Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-16
German PIebiScite Failure
Regarded as Best News
During Past Week.
GENERAL UPSET FEARED
AS POSSIBILITY IN LONDON
Conditions in Paris Featureless
Except for Break in Amer
lean Cotton Prices.

NEW YORK, August i5,-Radio and
cable dispatches to the Business Week
give the following swift survey Of BUSH
ness abroad for the week ending
August Is:
EurOpe.-Immediat business activity
IS at the lowest levels yet reached.
Recent political uncertainties and as
ISOLATED financial and exchange strains
have accentuated the usual Summer
stagnation to point approaching en-
actual standstill. The economic imam
clal and political situations remain
highly sensttized and yet, viewed So
Deriy there are many reasons to be-
lleve immediate conditions will right
| themselves. barring new. unforeseeabIe
shocks The Winter prospect, however,
| is grave.
Germany has given magnificent ex.
nloltlon OF her 9ap4city for Self-help
and Self-control. Complete removal Of
banking restrictions and reopening Of
savings banks, attended BY no runs
whatsoever, leaves the stores of millions
IN cash modified against possible runs
now free to be restored to circulation.
Money rates are falling rapidly. Tues
days reduction Of the rediscount rate
from ID per cent to 10 per cent prob
| ably soon will be followed by another
cut, since bill rates already are lower.
| Exchange restrictions have relaxed to
such an extent that now all regular
importers are granted permits The
/ return to normally Is proceeding faster
than 1t was believed possible.
Failure Of the Prussian plebiscite,
| moreover. has cleared the political
horizon, both within and without Ger
many. This will now permit indis-
pensable international financial collab-
Grafton affecting Germany, England
and. Importantly in the immediate
future. Austria and Hungary, TO GO
| forward
1t was most unfortunate, however.
that the European-wide relief result
ing from the failure Of the plebiscite
Is now Offset again by eratuitously
concurrent adverse development. The
break OF cotton kTicezs an the DEPART
ment OF AgT1cultureS unexpectedly high
crop estimates not only has paralyEed
again the reviving textile trades, but,
| by jeopardizlng existing commitments.
has accentuated already great uneasi-
ness over the condition Of British
banks and traders. which, coupled with
the increasingly strained position Of
| the British treasury, has undermined
| confidence in sterling. The center Of
European gravity unquestionably has
shifted to London. where. it is feared.
| the collapse of any one important firm
at this juncture would precipitate
L0ndon.-BWsiness Is subdued By
the August bank holidays and the gem
eral crisis. The cotton crop estimate
caused market break in Liverpool
Monday, cotton touching the lowest. at
| 3.65d q pound, Siiice 1894. The
futures market fears individual crashes
when the Thursday settlement comes
around. The London market saw falls
on all textile stocks.
Talk of national coalition govern
ment now is rapidly gaining ground. II
the government appeals to the country
there is every likelihood of an early cleo
ton. And If held. tariff government Is
| the probable result.
PariS.-Despite important foreign de-
velopmentS, the week domestically has
been featureless except for the break in
the American resin and cotton prices
which caused some CONSERVATION to
French industry.
center of public interest. It Is considered
here that the problem of Franco German
relations remains unaffected. as France
is determined to maintain demands for
concrete political guarantees in ex-
change for any financial assistance
eventually requested by the Reich.
Berifn.--The result Of the plehiscite
| Is indicative that Germany is recon-
Yalescent from political fever. despite
economic difficulties. Naturalization Of
credit and the money market continues
to make highly encouraging progress
The number of unemployed at the end
Of July stood at 3,076, 900. an increase
over the second half of July of 10000,
against an increase of $4,000 in the same
period last year.