Evening star., 1931-12-20
FOREIGN ECONOMIC
SKIES OVERCAST BY
NEW TARIFF MOVES
French Surtax Adds to Un-
certainty Over Immediate
Business Outlook.
POUND STERILIZATION
EFFORTS ARE lNDORSED
Most Industrial indicators in Ger
many Continue Declining Trend.
Hitlerites Feared.
Special Dispatch to The Star.

NEW YORK, December 19. - Cable
and radio dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
World Summary.-A Christmas truce
has temporarily thrust aside the most
threatening world problems affecting
business The tariff orgy probably has
passed its peak; will taper off in piece
meal negotiations and bilateral adjust
mentS. Hitler coup is not likely before
mld-January Developments at Basle
and Berlin only likely source of upset.
Germans have accepted wage-price cuts
philosophically. The British are aware
that the Autumn furry is not holding
out. Japan has new gold embargo;
expects to recapture trade advantages
With deprecated yen. China is shifting
governments and clamoring for a firmer
policy in Manchuria.
London.-Reaction from earlier op-
timism is still evident. The undertone
Is distinctly nervous. Even the chair
men of large Industrial companies can
hardly be described as glowing with
enthusiasm over the present situation.
Depressing Factors.
Most depressing factors in summary;
Tariff complications, chiefly over the
French Surtax; fears of a German crash
early in the new year; heavy internal
taxation restricting domestic spending.
spark OF optimism comes from the
announcement Of the governments pol
ICY not to initiate currency, and to work
for pound Stabilization, and the an
nuncement from Washington, through
Secretary Mellon. that there should be
fresh consideration Of Europe's ability
to meet war debt obligations.
Paris.-Business conditions still show
no improvement Registered unempIoy-
ment, merely an index Of the total. has
risen Is per cent on the week. and
crossed the 100000 mark, a postwar
record.
November trade sh.wed a further
shrinkage in volume and value, but the
adverse balance of $4,000 900 was the
same as October and compares with
over S40,000,000, the average for pre-
yious months.
Among the most recent indicators,
compared with last year: General pro-
duction is down IT per cent, rail traffic
10 per cent, the sales tax revenue 10
per cent, volume of imports IA per cent,
exports Fl per cent. Bankruptcies are
up II per cent. The retail index is now
az tllc 1870 leNel, The wholesale INDEX
is "a per cent below the 1928 average.
Berlin.-The business of digesting the
provisions of the last emergency decree
and the readjustment of prices and
money rates is proceeding less pain
fully than was anticipated. although in
dividual hardshipS and unexpected alb
surdities call for administrative correc-
ton.
Unemployment Gains.
Business temporarily is relived of the
pressure of internal uncertainty with
the danger of a pre-Christmas political
crisis removed, thanks to the decision
of the Socialists to continue to support
Rruening and vote against a convoca-
ton OF the Reichstag. Fear of Hitler
has caused them to swallow, for the
time being at least, the wage-cut pro-
visions in the decree
With unemployment reaching the S.
c00,000 mark in early December, most
Industrial indicators continue their
downward movement