Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-18
Political Factors Also Exert
Restraining Influence Upon
Industrial Plans.
WORLD SUGAR COMPACT
NOW BELIEVED POSSIBLE
British and French Renew Efforts
to Restrain Useless Gold
Flow.
Special Dispatch to The Star.

the following survey of business abroad
for the week ending January IT:
EurOpe.-Conditions are Gyaia be-
coming overcast after the first bright
week of largely psychological optimism
at the beginning of the year. Labor,
and possible political, conflicts obscure
the immediate outlook: Industrial
activity remains generally restricted
Commodity markets are moving ir-
regularly. Though grains, vegetables,
oils and hides are somewhat stronger,
industrial materials, especially metals,
have manifested uncertainty.
The Stocks and bond markets also are
uneasy, Notwithstanding the new
strength of Young bonds on all
European markets and Brazilians in
London on appointment of Sir Otto
Niemeyer as financial adviser to the
Banco do Brasil. Money, after some
year end stringency, has greatly re-
laxed, largely restoring pre- Christmas
conditions.
Favorable Developments.
Several favorable developments are
notable The possibility of a world
sugar agreement has been renewed fol-
lowing the concession of further
sacrifice by Cuba of an unexpectedly
large export quota to Germany though
the solidarity of the Javans is as yet
not assured.
Negotiations between officials of the
British and French treasures looking
to closer collaboration to check use
less gold movements are being
continued. Authorities already venture
the prophecy that the ultimate purpose
of these negotiations is probably, not
only to establish a better equilibrium
between money markets in the two
countries, but to prepare the way for
the long contemplated loan conversion
in England. Also, there are encouraging
indications of greater investment loan
activity, with definite moves to un-
block French capital congestion. Far
Eastern reports rare less favorable this
week, but the sharp midweek recovery
OF silver from its unprecedented low is
greeted with great satisfaction as tend
ing to strengthen Eastern purchasing
power and enable at least partial full
f1llment of requirements known def
nitely to exist
the outstanding feature Of the week,
though so far they are serious only
in England and Germany.
Political Tensions.
Business has been quick to sense,
and with uneasineSs. the renewed tight
ening of inter-European political ten
sions. This is partly occasioned by the
approach of the next League Council
meeting on January 10, when number
of interviewed and knotty political
and economic issues again come to the
fore. German-Pole relations are grow
ing more bitter, and the question of
war debts and Young plan revision is
very much alive.
Among the troublesome economic is
sues on the League of Nations program
are tariffs and trade restrictions, re-
gional trade preferences and the gold
investigation. This last, at least so far
as existing conditions are to be exam
ined, France is anxious to block be-
cause of the feeling that she is being
untustly accused of selfish boarding.
Although Germany is expected to under
take a more militant foreign policy
it is probable the country will risk
provoking a critical situation.
In the New Year message to the
German government, President Hin
denburg singled out three detectives, all
significant of the future: Preparations,
protection of ninorities and fulfill
Rent of the disarmament promises OF
he allies. Virgins statement. which
has been warmly seconded by Sir Josiah
these expectations.
British Labor Troubles.
L0ndon-Trading is overshadowed by
the coal and cotton disputes. Individual
markets are quiet. There is better
inquiry for Manchester goods but no
increase in business. The reduction in
the price of Cleveland pig iron by SIS
ton is expected to lead to better trade
against foreign competition. The fall
in the price of hides has been arrested.
Wheat is up. All provincial centers
report a general feeling that commodi-
ties have now reached a bottom and
there is a general hopeful tone If no
further labor or political troubles inter-
fere
The Welsh coal negotiations, which
broke down last weak end, were re-
newed and broke again Monday, caus-
ing intervention by the government.
Separate interviews with miners and
between owners and the ministry lasted
3 hours, and full committees on both
sides are still negotiating through the
government. There are some hopes of
settlement before the week end.
Paris.-The trend of business con-
tinues downward. as shown in declin-
ing production indices, foreign trade,
lOdulIlRS, railway T6C6lDJS, TAX IS-
turns, security values, higher unemploy-
ment (now nearly 100000, and ref1uX
OF foreign labor. Currency imitation
has not yet been checked and the gold
reserve, banknote circulation and sight
obligations of the Bank of France all
have reached new record levels. Do
nestle prices have again turned up
ward under the influence of continued
currency expansion, while the spread
between wholesale and retail values has
widened further. Wholesale prices at
the year end stood 10 per cent above
prewar levels; retail prices were up
80 per cent. Apart from these unfavor-
able underlying trends. business proper
has been featurelesS since the epidemic
of actual or threatened bank failures
ceased early in December.
Indices Fairly Steady.
Due to the uncertainty of the fiscal
future, the new Steeg government i'm
tends to shorten the original Tardieu
equipment program and meet the costs
by Supplementing treasury surpluSeS
with federal and local bond issues.
What expenditures can be postponed
and which must be retained are still
unknown.
November industrial indices showed
less change than was expected, declin-
ing merely point to 1875 per cent of
1918 levels. Textiles, rubber and min
ing registered small gains. Leather and
automobiles are unchanged. Metalluy-