Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-14
POLITICAL FACTORS
INFLUENCE FOREIGN
BUSINESS OUTLOOK
European Interest Centered
on Preparations Conferences
at Chequers and Berlin.
JUSTICE OF REvISI0NS
DEMAND is CONCEDED
But All Parties Apparently Expect
United States to Bear
the Burden.
Special Dispatch to The Star.

NEW YORK, June l3.-Cable dis
patches to the Business Week give the
following swift survey of business
abroad for the week ending June Is:
Europe.-Industrial and commercial
developments are minor this week,
being entirely superseded by the cur
rent vital financial and political prob
lens.
In North France the textile strike
is nearing the close Of the fourth week
without any sign of let-up. Labor
troubles are brewing anew in England,
particularly in the wool, textile, engi-
neering and the lace curtain industries.
The center of European interest is
CheQuerS and the new Berlin confer
ence, which is expected to bring Ger
many's of1cial demand for reparaticns
reduction or for a moratorium. The
crucial stage has arrived, where Ger
many Is ready to declare itself on the
verge OF bankruptcy. The move IS
fastened by the Creditanstalt troubles
in Austria. in which German interests
were heavy, and the French are forcing
a virtual breakdown Of the AnSchluss.
which is also a factor in bringing the
revision Of the Young plan to head.
Germany points out that the 20 per
cent rise in gold value since the sign
ing OF the Young plan, accompanying
a constant decline in business, Is max
ing the burden unbearable.
Look to U. S.
All European parties are interested
and virtually agreed en- the justice Of
the revision demand, but all look to
the United States to bear the entire
burden of reduction. France would
rather see Germany bankrupt, or all
payments stopped by mutual European
consent. than agree to any material
arms reduction. such Is her fear OF
German militarism.
The publicity given Germany's pre-
dicament is causing heavy Withdrawals
of foreign funds. particularly by the
English, while the flight of domestic
capital is commencing anew.
Madrid reports that the early depar-
| ture of the governor Of the Bank OF
| Spain for Paris to negotiate loan with
| French bankers under French govern
! ment auspices Is confirmed. This re-
calls to international bankers the SUBJ
stantial loan made in 1918 by the
| Spaniards to the French. The position
now is reversed. The Republicans have
| not forgotten the treatment by France
of political exileS and the French are
probably eager to wipe out this resent
ment.
LOndon.-British business Is tagging
| though the more cheerful tone in Wall
Street Is reflected on the stock market
this week. Home industrialS were ap-
preciably better, especially match shares
while textiles were flrmer. Oils were
more active. with leading shares higher
Mining stocks were good. But the re-
action to Chequers is still felt.
Among the commodities, rubber Is
most favored, though lead prices have
firmed, and it is rumored that power
full syndicate is being formed to with
draw 10000 tons of tin from the market
in a final effort to stabilize the price
AS abroad, the rayon industry Is i'm
proving.
Paris.-France is unable to shake of
the sluggiShneSs which settled down on
business two weeks ago. Unemploy-
ment has declined another 4 per cent
but no other indicators support any
sparks Of real optimism. Rail receipts
responding figure.
Coal Stocks Accumulate.
Car loadings, in spite of q hopeful
pickup in May, are down again, are
tagging II per cent behind last year
Coal consumption Is still declining
Production, imports, and exports are
Ialing on, ana OmlnouS STOCKS are &C
cumulating at the mines. The textile
strike in the north is an additional
threat to normal consumption.
Berlin.-BuSinesS now is completely
occupied with the problems of digestins
| the intricate provisions of the emergency
| decree and preparing for the readjust-
! ment to the new burdens it imposes
| The future, with the continuation ir
Berlin of the Chequers conversations, Il
scarcely any brighter or any more Sc
| cure.
AS usual. political uncertainty ha!
caused heavy Withdrawals of foreign
short term credits, and is proving (tc
the grim satisfaction of harried Ger
man bankers) that this Is the weakes
point in German finance, the very thing
the country Is trying in the new meas
ures to provide against. The flight o.
Reichsbank gold and foreign bills II
the last week exceeds so millions.