Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-01
POLITICAL FACTORS /
CONTINUE TOSWAY
!. OVERSEE BUSINESS
European Situation Remains
Clouded, Pending Action on
Preparations Issue.
BRITAIN Is BENEFITED
BY NATIONALIST VICTORY
German Exchange Crisis Alleviat-
ed-Results of Laval's Visit
to U. s. Awaited.

NEW YORK, October ai.-Cable and
radio dispatches to the Business week
give the following survey of business
abroad for the week ending October 81:
Europe.-The sweeping victory Of the
National government in Great Britain,
and the continued expansion of indus
trial activity which already has resulted
In an unemployment decrease OF So 900:
some relaxation Of the German ex-
change crisis and of strained position Of
the Reichsbank; the initial disappoint-
ment over the intangibility of the Hoo
ver-Laval communique, but the later
belief that the announcement cloaks a
more definite understanding regarding
future procedure which will be designed
to lead TO q scaled0wn OF reparakions
ana war debtS-these reactions have
been features Of the business week II,
Europe.
Factors I'm Situation.
Chief among the questions raised bv
these various developments:
l. What policies will Britain's Ma
tional government adopt under its
plank-check mandate tariffs are taken
Tor granted, but their extent or kind are
entlrely UNKNOWN?
2: What recommendation will Laval
make on his return to France?
8. VIII Germany now invoke the
sions permitting 2-year suspension OF
the transfer of postponable Preparations
sput requiring continued payments Of
Total reparations in retchmarks)?
4. VIII Laval then convole q confer
ence OF reparation creditors to consider
Germanys capacity to pay?
2. WIN the United States re-examine
war debts II reparations are reduced
without first demanding that sor,,e fIia-
armament agreement be reached2
Although foreign condolences win be
strengthened by the British elections.
ana though the recent slight improve
meng IN German economic affairs IL
welcomed, general conditions have not
improved, and they remain subject 10
numerous uncertainties.
Uneasiness over conditions in the
unlLed states again Is reslIrgent despite
American collaboration to support fl,e
gold standard
Both commodity and stock market
movements, though not rejecting allv
particular weakness, have been uneasy
and irregular.
Eastern Europe continues "a Be thu
scene OF many difficulties. Last wee< saw
tne failure of Marmorosch. Blank IL
90, Humania's largest private banking
l s AZ was shock even to the mart
present difficulties, because n was f,,iiv
expected that this long respected insti-
support. oala@a
Paris.-Both the outcome Of the La
VA VISIT 70 Washington and the British
eiections have occasioned MIXED feel
t f,q, though the net results are graft
French satisfaction from the Laval
gether-empty accomplishment ~ 49,
ing surrendered nothing Not . few
Tears are relieved that France,s afrsa.
uom OF action" was in no Wav cor,s,r,,.
missed ny the dangerous" conversafions
with the American President. INF AVE.
All there is a disappointing reaiizafio,
tnat these very limitations which
neoged the Hooyer-Laval Conversations
aliOweo neither country to gain any
Better Understanding Reached.
The outcome, nevertheless. has
strengthened both Lavals political u0si-
Ion and the prospect for further direct
franco German negotiations THE
french are now confident that Ere
oauseu STATES VIII neither bring PRES
sure 70 Dear on them IN the cause Of
atiye similar to the Hoover bonbshelI
last June. 1SAs
similarly, German demands for rena-
ratlons revision, under provisions In the
1oung plan (Which are expected IN the
noL distant future), will probably ~
peter received In France. Frencil in
.ranslgence all along is said Ia hava
peen que 70 a feeling that there have
.eta zoo many attempts at outside die
.aeion. Ibis now Is mitigated. Also.
the reailzation gradually Is growing thai
reparationS and war cebss are anlOr,r fhe
causes OF world depression and that their
moolncation-the very Suggestion IVES
anathema TO France only six r1nnnthe
ago-is among the prerequisites to any
London.-The crushing defeat AZ -.
Dor has heartened business which now
expects five years Of strong, stable. eco
early In 1882.
The continuing drop In unemnIov-
ment at this season is due mainly ~
suddenly increased activity in the cotton
ana wool trades. With Confidence en-
gendered In the elections. 4 further
crop IS expected next week. It Is now
Soilnuently expected that the six-m0nth
Doom VIII release long frozen capital fs-
sues, thus reyivifying investment mar
kets.
protection prospects are attracting
foreign manufacturers There were 400
site inquiries from Sweden alone. with
many possibilities Of mergers with ex-
isting English companies heretofore
competing with foreign producers.
Exchange Farley watched.
Great interest Is being shown in the
international conference for foreirn
exchage which has been proposed bv
the International Chamber on Com
merce. Forward exchange operations
are now hindering Britons who are tln-
used to these transactions, but who are
unable TO adhere to sterling quotations.
Beriin.-The outcome at WASHINGTON
OF the Laval-Hooyer conversations was
matter Of acute disappointment 10
Germany. Prevailing feeling here Is
that Germany now Is left to the mercy
of France
Despite the gloomy political outlook,
the undertone Of business sentiment Is
slightly more confident It q supuorfed
by the recovery Of German eold bonds
on foreign bourSes, by the favorable
status of the Reichsbank with only afl-
GOO 200 as the weeks foreign exchaf1ne
loss, by the quarterly report Of Faf-
bfnindustrte. which stall shows REMARK
able power and resistance mainly due Is
well-mainkained exports DYE nxnnftr
Wa - IN M stn5 ens<& - s>&~ 4f..<n...