pessimistic wave has sue
ceeded the spell of Spring optimism.
Apart from the international problem,
the main local factor is the general ques-
tioning whether or not Herr Dietrich's
budget equilibrium will be able to with
stand another depression year. The
alarming falling off of public revenue
calls for drastic new economy meas
ures-may include fresh reduction Of
public salaries by midsummer.
Germany still Is struggling to adjust
agricultural tariffs to disturbing in
crease in the cost of living. The price
of bread has increased 3 per cent of late.
Purse-pinched laborers have raised a
cry that Bruening's economy plan is
falling. If the price holds the govern
ment must lower the prohibitive grain
duties. Farmers then will cry out.
Even now they are provoked that but
ter duties were not doubled on their
request. Increase in the duty on lard.
live pigs and oats may satisfy for Q
time, but the last of the agricultural
NRdaNNen- 1R mai N &aA MM&A1mfaNn--