Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-25
FOREIGN BUSINESS
CONTINUES QUIET
DURING LAST WEEK
Disturbed Political Outlook
influences Course of Trade
in Europe.
PRICE OF COMMODITIES
SHOWS LITTLE CHANGE
Indications of Capital Exodus
From England and Ger.
many Seen.
Special Dispatch to The Star

Special Dispatch to The Star.
NEW YORK, January 24.-Cable dis
patches to The Business Week give the
following survey of business abroad for
the week ending January "a:
Europe.-Conditions are unsettled.
The Midwinter lull has set in and bust
ness momentarily Is little more than
marking time. The lack of economic
vitality and the disturbed political out
look have tended to sour sentiment
Commodity prices are irregular, but so
far have held fairly we'll. On the other
hand, stock markets, especially in Ger
many, have Sagged throughout the week.
wise have been disturbed by tie exigent
movement Of funds and heavy with
drawal of dollars. The Australian
pound has suffered a further drop.
Welsh coal miners have gone back to
work pending arbitration on the wage
dispute, but the lockout of 250, 900 weav-
erS over the ''more-loomS" issue has
taken effect in Lancashire, and unless
it is quickly settled will soon embroil
the spinning section. Following final
agreement between the various sugar
exporting countries, Thomas Chad
bourne, originator of the plan, is nego-
tjating to extend it to include stabiliza-
ton of production in non-exporting
countries. as well as in Russia, the Brit
ish Dominicns and Peru.
Commodity Prices Irregular.
Commodities are uneven with steel
prices cut. The general trend of bust
ness, though it shows no material loss
of ground, so tar has failed to bring the
revival expected in the new year. The
course of commodity markets indicates
that consumption is still within hand
to-mouth volume. Selling pressure, mo-
mentarily but probably only temporarily,
has eased on grains and cotton. Nom
ferrous metals have continued their
rapid fluctuations, sometimes over a
considerable range, which has been
characteristic of recent weeks, though
generally they have sustained higher
rather than lower levels Silver, how
ever, has lost about half Of its recent
recovery
There are indications of an exodus of
domestic capital from England, and es-
pecially from Germany-from England
due to fear of a further increase in tax
alton; from Germany, due to increasing
national discomfort. AS a consequence,
sterling again Is skirting the export
gold point against dollar exchange, so
also the Reichmark against the dollar
and leading European currencies. thus
suggesting the prospect that there will
be gold losses from Europe to the United
States. 1t is notable in this connection
that the Reichsbank since Christmas
already has lost IS millions from its
foreign exchange reserve, of which only
Is millions are due to reparations pay
mentS. The reserve is exactly cut in
two. Funds are not moving to, but
away from, higher to lower bank-rate
Levels, iustancing the impotency of bank
rates to exercise normal regulatory
functions under existing conditions.
London.-The business tone is gen.
orally poor. Though the coal strike has
come to an end on temporary terms
dictated by the owners. final settlement
awaits a decision from the National
Cancellation Board, which is endeavor-
ing to find some basis for economy
other than wage reductions. Lancashire,
meanwhile, Is faced with 100000 new
unemployed cotton workers who were
locked out by employers unwilling to
meet workers demands to return to
four-loom system.
Shipping figures disclose that laid-up
tonnage, as expected, exceeds the high
est record tor last year, which was 900,-
600 tons idle. World tonnage, excluding
the United States Shipping Board YES
sells and tankers, is Loaf vessels, total
of 4.500000 tons. British launchings
during the last quarter of 1880 were
down $4,000 tons, to a total of 297,-
900. Tonnage started, even including
the giant new Cunarder, was down 49,
600 tolls, to total of only $4,000.
Paris-Business has not yet grasped
the seriousness of the announcement of
the finance minister that the current
fiscal year will close with an estimated
national treasury da6Cit 0f 60 millions
Some anxiety already had been caused
by declining tax revenues, but no deficit
of such proportion was anticipated. The
immediate loss can be covered from pre-
existing treasury SURPRISES, but the con-
dition of government finances in the
coming year now appears to be dis
tinctly serious.
With business now shouldering more
than one-half of the total tax burden,
the prospect, not only for the coming
year, but for the year after give cause
for justifiable concern, though business
and public opinion are not yet alive to
the urgent need for budget defiation.
That consciousness to price imitation
Is now fully awake is indicated by the
storm OF opposition to proposals of the
agricultural minister, M. Boret, who pro-
poses to raise and stabilize domestic
wheat prices at SITS a bushel by in
already the highest in the world, to 81.
Berlin.-A stagnant stock exchange
succumbing to the sales pressure of re-
patriated German stocks with new low
records since the beginning of the de-
preston. and the heavy decline in the
Reichsbank holdings of foreign bills are
dominating factors determining the pes
simistic tone during the past business
week. It Is further supported by I'M
satisfactory sales figures just released by
the steel trust, and the continued down.
ward trend of other business indicators
The reassuring statements from finance
minister, DR.. Dietrich, regarding the
condition of federal finances at the
opening Of the budget debate in the
Reichstag, and the favorable returns on
1880 foreign trade with the remarkably
high export surplus, fail to outbalance
the depressing influence of adverse
factors.