Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25

again into the slough of despond" We
had near" financial panic.
Now. with the German reparations
problem settled and gold returning in
large volume to our own shores. with
commodity prices advancing and at
least some improvement in the labor
situation. recovery from financial dis
tresS Is well under way. Conditions in
the Old World are improving concur
rently with those in our own country.
Representatives Of the Government in
Europe report growing support for a
general return to the gold standard.
Central banks are giving the matter
serious attention in private conferences.
according to commercial attaches in
Europe. Return to the gold standard
has been advocated by the Bank for
International Settlements.
General price and other conditions in
Europe are so much better that Secre-
tary Of Commerce Chaplin felt justified
in calling attention to them He noted
distinct change in many parts of the
industrial old world. Almost steadily,
during the past three years. prices in
foreign countries have tended down.
ward. In June of the "a countries from
which data had been received only two
reported prices higher than in the pro-
ceding month. OF the 18 foreign coun-
tries for which July statistics are now
available, however, eight show increases,
two show no change and only five re-
port decreases greater than one-half of
l per cent. with the increases fairly well
distributed between agricultural and
agricultural commodities.
Reports for August indicate g fur
Their strengthening of foreign prices.
The composite index for the United
Kingdom advanced for the first time
since last November, the advance being
generally noticeable in prices of food
stuffs and wool. Prices in Canada and
Norway showed advances. Holland and
Belgium report much better business.
Central Europe generally reports bet
ter business tone, while good crops in
France have added cheering note.
There have been number of confer
enceS of international significance, all
Of them, 1t is pointed out by Treasury
and Commerce officials. recording some
advance in international understanding.
Some time during this Fall or Winter
another one will be held, which will be
purely economic in character, and, al
though the representatives of the
United States will no doubt refrain
from discussing debts or tariffs, these
subjects will. of course, come up for
general discussion. Tariffs and other
restrictions of trade are numbered
among the obstacles to revival OF world
business.
American foreign trade. according to
Department of Commerce figures this
week, has had a favorable balance for
the first time in many months. An
American merchant selling goods to for
eign importers. however, is finding diff
Guilty in getting payment, not because
the foreign merchant Is untruStWorthy,
but, since there are so many restrictions
on exchange. he cannot buy dollars to
meet his obligations. His government
is likely to need foreign exchange to
meet the service of its debts, and so
absorbs most of it's available exchange,
leaving very little for its private i'm
porters. With the return to the gold
standard possible in the near future In
a number of these countries and with
loosening up of exchange restrictions,
International business would revive.
Figures Of gold imports for August
show a surplus for the first time in
months. This has persuaded many
Government economists to conviction
that the commodity price advances OF
recent weeks, despite fluctuations, may
be of a permanent character. If these
are really representative of gold prices.
these economists believe, bankers will
soon begin to realize on the benefits of
the new psychology. With plenty of
gold in the. country. confidence in the
banks will return, and, with the help
Of the new Government agencies to
credit, they believe business must con-
tinue to improve.
Copyright, l932.)