Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-08
Increase in Volume of ActiV-
ity Noted at Chief Trade
CenterS.
PRICE OF COMMODITIES
SHOWS STEADY UPTREND
Bankers Are Doubtful if Seasonal
Advance Will Be
Continued.

Special Dispatch to The Star.
NEW YORK, March Gable dis
patches TO the Business Week give the
| following survey of business abroad for
the week ending March z:
Europe. - Relatively speaking, the
weeks business news has been favorable
almost without exception. The net VOL
ume Of activity is increasing, prices are
| firm at higher levels and the immediate
horizon Is clear. Leading European
economists and bankers, however, ex-
press Numerically opposed views con-
corning the significance of this incip-
tent Improvement. 1t Is merely seasonal,
according to the pesSimists; it is both
seasonal and cyclical, say the optimists.
Basic commodities have held or in
creased recent gains and have now
joined in the sharp price advance.
Stock markets have frightened all
| over Europe. Bonds have advanced and
the Improvement of financial sentiment,
1t Is hoped. is forecast of early re-
sumption of activity which was inter-
rupted by January's unfaYorable politi-
cal outlook.
Political Factors.
Apart from these barometric market
| trends, the week has been distinguished
by series of suspicious events, includ-
ing the contamination of the Franco
Italian naval accord, agreement in the
negotiations between Gandhi and the
Brltlsn Indian government, foundation
In switzerland of an important mort
gage pank with wide international par
tic1pation, enactment of the tin restric-
ton scheme, renewed Anglo-Dutch col
Iaoorat1on for rubber regulation.
Against these internationally favor
able trends stands local dif1culties
Ihere can be no hope for imminent re-
v1val in France, where deflation is onIv
beginning. England, although among
the first to respond to seasonal improve
ment, faces the problem of correcting a
profound economic lack of equilibrium
Conoltlons IN Germany have steadied
perceptibly since the beginning of the
year, but the country still is octracized
by the worlds capital and severely ham
dlcaped in melting It's own revival nv
disproportionately high money costs
Italy is more or less In a state of s11s-
pension. with little danger of further
material recession, but with equally
small prospect Of any appreciate i'm
proVement: spain reports that an agree
ment mas been reached with the Inter-
national Bank for the sterilization of
the peseta, but this is not yet officialIv
announced from Basic. All Eastern
| european countries are suffering a9ricuI-
turally and from capital stringency. but
| judging from the many individual loans
under negotiation and the erection of
financial machinery designed especially
70 act as capital conduits to this area.
considerable development of unrealized
resources Is In prospect in the next few
| years.
LondOn.-The better tone of all mar
| ketS Is due to the growing conviction
that the slump has ended, to the wall
street rally and to the success of the
British Industries Fair. Orders still lag
behind inquiries. but cotton is selling
| more printing and dyeing fabrics to
| south America and rayon is increasing
sales, both Of acetate and viscose warns
and fabrics. The Spring demand for
iron and steel, however, is subnornal
WIN pig iron suffering because of COM
petition from the imported Indian
| product. Welsh coal is in poor de-
mand, with darkening prospects, due to
i agitation caused by the French miners
demand for limitation of imports to
France. Shipping contraction on home
ward freightS has followed the fall in
demand for grain cargoes. Commodity
recovery continues, with some trregu-
lar1ty in base metals.
The industries fair showed an in
crease in overseas buyers of Is per cent
| over last year, the cotton section book
ing orders valued at $4,000 ,000 and the
machinery section orders worth IOO.-
OO0,OO0. Lancashire unemployment is
the lowest since December, with a de-
| crease for the week of 1000.
The visit Of the Dutch rubber COM
| m1ttee to London to discuss restriction
with the Rubber Growers Association
was reflected in the rise by a half
penny in the price of the commodity
and IN the upward turn of shares. There
Is a general feeling in the rubber mar
| ket against any new restriction pro-
| posals, because the schemes are un-
| economic owing to the cost of super
vision and inspection, and their doubt
full efficiency because of the native habit
OF storing rubber, only to unload It
the moment prices rise.
Paris - Business conditions reflect
none Of the 1ncipiert seasonal improve
ment reported In other countries.
| Statistical indicators register further
declines. Reports of industrial diff
f1culties multiply The number of
municipa lly-subsidized unemployed adj
| vanced 10 per cent during the week.
The Chamber has voted 1000, 600 con-
| tribution to municipal relief funds, not
withStanding the Governments plea of
an already over-taxed treasury. The
metal workers union has urged uni
| versal adoption Of the flve-day week
in order to stretch the available work.
Restriction of trade relations with
Russia are again agitated. France was
among the heaviest losers from the
Communist confiScations, and repudia-
| ton of foreign bonds. Though po-
litically recognizing the Soviets, France,
with Switzerland, has been the least
disposed to resume intimate relations,
and France today is the outstanding ex-
ception among the European countries
in making no efforts to participate in
Russian trade opportunities. Other
countries are tending to the opposite
extreme, In some instances assuming
cerdit risks which-as happened in the
United States during the postwar ex-
port boom-they are not prepared to
L s..n,.k H. in..ancAln