Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-22
FOREIGN BUSINESS
SHOWING EVIDENCE
OF IMPROVED TONE
Commodity Prices Display
Firmer Character During
the Last Week.
MORE ACTIVE DEMANDS
GIVE STIR TO MARKETS
Employment Situation Aided by
Increase in Plant
Activities.
Special Dispatch to The Star.


abroad for the week ending February
81:
EurOpe-Notwithstan several I'M
settling developments and the disap-
pointing January foreign trade returns
signs OF business improvement are more
evident this week than at any time
since December. Commodity markets
are holding their ground; declines are
few, and such as have occurred have
been shallow.
Non ferrous metals braced themselves
conspicuously. From various markets
come reports that a somewhat larger
volume is moving. Coal iron and steel,
however, have not shown any improve
ment and present curtailed production
probably will be extended through most
of the second quarter, Notwithstanding
the moderate, but widespread, improve
ment in engineering lines. Textiles,
clothing, footwear, and generally those
industries producing staple consumables
are feeling the new stirring of demand
which is substantiated by reports from
the retail trades.
Unemployment Situation.
Germany is the first country to show
slackening rate in the increase of
unemployment. Prophecies now indi-
cate the peak will be turned early in
nificant because, of all the countries in
Europe, the depression was greatest in
Germany. Practically all other coun-
tries, except France and Spain, note
some gains. France appears to be NOV
ing steadily toward a serious crisis Of
imitation. In Spain, long -simmering po-
litical antagonismS have come to a
head. Parliamentary elections scheduled
for March, have been called off. The
country now faces a trial of strength
between the forces of monarchism and
republicanism. Developments during
the next few weeks will throw new
light on the situation. which remains,
as far as the rest of Europe is con-
cerned. entirely localized.
Continental money markets are I'M
changed, but London rates have so far
Stiffened that the Bank of England has
been forced to reverse its policy and
buy, instead Of sell, bills. Snowden'S
solemn warning that Britain has reach
ed fiscal crisis has lent strength to
the movement, now becoming nation
wide, for greater economy, both in ma
tional expenditures and standards Of
living. On the other hand, the state
ment paralyized recent slowly reviving
investment confidence and provoked
fresh exodus of capital, because Of
the fear Of further increase in tax
alton.
Great Britain has opened stimuli
taneous negotiations with nine CONT
mental and Scandinavian countries
looking to reduction of tariffs, especial
ly on machinery and textiles. 1t will be
recalled that when the Geneva tariff
truce failed, the League of Nations
Council adopted recommendations for
regional or bilateral negotiations, of
which the Scandinavian tariff truce, re-
Gently concluded, was the first outcome.
Present negotiations constitute an i'm
portant further development. Prepara-
lions to establish an inter European
agricultural mortgage bank under the
auspices of the League of Nations is
making rapid progress The completed
plan has been submitted to the League
Committee and will be submitted to the
Council in May
LondOn.-General business is clouded
and the stock markets are depressed by
the pessimistic speech of Chancellor
Snowden. by bad rail dividend and poor
company results. The cotton stoppage
has ended by the surrender of employ
ers. leaving the dispute unsettled. The
employers were activated by the desire
to give the cotton exhibition in London
and Birmingham a good start, and to
respond to Snowden's plea in regard to
the general gloomy state of industry.
Markets are unimproved, but rayon and
rubber are f1rmer.
British Industries Fair.
Industry is making a big effort to
stimulate trade through the British In
dustr1es Fair. The cotton and rayon ex-
hibitions opened Monday in both Birm-
ingham and London. The fair reports a
record has been booked for 10 miles of
day of 5000 home, and 500 overseas
buyers. The largest rayon order on
record has been booked by 10 miles of
fabric, the buyer previously buying the
continental product. Publicity for these
exhibitions is strengthening general
morale.
Paris.-There is no change in the
measured development, of the local de-
preston cycle. The spread of unem-
ployment and part-time employment
to virtually all industries and the con-
tinued rise, instead of decline, of living
costs gradually is creating serious labor
d content. According to government
estimates, 100000, or IA per cent of
the labor employed in the larger in
dustries, is now wholly or partially idle,
indicating a probable total number of
Jobless in all enterprises well exceed
ing 100000 Economic conditions
continue to be characterized by the in
hation of currency, prices, tariffs and
national expenditure.
On the score of tariffs, the Chamber
this week approved another 20 per cent
increase in the sugar duty, while there
Is probability Of a further increase in
wheat duties. already the worlds high
est. The effect of these measures will
be still further to initiate living costs,
already said to be the highest on the
continent AS this trend continues
the sharper and more difficult must
be oef1atlonary reaction when it comes.
Berlin.-The firner tone on the stock
market, resulting In q further rise of
the stock index during the past week
from 79.1 to S1.2, Is the only palpable
symptom that the psychological upturn
to business has been maintained, since
most other indicators, at best, have
manifested a tendency to decline at an
attenuated rate. The foremost factor
more plentiful money for capital mar
kets, a prerequisite to any business re-
vival-is entirely lacking in Germany
Hitlerites Watched.
The political situation also remains
unsettled. Although the exodus of Isl
Nationalist extremists, of total of SIT
members of the Reichstag, has resulted
in mere quiet atmosphere within
Parliament itself and Is likely to facili-
tate smooth passage of the budget bill,
business Is dismayed at the intention
Of the Hitlerites to start q vehement
campaign throughout the country de-
nouncing 1.-THE Young Plan Reichstag,"
and preaching 0isobedience and pos
Sibly civil war.