Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-26
CRASH Of ALFONSO
LEAVES EUROPEAN
BUSINESS NERVOUS
Most Commodity Markets,
However, Improve Dur
ing Past Week.
ENGLAND'S NEW BUDGET
DISTURBING TO LONDON
Paris Continues Inactive, but I'm
dertone in Berlin Is More
Confident.
Special Dispatch to The Star.

Confident.
Special Dispatch to The Star.
NEW YORK, April 25.-Cable dis
patches to the Business Week give the
following survey of business abroad Tor
the week ending April IS:
Europe.-The current feeling of bust
ness nervousness was precipitated by
the unexpected overthrow of the Span
ish government. During the week COM
modify markets-with the exception OF
wool and jute, which showed signs OF
- appreciably weakened
Wheat was firm on increasing evidence
that European wheat reserves are ap-
preaching exhaustion, notably in Ger
many and France. The scarcity of sup
plies already has caused France to raise
within the week from 10 per cent to 20
per cent the quantity of foreign wheat
permitted for use by mflers. Trade
prospects are better than year ago
unless wheat reserves about to be re-
leased by the Farm Board upset the
market.
Steel prices are lower; iron fell be-
low the lowest levels since 1915. Nom
ferrous metals receded despite the ia
vorable conclusions reached by men,
bers of both the tin and lead cartels.
DiSsidence among Dutch rubber pro-
ducers and the East Indian government
has discouraged buyers. Pessimistic re-
ports sitting through from the United
States have impaired the recent i'm
provement noted in European stock
markets, since the feeling still exists
that the United States must lead the
world out Of the present economic de-
preston.
Apprehension Over Spain.
The new Spanish government rapidly
is organizing, but apprehension is felt
over its stability. The army is po-
litically minded, but heretofore, only the
officers have entered into the intrigues
which accompanied changes of govern
ment. Now the soldiers are realizing
that Chey are a part of a republican
government and are in a position to eX-
ert political influence. Trade unionist5
are not cooperating Fundamentally
with the new government. Communistic
opinion among the AndaluSian laborers
and V1scaya miners is a source Of APP
prehension, especially in France, which
is notably anti-Soviet.
The new government has signified its
intention to abandon the unused Morgan
credit Of so millions. Otherwise it is
expected to recognize all national debts.
Financiers are treasured because they
realize that the young republic hardly
dares to do anything TO antagonize
money markets in New York and in
Europe.
Foreign trade declines in March are
viewed with concern:
Eass;.: T.. y y 'i II: IL" f.. IL
LONDON.-This has been a week of
depression. Anxiety concerning the
budget ito be introduced April 2O is
the most disturbing factor. The upset
in Spain and consequent reaction, the
very unfavorable trade returns for
earnings and the French antagoniSm to
the Austro-German affair were con-
tributing factors.
Coal Areas Improve.
Hopeful signs include a slight i'm
proveuent in the Welsh and Yorkshire
coal areas, some seasonal expansion in
iron and steel, and the steady position
Of wool Cotton Is quiet Rayon ex-
ports are sagging but home demand is
good. Rubber, on the other hand, has
dropped to a neW low, non-ferrous met
ais are cratic, commodities in general
are depressed.
The Spanish situation Is not causing
undue alarm. So far as London is con-
cerned, its financial effects have been
confined to sharp depression in Spanish
exchange and weakness in securities of
British companies working in Spain, the
most important being the Rio Tinto
Copper Co.
PARIS.-Another week has passed
with no material change in the business
outlook. Trade and industry both are
inactive. The suspension last week of
the depression acceleration has carried
over. but there is still no real sign OF
Improvement Unemployment returns
show no material increase. Weekly
railway receipts are running per cent
10 10 per cent and carloadings 3 per
cent to 4 per cent below 1880.
Money is plentiful, but people hest
tate to put it in new ventures. March
security issues we're very much below
February issues.
The defiation cycle is developing,
with particular reference to wages.
Following recent reductions in the coal
mines. the textile manufacturers OF
Northern France have cut wages among
the million or more workers. Labor
is discontented but considers reduced
wages preferable to unemployment, to-
tai or partial.
Food Prices Advancing.
A peculiar condition has developed
in France. While wage reductions are
spreading rapidly, and are being &C
copied with comparative calm, the
price Of food is still going up. Whereas
foodstuffs in Germany have registered
a fall in price since the boom period
Of 1929, Of 20 per cent. in France they
increased 10 per cent between 1927
and 1929 and another 10 per cent in
1880. And wage reductions. which. in
other countries, followed price reduc-
tions, are, on the contrary, being gen.
eraliZed in France despite price in
flation. Domestic wheat prices are at
present about three times higher than
shows how unbalanced national econo-
my Is. The business outlook in France
thus is decidedly not h5peful.
These wage cuts and resulting cur
tailed buying power will not improve
business at home. but they should
better Frances competitive position In
export markets. Though still well be-
low March, 1880, March foreign trade
due to seasonal activity, already shows
signs Of revival. Imports for the firsi
| quarter we're off only 16 per cent, but
! exports dropped To II per cent OF tht
volume last year. It is interesting
! that rawstuff imports were down q
per cent, manufactured exports 81 pei
! cent.
BERLIN.-Despite Of the stock market
setback. the business undertone is con.
fident and Is supported by marked i'm.
provement in textiles by the Marcel
gain Of 100000 in manufactured ex'
ports, by the record export surpiu
Of 100000.
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