Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-27
FOREIGN BUSINESS
SEES TRADE LOSS
IN CREDIT CHANGE
Financial Incidents of Week
RevoIve Around Britain's
Decision on Gold.
WORLD MONEY FARLEY
DUE IN NEAR FUTURE
Workabfiity of Gold Standard IN
der Present Conditions to Be
Debated.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, September 26.-Cable
and radio dispatches to the Business
Week give the following survey Of bust
ness abroad for the week ended Sep
tember IS:
Events Of international significance
such as Laval's probable visit to Wash
ington, final contamination Of the Ger
man "stand-still" agreement and insti-
tuition Of semt-state banking control IN
Germany have been completely sub
merged under the impact Of England's
abandonment Of the gold standard. In
the main, the most significant conse-
quences and reactions in Europe are
summarized below.
European comment universally
comedies It was the best, probably the
only, thing to do under given circum-
stances. In England the new situation
has been received with absolute calm,
even with optimism. Continental Eu-
rope. especially France. foresees q loss
Of trade, but feels Englands former
dangerously artificial situation has now
been reduced to realities, thus relieving
the strain of uncertainty which has af-
fected all business.
with one exception, all European
stock markets closed Monday, fearing
the first shock of announcement Of
England's action would turn the wave
Of liquidation, which had gripped every
European market during the previous
week, into a panic. Paris was the SOL
itary exchange to open and bore the
brunt of covering sales from all Europe,
but remained relatively calm notwith-
standing 10 per cent to IS per cent
price declines. With the reopening Of
several exchanges Tuesday, a distinctly
better tone set In. London reopened
very strong In the middle of the week.
3-Sterling at first broke 20 per cent
on leading exchanges and subsequently
reacted to 10 per cent to IS per cent
losses, where It seems momentarily to
be stabilizing.
Advance In Commodities.
ticular significance, since no basis has
yet been established on which to deter
mine sterling's free relation to other
agencies.
THE majority Of London connmod-
ity markets generally advanced proper
tionately to the exchange depreciation,
some even more. Silver especially adj
vaneed ON heavy In6-a and China buy
ing. The midweek tc1e was strong.
England has decided to MAIN
tain the Indian rupee on sterling parity.
standard, Denmark Immediately fol-
lowed suit, and prohibited gold exports.
Conversely, Greece announced q shift
of its currency from q sterling to q
dollar basis. .t~
6-The report that Austria and
Hungary would now declare q mora
forum Is officially denied In Vienna
The Italian Ira fell sharply on rumors
that devalorization was pending, but
ftn Il
antees and no alteration In stabiliza-
ton rate.
The following developments, though
eclipsed by Britainis move, should
nevertheless be noted:
Early convocation of q world none
tary conference Is expected. At this
conference will be discussed the work
ability Of the gold standard under ex-
isting conditions, the related effect of
war debts and settlements without Ger
tain economic counterparts, the pos
sibility OF reconciliation Of silver.
Agricultural Bank.
The League of Nations has decided
that Austria's economic position is
worthy Of further credit, provided the
national budget is restricted to $270,-
100000.
Switzerland has approved the estab-
lishment of an international agricul-
tural bank in its territory with ex-
tension Of facilities and exemptions
similar to those accorded the Bank
for International Settlements.
Sweden has advanced the bank rate
from / per cent to per cent. Al
though Sweden until now has been
largely proof, and is still
thoroughly sound, the freezing of many
Swedish foreign assets has precipitated
a situation paralleling England's.