Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-25
boarding of Money Has De-
creased on Continent and
Exchanges Improve.
ATTENTION Is CENTERED
ON LAVAL s VISIT HERE
Conferences Between President
Hoover and French Premier Nav
Solve Financial Problems.
Special Dispatch to The Star.

special Dispatch to The Star.
NEW YORK, October 24.-Cable and
radio dispatches to the Business Week
give the following survey of business
abroad for the week ending October "a.
Europe.-The business trend is better.
Immediate conditions are only very
slightly changed. but sentiment and
prospects-though the latter must still
be hedged with reservations-have
frightened progressively throughout the
week.
The boarding movement on the con-
tinent has slackened and actual re-
versal Is probable if the present i'm
proved trends continue. Return to the
previous abnormally low bank rates is
unlikely. 1t is the consensus that the
former cheap money policy resulted In
greater loss OF bank interests than could
possibly be gained by industry under
present conditions.
Security Demands.
Exchanges are steadier. Dollar short
sales have appreciably Stacked. Scandi-
navia clipped ! per cent from the re-
cent vertically raised protective bank
rates. which is an indication Of stronger
inherent conditions. II, as expected.
the Reichsbank now weathers the i'm
mediate exchange crisis, the greatest
remaining financial weakness is Austro-
Hungary, where French assistance Is
under negotiation.
Attention is riveted on the Laval
visit to Washington. Previous miscon-
ceptions that the visit was tantamount
to conference, at which decisions
would be made, Is giving way to the
realization that the meeting is essential
ly intended as preparatory to subsequent
Franco American negotiations under
the direction Of their respective heads
OF state, who, after this personal ex-
change of views, will be more able to
reconcile such dissonances as viii oc-
cur between their respective parliaments.
European opinion Is inclined to think
the crux of the discussions will be
reparations, war debts, disarmament
and gold policy. The complex rests in
the French demands for security guar
anteeS. If a formula, both satisfying
to France and internationally accept
able, can be evolved, agreements
liquidating most, If not all other prob
LENS, are believed to be Q practical pos
sibility.
Germany.-Chancello Bruening,s an
nouncement Of q determined program
to maintain economic equilibrium, and
his survival in the political assault in
the Reichstag, have united the Nation
alistS, and, for the moment, have lifted
the most serious threat overhanging
European peace.
The Reichstag has readjourned till
February %. This respite Bruening will
use to push () work on the Franco
German trade cooperative agreement
CD work on the governments new
Economic Advisory Board. Hitlerism is
spreading. Though the trade SURPRISES
are steadily strengthening the ultimate
exchange position, it is realized that
the necessity for long export credits IS
among the causes for the slow reflux
to Germany of urgently-needed export
proceeds. Reichsbank's final resort of
cutting of from rediScount privilege all
exporters. who are guilty of not repatri-
ating their export proceeds Is expected
to show immediate material effects.
NEUTRALITY-SUSPICIOUS. has begun TO
succeed the nervousness of recent weeks.
Failure of the German Nationalist to
gain political control was a source Of
great relief and qualification. Similarly,
the reported Federal Reserve Bank or
France agreement, whereby the Bank
of France maintains its balances In the
United States against earmarking
equivalent gold, have both dissipated
and increased exchange confidence, the
forward discount of dollars falling
sharply.
Budget Deficit.
Laval, prior to sailing for the United
States, succeeded in replacing appre-
tensions that he would permit himself
to be ambushed in Washington.
Meanwhile, the greatest cause for
domestic concern-the budget deficit
has been allayed by the announcement
that $240,000,000 in new economies
without increased taxation are probable.
and that the current fiscal year would
terminate December J, instead of April
81, thus permitting both earlier effec-
tiveness of budget reforms and avoid
ance of their becoming issues In the
1882 elections.
Great NEUTRALITY-SUSPICIOUS. Oc-
tober 27-are impeding and overShadow-
ing business, though devaluated sterling
is still benefit to exporters.
It is generally expected that the
Nationalist government will be returned,
and that there VIII be tariffs next year.
Stock markets are cheerful The de-
mand is good for short term loans and
the general tone Is nopRful.
Northern interest centers in the Sino-
Japanese affair with the feeling wide
spread that there will be some further
diversion of China's cotton goods orders
to Lancashire.
The attendance of Gov. Norman at
the B. I. S. meeting in Basic has quieted
British rumors as to his pending retire.
ment. 1t Is still felt that he will not
go forward to denomination in Novem-
Der, but even this. in view of his rapid
improvement in health, is now more
doubtful.