Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-01
FOREIGN BUSINESS
SENTIMENT BETTER,
BUT TRADE IS SLOW
Investment Markets Have
Improved Tone During
Weeks Narrow Trading.
NEED FOR NEW CAPITAL
SUPPLIES is APPARENT
Public Withholding Purchases in
Hope of Reductions in Re-
tail Prices.
Special Dispatch to The star.

patches to the Business Week give the
following survey of business abroad for
the week ending January 81:
Europe.-Sentiment is momentarily
better, but business is unimproved The
ephemeral wave of cheerfulness which
passed over Europe during the early
part of the week, with resulting stronger
stock markets practically everywhere,
was succeeded by midweek recurrent
weakness or stagnation. The interna-
tional political atmosphere is less tense.
Sitter money rates in England give the
first real promise of bringing the gold
hemorrhage under control. Sterling is
stronger, and exchanges are generally
steadier. Investment markets and new
issue preparations show somewhat
greater vigor. Reports of incipient re-
vival in the United States lend general
encouragement.
The improvement in sentiment. how
ever, finds little immediate justification
in actual day-to-day business, which is
barren Of any appreciable gains. In
fact, more progress was made during
December than in the first four weeks
Of January, though the new year was
expected to mark the beginning Of
greater activity Buying continues to
be closely restricted. and seasonal in
1uences are not yet apparent.
Commodity Markets.
Commodity markets again are in
clined to sag. Cotton and wheat alone
showed fractional gains on the week.
All other staples were lower, especially
non-ferrous metals. London wool sales
registered losses Of as much as 20 per
cent. The immediate outlook conse-
uuently is less, rather than more, favor
able unless new capital can be pumped
into circulation in greater volume or
the lethargy which is still binding pub
lie consumption relaxes. Public dispo-
sition. however, appears to withhold all
but essential purchases in anticipation
that retail prices will still be Debated
The German diplomatic victory over
Poland in the minoritieS issue not only
nitigated public feeling, which has been
running dangerously high in Germany,
but gratified business by strengthening
the difficult position of the Bruening
government and increasing the chances
for the continuation of its able admin
istration. Recovery on the Berlin
Bourse followed Immediately upon the
announcement.
The London market, on the other
hand, welcomes the minor defeat of
the Labor government in the House OF
Commons as increasing the possibility
under prevailing political conditions of
an early return of the Conservatives to
power, which is expected to mean a re-
duction in the present scale of social
expenditures and adoption of at least
partially protectionistic policies.
LOndOn.-The continued Stoppage In
the textile industry seriously overshad-
ows business. Weavers have voted by
a large majority against the renewal
of negotiations. Efforts are now being
made to organize a new ballot on the
plea that the first ballot was misunder-
stood by ignorant voters. The govern
ment is ready to intervene, but it has
announced no policy.
Political Situation.
Business also is unsettled by the ap-
parently precarious position of the gov
eminent, which was defeated on the
education bill amendment, moved by
its own supporter, and faces vote OF
censure on unemployment next week
which may precipitate an election. At
an enthusiastic non-party meeting held
Tuesday in London the city launched
a strong national economy campaign
led by powerful flnanciers and indus
trialists which disturbed the prospect
for increased taxation in the next bud
get. These factors initiate against
improving forward business.
Individual markets show no marked
Improvement, but the end of the Welsh
coal stoppages has resulted in better
immediate trade in coal, though for
ward business is still stagnant. Iron
and steel are fiat, with some trade on
reduction of pig iron prices, but steel
.oI@1 &aa 10, a,TI
to encourage orders. Wool prices and
London sales show a fall in value of
20 per cent with little buying. Metals
are erratic, with lead spelter touching
successive new lows and galvanized
sheets reduced by SIS to SIS +. o. b. for
24-gauge corrugated sheets for all over
seas markets, this being the third re-
duction since September. The stock
markets reflect a better tone, chiefly
on expectation of the early defeat at
the polls Of the Labor government.
Despite industrial disputes, political
uncertainty, and monetary fears, Bri-
tain generally maintains the feeling
that the turn of the tide has now been
reached.
Paris.-General business is devoid of
any striking developments. Indicators
are again lower. Car loadingS for the
first two weeks in January were the
lowest In the last six months and 3 per
cent under the 1880 average. Rail
receipts were down 9 per cent in
the same period. Government-sub-
sidized unemployment totaled 22,400 in
mid-January, showing the jobless to
have doubled since December. Author
tiles say the subsidized unemployed rep
resent only a fraction of the total The
emigration of foreign labor now regu-
larly exceeds immigration.
Tax Returns Lower.
The December total of tax returns
was 81 100000 below estimates and ST.
$780, 900 below 1880. The sales tax con-
dered a barometer of business was IA
per cent below 1880. Price levels are I'M
changed and money continues slack.
Berlin.-That business sentiment is
slightly more confident is reflected in
the improved tone on the stock market
which recovered q part of the heavy
losses of the previous week. The stock
index rose from TAI to ISL. Further
European reductions of the central
bank rates have failed to influence Ger
man money and capital markets.
Improvement, If anything more than
psychological, is hardly supported by
current indicators and events. Unem-
ployment reached 4,670, 900 on January
is, an increase of 408, 900 for the first
half Of January compared with $4,000
during the second half of December
1t is likely the jobless will number s.
mn mn hxy aarIry TaI.~xxa a,,d rhavns