Evening star., 1931-12-06
British Tariffs Revive Prob
lem OF Trade Barriers
in Europe.
FRENCH ARE DISTURBED
BY LUXURY IMPORT BAN
German Trade in Confused stats
PENDING Settlement of Political
and Economic Troubles.
Special Dispatch to The Star

| Special Dispatch to The Star
NEW YORK, December Cable
and radio dispatches to The Business
week give the following survey Of
business abroad for the week ending
today:
The Manchurian Situation. Prob-
ability that the lull in hostiIities will
be used constructively to patch a Man.
churlan peace has eased the outlook
IN the Far East. Japans immediate
foreign trade outlook is not PROMISING
puS Iha volume of internal business has
! improved. What the boycott did at
eno peak OF Its popularity in China is
! Shipments to China of c3tton teTtiIes
totaled only 100000 square wards in
| contrast to 100000 in the sams
month last year.
olgnS OF Improvement have appeared
IN south China, and in the Shanghai
! region imports and manufacturing are
Ialf. Elsewhere the depression has NOT
eased and crops are generally below
average. Cotton production shows a
| decrease of 20 per cent.
Beriin.-The rise of 100000 in the
ptOJe Gu 4oI CHe IrSt half of No.
gemoer, bringing the total near the
iiEStTI9nu4Ion nEtIita mark, indicates the prob
ability Of a further recession. Ths
complete uncertainty, politically and
oCnerWlse, Of the next months is
paralyzing trade.
Taxes Discourage Business.
Business also is discouraged over the
ploepecC OF new burdens coming from
tne fresh emergency DEGREES, Including
uouole sales tax, the per cent re-
aucIlon In Official salaries, and a 10
per cent, or possibly IL per cent cor~
| pom tax on fixed interest bearing Sc
| curities. The latter project is severely
crltlclzed, since it is expected to in
crease the cost of capital to borrowers.
/ Inc unof1clal bond market has re-
! acted downward with the new world
! decline. "oA4N
Pars. - Momentarily England, not
Germany, Is engaging French atten-
! tion on three counts: Tariffs falling
sterilng and international debts.
line new British tariffs have brought
tne eatlre problem of tariff barriers to
Ltie Lore m Europe. France, already
Su1eflng from a growing unfavorable
balance of trade, is particularly per-
turo2d. Hard times and deprecated
currency In many countries have forced
Gnefn 10 ban various imports. Usually
luxury products are first to be hit.
IheSe products make up an important
snare OF all French exports.
Gaihc uneaslneSs is accentuated by
tne apparent unconcern of British au-
thorlties over the depreciation of ster-
ing: Fhe French do not share the
BRUSH conviction that the recent spec
tacular slide is only momentarv and
due to transient factors, Nor do thew
believe it will be followed by an equal
II not greater, reaction as tariffs cor
rect the balance of payments.
Inc local situation continues to be
one OF gradually decreasing activity.
Octooer iron production was off 3 per
cent, steel per cent. Coal, protected
by the new low import quotas, showed
a gain. Registered unemployment. in
france only an index of the total num-
per OF Jobless, is increasing at the rate
OF 10000 a week.
London.-Brttain's buoyant optimism
OF weeks ago is petering out. The
zone week ago was still good. at
present the public is depressed.
Decline In Sterling.
Several factors are to blame. First
Is the decline of sterling. For a dav
1t hung more than 80 per cent below
the old gold parity. Bankers were try
ing hard to be nonchalant about it.
declared they plan to let the pound
seek its own level without artificial sup
port. Importers were openly panicky.
The factor Immediately affecting the
largest number of domestic business
men is the way in which the public.
high and low, has sealed its purse to
all but absolute necessities since re-
ceiving the governments preliminary
notices Of the new income tax, due in
January. =
There are other worries. London is
full of rumors that the solvency of
several large financial houses depends
on the solution of the German COM
mercial debt problem. Strike threats
are once more in the foreground In
Lancashire.
London blames the weakness Of ster-
ling to the pressure Of seasonal cotton
and grain imports; to deliberate pres
sure on the pound by France in order
to gain for Paris an advantage at COM
ing conferences, and to fears on the
Continent that there will be unwise
expansion of the fiduciary issue.