Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-22
Recent Favorable Trend in
Several Lines Is Being
Maintained.
TEXTILES SETTING PACE
FOR INDUSTRIAL GAINS
Germany and Eastern Nations Are
Showing Signs Of Spring
Revival.
Special Dispatch to The star.

Special Dispatch to The Star
NEW YORK, March 21.-Cable dis
patches to the Business Week give the
following survey of business abroad for
the week ending March 81:
There were few high spots in the
weeks developments, but the favorable
trend distinctly has been maintained.
An Enthusiastically better tone is gaining
throughout Europe. Even Germany
and the Eastern States are beginning
TO contribute signs of improvement.
On the other hand, after six weeks Of
sustained advance, 1t Is reasonable to
expect that any period OF conSolida-
ton will be attended by irregularities,
as was manifested in the slight recess
sion IN non-ferrouS metals during last
week. Tin alone turned strong in mid
week. Copper demand is largely I'M
filed and readiness to cover is evident.
but buyers are holding out for 10-cent
metal.
Textile Demand Strong.
Textiles continue their leadership in
the industrial advance. Manchester
and Lancashire actually are beginning
to speak Of a boom as buying con-
tinueS to broaden. India particularly
is coming strongly into the market.
European demand has buoyed cotton
prices, which declined in the United
States. Wool Is very active. Several
countries report leather manufacturing
on the increase. Iron and steel, until
now tagging while consumer industries
registered their first gains, are Begin
ming to stir. Contrary TO expectations,
the improvement is especially noticeable
in England. 1t is significant, in ap-
praising prospects, to note that the
Continental steel cartel has continued
production quotas unchanged for the
second quarter. despite the fact quotas
were not realized in the last three
quarters.
Gradual relaxation Of German cap
ital stringency and continued strength
of the Reichsmark were features on the
money exchange markets during the
week. Sterling reached a new high
against francs. South African gold is
again being taken up by the Bank Of
England. Belgium was the only Con-
tinental buyer during the week.
February foreign trade duplicated the
disappointing January volumes. Even
March figures may show little change.
Current reports Of stronger world n
quiry and, in some cases, actual sales
indicate that April viii show tangible
expansion. The stronger position Of
silver is important in this connection.
Crux Of the European financial situ-
alton, now focusing on capital red1Strt-
button, is largely the attitude Of the
French investor. It Is he who controls
Europe's largest accumulation Of idle
funds. But today he Is doubter. He
mistruSts foreign investments. He Is
depressed by the downward trend Of
French business. He is inclined TO
hoard rather than to invest. The final
underwriting OF the Rl1nanian loan, OF
which a French consortium took the
lions share, will be q test. It may
mark the beginning Of the dispersion
Of French capital congestion; 1t may
only show the investor will not support
the bond issues advocated by French
bankers.
Tariff Conference.
There is also a serious question Of
whether England will be able to con-
tribute capital as extensively as for
merly. The disintegration of Britain's
economic position has seriously re-
duced, If not actually vitiated, the Gus
tomary favorable balance of payments.
Meanwhile. financial activities in Eu-
rope are characterized by exceptionally
wide decentralization.
The Third Tariff Truce Conference
has proved to be another stalemate and
will probably vote an indefinite adj
journment No wholesale denounce-
ment of tariff treaties after April ! Is
likely, even If the whole Geneva tariff
tie-up collapse. It Is not without sig
nificance that the motion Of adjourn
ment was made by Great Britain. With
each week Britain appears to be NOV
ing nearer the abandonment OF the ira
ditionaI policy Of free trade and the
adoption of tariffs, whether the Labor
government stands or falls. The issue
Is becoming less and less "a tariff" and
more and more what tariffs, and for
what purpose" So far there is a COM
bination OF purpoSeS-tariffS to debate
real wages. which are incompreSsible by
direct methods; tariffs for revenue;
tariffs as an instrument for empire
preferences in a closed economic con-
solidation; tariffs for outright protec-
tioniSY1