Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-26
FOREIGN BUSINESS
ACTIVITIES REMAIN
in STAGNANT STATE
Trade Conditions in Europe
Await Result of German
Credit Plans.
HEAVY LOSSES OF GOLD
DEPRESS BRITISH POUND
Commodity Prices Continue Low,
but Wheat and Coffee
Are Higher.
Special Dispatch to The Star.

I'VE" 4S1NhJ July ZO.-SaDtc anu
radio dispatches to the Business Week
give the following survey of business
abroad for the week ending July IS:
Europe.-BusinesS activity has been
subjected to a process of refrigeration
and Is awaiting new Developments Of
the crisis in Germany, whose foreign
trade is completely disrupted by meas
ures for government control over none
tary disturbances. Stock markets are
temporarily alternating: conditions in
commodities are no better
The most disturbing factor Of the
week Is the fresh drain on British gold,
amounting to IS millions in the six days
before the discount rate vas raised 20
312 per cent. French and Dutch were
the greatest takers.
The British position, as an interna-
tional banker, is likely to be sorely tried
in the next few days despite the cur
rent opinion of the English that they
can easily weather Sl50,000, 900
gold less without undue inconvenience
to the London money market. The
present rate Of efflux, however, is too
precipitous to continue more than an
other week without producing an anal
ogous financial crisis such as Germany
has just experienced. This is due to
inadequate knowledge by foreign coun-
tries Of real internal conditions. Ac-
cording to Parker Willis, this Is the
most important reason why Germany
was allowed so long to continue in the
uneconomic plight which has existed
for many months.
French Not Optimistic.
The fact remains that despite the
1NncaI ~ H. rt% ~
ing their ability to tide over this criti-
cal period France and Holland are not
so optimistic. French holdings alone in
England are conservatively estimated
well above one billion in balances and
deposits, together with holdings of bills
and treasury bills which as customary,
at first premonition, she will repatriate.
This would weaken, if not entirely
wreck, the English money market. The
feeling is not uncommon in France
that French banks should withdraw
these funds from England in retalia-
ton for the recent English pro-German
sympathies.
Moscow adroitly suggests that the
only real point of contact in the seven
power conference in London was the
fear Of general proletarian revolu-
ton. Otherwise, everybody was for
himself
BerIin.-Despite the gradual relaxa-
ton of the bank moratorium, business
is increasingly hampered by other re-
Strictions added daily by new emer-
gency DEGREES. Under this drastic
paralysis of the credit machinery, the
country cannot keep going for long.
That business and the public are do
ing their best to adapt themselves to
the regime Of mitigated bank holidays
and still are showing remarkable disci-
pline was manifested in Berlin Monday,
when the banking moratorium was
partially removed. Only 4 per cent Of
the depositorS in savings banks availed
themselves of the new opportunity to
secure small cash payments. Food
supplies are functioning normally, and
prices have not increased. Other re-
tail trade is practically dead. Buy
ing is reduced to an absolute minimum
suggestive of the complete absence OF
inflationist psychology. Street rioting
has been exaggerated in the foreign
press Actually it is limited to a few
western towns and even there the police
force is in absolute control.
Markets Remain Stagnant.
Rumors are current that Americans
are interested in public utilities with
the object Of taking over properties in
some Of the financially distressed COM
munes. Allegedly the National City
Bank shows an interest in the communal
owned shares of Rheinisch Westfall-
isches Elektricitaetswerk-A. G.
London.-The increasing seriousness
of the German crisis, the reality of
having the negotiating statesmen of
seven countries meeting in London, the
menacing gold drain-120,00 100000 left
England in seven dayS-all have had
SOLDERING influence on business. There
are, however, no signs of panic. Stock
and money markets have reacted most
conspicuously, but, except for erratic
fluctuations Of the exchange rate, there
has been no great change during the
week.
Cotton and wooden textiles, iron, steel,
and coal are all quieter. OF all the
commodity prices, tin and corn show
the greatest weakness. Wheat and cof-
fee are up. The first empire sugar
conference is meeting in London with
40. delegates attending. Marketing
problems occupy the center of atten-
ton, with empire preference urged.
Paris.-Business has been doubly
sensitive to news from London. OF
basic importance is the outcome of
the London seven-power conference
and the meetings following in Berlin.
Related, is the critical situation, which
has developed in Britains own bank
ing world and which has caused heavy
London Withdrawals by France and
Holland.
The Bourse is cratic, with prices
generally down. Commodities foiloweS
the world trend with no unusual activ-
ity in any line. Signing Of the trade
agreement with Russia has aroused the
interest of manufacturers of electrical
equipment and machine tools, who an
ticipated a prompt renewal OF Soviet
business on much larger scale.