Evening star., 1932-08-28
FOREIGN BUSINESS
TONE IS IMPROVED
I BUT TRADE E|SSLOW
British Opinion Divided on
Results Likely to Follow
Ottawa ParIev.
FRENCH MAY CONSIDER
PACTS WITH COLONIES
German Financial Situation Is
Clouded by Governments Strug-
gle With Hitler Party.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August 27.-Cables and
wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
LONDON-Domestically the tone Is
good, but actual business is slack. Per-
haps that is an important reason for
the special interest in the Wall Street
boom. Trading was buoyant early in
the week and stock prices generally
firm. American bonds were popular.
Interest in German bonds is tagging.
London some time ago discounted
the results of the Ottawa conference.
Opinion Of the value of the conference
Is conflicting. Generally, business Is
inclined to await full consideration of
the new accords and the moves which
may now be made by the government
to go after other trade pacts outside
the family
Commodities have been irregular this
week. Cereal prices declined. Cotton
was up. Sugar, coffee and cocoa were
all more active. Metals were easier,
though the promise of protection for
copper in the Ottawa agreement caused
a bit of a stir in the trade.
Industry still shows no sign of recov-
cry. Retail sales are holding steady.
1t was reported this week that the Brit
ish subsidiary of Proctor & Gamble
is enlarging its plant.
One very encouraging report came
out Of the July statistics Of industrial
activity. Electric power production in
creased 2.6 per cent, reached the high
est figure for any July. When COM
pared with last July, with proper al
lowance for a difference in the number
of working days, output was UP per
cent.
PARIS-Business generally has not
been properly responsive to the stimulus
which has come to commodity prices
in the United States. The iron and
steel industry Is stagnant, with no pros
poets yet for better Fall business. Many
plants have been forced to sell at cost
prices to meet severe competition for
the few orders which are being placed.
There has been some flight pickup
in the coal region due to the contin-
ued labor unsettlement in the Belgian
mines. The industry, however, Is aware
that this Is only temporary relief.
France Is relieved at the Ottawa re-
suits. Empire trade concessions will
cut into some trade which France or
the colonies may have enjoyed, but they
are neither so extensive nor so IRON
clad but that other countries will still
have opportunities for bilateral agree
ments. In fact, there are rumors In
Paris now that the French are con-
templating the calling of an economic
conference of all her colonies to at
tempt to negotiate closer trade agree
ments. Also, negotiations under way
with representatives from the United,
States are aimed at ending the onerous
quota restrictions which the French
have set up and at reopening mutual
trade channels now barred by the
chauvinistic measures which have been
taken by both the French and the
Americans.
BerIin.-The German business out
look is still dominated by the continued
political struggle between the Won Papen
government and the Nazis. The sit
uation is extremely serious though
business has not yet had its confidence
shaken in the ability Of the Won Papen
cabinet to maintain control.
On the Boerse. stocks were hrmer on
local buying Though not at all buoyant
as on Wall Street,, but bonds were
nervous due to rumors Of another COM
pulsory reduction in interest rates. No
amount of clamoring from bankers
and from business men has convinced
authorities of the Bank for Interna-
tional Settlements that they should al
low the Reichsbank the right to re-
duce its discount rate from 5 per cent.
Commodities are not following the
upward trend now seemingly well es-
tablished in the United States. Indus
trial improvement is almost insigni-
ficant and Is very spotty. The steel
industry is operating at only 80 per
cent of capacity, but has had a slight
pickup in orders in the last few weeks.
The textile industry is getting few
fair orders for Fall and Winter busi-
ness. The machine tool industry is
trifle more active and home orders
for agricultural machinery showed q
flicker of activity in August.