Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-01
Advance in Commodity VAL
ueS Held Favorable Factor
for Trade.
STEADY TONE is NOTED
IN STERLING EXCHANGE
Unemployment Believed to Have
Reached Peak in Many
Lines.
Special Dispatch to The Star.

NEW YORK, February 28.-Cable
dispatches to the Business Week give
the following survey Of business abroad
for the week ending February 20:
Representations reflect a broader
upward movement than at any time
since the depression began. Previously
uncertain commodity price movements
are now converging in an advance upon
wide front. Stock markets, after
marking time at somewhat below pre-
vtously established highs, have been
more buoyant In the last 10 days.
Sterling is steadier. There is q rlmor
that the French bank rate may be
| further lowered. This would tend both
to consolidate the improvement on the
exchanges and to accelerate exports of
French capital.
Unemployment appears to be close
to, II not already to have reached, the
Midwinter peak. Declines in some
trades already have begun, particularly
In Germany. Overseas reports like
wise are more favorable, notably in
Australia, India, South Africa and
Argentina, while much announcement
is being derived from the better trend
In the United States. Political condi-
tons are quiet, and the unexpected
possibility has arisen of British media
ton to compose Franco-Italian naval
differences.
Commodity Prices.
Rising prices and expanding volume
in the majority of commodity markets
| are the feature Of the week. This is
| particularly true in non-ferrouS metals
and textiles. Confidence that raw ma
terials have definitely bottomed has
perceptibly widened and strengthened.
| Industry, even failing an appreciable
increase in immediate demand, is be-
ginning to reconstitute raw material
stocks which have been allowed to de-
| cline to bare hand-to-mouth levels, In
the case Of some industries, notably
those producing staple consumables,
better activity is already reported. In
otner groups, improvement, il still
more sporadic than general, neverthe-
less Is beginning to multiply. In stiIl
other cases, the technical position of
the commodity proper has improved,
notably tin, following governmental ap-
prevails on production restriction agree
ments. Tin prices in London scared
during the week, bringing the total
gain. during the month to 10 per cent.
1t Is notable that the general COM
basic as seasonal.
Iron and steel continue to be the
| outstanding exception to this better
| trend, and it is expected that the COM
ing carel meeting in Paris In May will
even further reduce March quotas, This
lag Is not surprising when it Is con-
sioered that the metallurgical industries
sustained prices longest, due, partly, to
the fact that production was longest
sustained after the depression began.
The current revival will probably find
It's flrst expression in consumable goods
| to meet the requirements of the indi-
4 wherein cfo ~,
Europe, play lesser part than in the
United States, due, among other rea-
sons, to subordination to the auto
motive factor in Europe.
LondOn.-Actual business Is quiet, but
there Is a better tone, partly engendered,
no doubt, by the success Of the British
industries fair and the cotton and
rayon exhibitions. The end of the cot
ton stoppage, coinciding with better
reports from India, has given q per-
cepttble stimulus to Lancashire. Raw
cotton values are up Is points and wool
prices have maintained o better level.
Wheat, sugar, cotton, jute, 1inseed oil
and all metals advanced. The stock
markets, after q depressed week, bright
ened Monday with gilt-edged leading.
Stock Market Sentiment.
Stock market feeling is affected by
Wall Street, reaction from political
scares and the advance in metals and
basic commodities with renewed conf
dence that the slump Is on the mend.
Sterling has followed stock markets by
| q sudden recovery after a depressed
week, with bank efforts to keep money
rates above Paris and the United States
still prevailing.
Labor is split more definitely on the
Mosley campaign for development loans
and import boards. The political posi-
ton is thus In fillx and nothing Is
certain but increased taxation III the
April budget, with tobacco. drinks and
petrol expected to be the main sufferers
Of indirect taxation.
Transformation momentarily are
featureleSs. Business reports continue
to stress high prices, wages and taxes,
resulting in high production and oper-
ating costs and consequent increase
in foreign competition on the domestic
market and the loss CT competitive
ability abroad. January trade figures
confirm this trend. Imports of manu-
featured products, with loss of
millions compared with a year ago,
show the least decline of any category,
| whereas exports of manufactures are
down ~ millions, the largest single
category loss. Luxury trades, naturally,
are particularly affected, but so are the
key industrieS-coal, metallurgical, and
chemical. Several branches of the tex
tile industry report steady diSintegra-
ton. Efforts to reduce coal wages in
the face of present inflated living costs
have called forth the threat of a gen.
eral miners strike and occasioned gov
eminent intervention.
Berlin.-The business tone Is uncer-
tain and trade and industry are doubt
full whether the signs of sterilization,
noticeable since the beginning of Feb
ruary, mean the turning Of the tide o.
merely q temporary halt of the de-
preston slope. The outstanding fea-
ture Of the German situation Is the
complete lack Of seasonal relaxation Of
the money market both call and time
rates remaining practically unchanged
since the year end.
Exchange Rates Waiver.
Foreign exchange rates continue to
oscillate dangerously near the export
gold points, indicating that the fresh
inflow Of foreign funds which was ex-
pected after the contamination of the
French credit has not matsrialiZed
Unemployment on February is totaled
1891 900. The increase during the first
half of the month was $1,000, almost
exclusively in the seasonal trades. The
percentage of unemployed trade union
members rose In January from 31.8 per
cent TO 34.5 per cent, members working
on short time rose from 1853 per cent
70 LIS pax cent Il y tutcraSttng that