Evening star., 1932-10-23
Better Reports From Indus.
trial Centers Strengthen
Securities Markets.
FRENCH BUDGET DEFICIT
is FACING PARLIAMENT
Low Prices in Primary Materials
and Tariff Wrangle Have De-
pressing Effects on Trade.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, October 22.-Cables
and wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today.
Berlin.-A steady advance of bond
prices, particularly on government
| issues, marked returning confidence in
Germany this week. The investing
public made no rush to re-enter the
| market, but there was a steady, strong
interest which spread far beyond pro-
fesslonal traders. 1t was the most
encouraging development in German
| business.
Cheerful reports from industry con-
| tinued to accumulate in Berlin. Rayon
producers topped the list of industries
| reporting better business" in mid
October. Other textiles were active,
| but the cotton people felt the reaction
in the price of raw cotton, which made
| buyers hesitant to stock far in advance.
Gains in Steel.
Steel is making small but persistent
gains. Total sales for the third quarter
dropped slightly below the second quar-
ter but, within the total, home sales did
not decline for the first time in any
quarter since the beginning of the de-
preston October business in all lines
| is better. Russia is rumored to be after
some more German steel, but wants to
pay with bills maturing in 1884 No
new Soviet orders of any consequence
have been booked during the week
Employment improved as various in
dustries called back their workers to
execute the flow of new business.
Foreign trade returns in September
showed surplus of exports worth $40
000,c coo. This is only 100000 below
the August surplus, and is due more to
higher prices for imports than to any
other one factor
The most unsatisfactory element in
the economic picture is the threat to
the countrys export business. however,
due to the retaliatory measures which
| number of good customers have in
augurated following the recent imposi-
tion of import quotas
A German trade delegation is now
/ rushing frantically from one to the
| other of the country's disgruntled neigh
bors irving to patch up the difficulties
which have followed the quotas After
| relatively successful visit to Belgium
tthis country was the least affected by
the German restrictive measures and an
agreement was therefore comparatively
easy to arrange) the German commits
sion intrusted with these negotiations
commonly called the tomato commits
sion'-went to The Hague. where the
| negotiations led to a complete rupture
within "a hours. The Dutch fatty
refused to give their assent to the
proposed import contingents Public
opinion is extremely hostile toward
! Germany and demands from its own
| government immediate reprisals.
In the meantime the boycott move
ment against German goods is rapidly
| spreading and is being carefully organ
| iZed. Even German shipping companies
are confronted with the refusal Of
Dutch exporters to ship their goods by
German steamers.
Paris.-Althuogh certain industries,
notably iron and STEEL and textiles, re-
port some improvement in the volume
OF orders in recent weeks, all executives
are complaining of the necessity of
bidding so low for new business that
| it Is impossible to make any profit.
Losses are taken. however, rather than
| reduce employment further. The i'm
mediate position hinges on the Govern
| ment's ability to untangle the Franco
German armament and tariff disputes.
| Until this is accomplished. continuance
of the European business marasmus is
| inevitable.
lax Problem.
Parliament has been convoked for
October as and will proceed Immediate
ly with the solution of the 1888 budget
deficit which, through July, was es-
! timated to have reached a total of
| 5000. 100000 francs. but which is now
! believed to have mounted to IL. 900 ,OOO,-
1 600 or even $4,000, 100000 Although
| some pretense at economies will be
made for appearances sake, it is i'm
| possible to see just where they can be
made, since a reduction in government
| salaries or in the war pensions would
cause the overthrow of the government
and establishment of a pure socialistic
| order
The ultimate outcome of the budget
! problem, therefore, pivots around an
! increase of middle class taxation, i'm
{ mediate relief being afforded by further
/ government borrowing. 1t is the belief
of the nations Finance Committee that
| government needs will exceed 20,000.-
100000 francs by 1888 This will more
than counterbalance the total sums
amortized since the stabilization of the
franc, and it may be further accentuated
! If the recently discussed project for an
| other 100000, 900 public works plan,
| to combat unemployment and the recent
accelerated decline in industrial activity,
Is accepted by Parliament.