Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-03
BUSINESS
IN GENERAL HOLDS
TO GAINED GROUND
Sentiment Distinctly Stronger
in U. S.. but Rapid Recovery
Is Not Expected.
STERLING AND PESETA
ADVANCES ARE FELT
Imminent Possibility Of Gold
Movements From Paris to Lon
don Factor of Week.
Special Dispatch to The Star.

don Factor of Week.
Special Dispatch to The Star.
NEW YORK, May Gable dis
patches to the Business Week give the
following survey of business abroad for
the week ending May 2:
EurOpe-Business in general, despite
sensitiveneSs to present unfaVorable
developments in Wall Street. is valiant
" holding the ground gained in recent
weeks. Security markets and certain
commodities are exceptions Sentiment
is distinctly stronger than in the United
States. but leaders are harboring no
illusions that any rapid recovery Is in
prospect.
Outstanding developments during the
week we're: "a The sharp advance of
sterling and strengthening of peseta
exchange; co the imminent possibility
of gold movements from Paris to Lon
don; 90 relief over Snowden'S budget
of expediency," which neither fulfllls
widespread Tory hopes for a schedule
of import tariffs nor juStif1es general
fears Of increased direct taxation; 90
the depletion Of wheat stocks and in
creasing volume Of purchases by the
principal grain importing countries.
Price levels sagged markedly during
the week. The cumulative weakness
caused by the unloading by Americans
of foreign commitments was no more
to blame than the lack Of positive
European support of the domestic Sc
curity and commodity markets. Nom
ferrous metals were particularly hard
hit. Rubber touched, but promptly re-
acted from, an all-time low. Cotton
was weak. Silver, lead and wool, on
the other hand, were steady. Jute was
strong. Wheat prospects, with local
+ supplies vanishing in France, Germany
and Italy are good. There Is no evil
dence that business is deteriorating.
but the immediate prospect is one of
considerable irregularity without any
sharply defined trend.
Peseta Improves Position.
The improved position of peseta ex-
change is due to the success of the
first weeks Of the new republican re-
CINE and to the ability of this new
confidnce In the young government to
repatriate temporarily exiled domestic
capital. The unexpectedly able handling
of the internal political situation has
had a pronounced influence on foreign
opinion.
Germany and Italy continue to de-
velop their trade relations with the
Soviets. This week Russian trade dele
gates in Italy completed pact with
Italian government officials by which
the SovietS agree to place a minimum
Of $17,5O0, 900 in orders in 1881 for
italian goods. The volume last year
(the first year of the Italu- Soviet trade
agreement) totaled only $4,000, 900, and
went for automobiles, arplanes, ships
and machinery. To attract the busi-
ness for italian industries, the Musso-
lini government Is guaranteeing export
credits up to rs per cent over period,
in some cases, as long as So months.
In turn, Italy has contracts with Rus
STA to purchase predetermined quanti-
ties of Soviet coal and oil.
The Russian trade delegation in Ber-
lin has just announced returns for the
first quarter of 1881. Purchases OF
German materials totaled l.200, 900,
compared with $31 100000 during the
first quarter of 1880, and compared
with $1S,962 900 in orders placed by
the Soviets in the United States during
the first quarter OF 1881. Certain in
dustries hold large share Of the new
blsiness-metals, $l2 400, 900: machin-
cry, $4,000, 900; machine tools, IS, 100,-
600, and electrical equipment, $780,
900. In connection with these orders,
German business men have run into a
blank wall in their request to the In
ternational Bank at Basel to rediscount
the German government guaranteed
Soviet bills. Popular opinion blames
the French and British, who are
thought to be jealous of the large bulk
of Soviet business which Is coming TO
Germany.
Mistrust Snowden's "Expedients."
LOndOn.-The pre-budget lull ended
Tuesday with general satisfaction that
there is no increase In taxation except
on gasoline. Long-term business, how
ever, is not normal, has fears OF meet
ing three-quarters Of the budget pay
mentS on January l, anticipates new
and larger deficit next year because 1t
mistruts Snowden's "eXpedients."
The prospect of a gold influx from
Paris has caused exchanges to improve
slightly, but reaction to Wall Street
continues to be a depressing factor.
Rubber dropped to a new low on pub
lication of Dunlop's unfavorable report.
Speculation over the outlook has not
failed to concede that artificial restric-
ton Is q dead issue, and probably wise
ly so.
Non-ferrous metals experienced heavy
selling. Copper and tin were hit by
the failure of Pynchon 81 Co. Zinc
touched new low.
Unparalleled in the industry history
Of any country" Is the bold project for
the identification of all British rail-
roads, on which Lord Weirs committee
recently reported favorably. The cost
of conversion of the total 81 900 miles
of lines, it Is estimated, would be about
two billions. and would give employ
ment to $4,000 men for 20 years. An
nual savings to the four big railway
companies are estimated at 621a mil
lions. Long-headed observers expect
eventual uniflcation Of all systems and
electrical operation, but admit that
present financial and political obstacles
may hold up the progress.
Unemployment Declines.
BerIin.-The upward movement OF
the last few weeks is at a standStul.
Stock markets are reacting strongly to
wall Street, commodities to general
European irregularity. Unemployment
for the first half of April declined 120,-
600. but this was due to nothing more
than a seasonal pickup. Greatest dis
appointment is the failure Of the build
ing trades to register even an appre-
ciable Spring revival.
Business interest just now Is centered
in the resumption of work on the cabi-
net agenda, which includes the all-im-
portarIt agricultural tariff measures and
reform Of the overtaxed unemployment
relief fund.
In the case Of agricultural tariffs.
two problems are foremost Dairy
farmers, depressed along with the rest
of the agricultural world, are making
fresh demand for 100 per cent in
crease in butter duties. Industry In in
censed. believes i has ah9adg suffered