Evening star., 1932-03-27
FOREIGN BUSINESS
FAILS TO REGISTER
USUAL SPRING GAIN
Far Eastern Situation Shows
Signs OF Gradual Return
to Normal.
BRITAIN IS BRIGHTEST
SPOT IN TRADE WORLD
French and German Conditions
Continue to Reflect Uncertain
Economic Outlook in Europe.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 26.-Cable and
radio dispatches to the Business Week
give the following survey of business
abroad for the week ending today:
Far East.-Surface conditions show
some improvement this week. In
Japan, loans to the new Manchurian
state are under government considera-
tlon. Already increasing orders from
Manchur1a are benef1ting the sugar,
IRON and steel, cement and machinery
industries. Other foreign trade is un-
favorable. During the second 10 DAYS
OF March, imports exceeded so million
yen, exports failed to total 81 millions.
Japanese expect the unfavorable trend
TO continue through mid-April
Conditions are gradually returning to
normal in China The demand for.
wheat has increased and flour mills
are operating at about rs per cent of
capacity. The tight money situation
among native banks is still hampering
business, especially among small mil
lers. Textile mills are gradually re-
Summg operations. Average monthly
cotton consumption from October
through January was 10000 bales. In
FEBRUARY this fell to 10000 Consump-
ton during March is still below the
average, but there are indications that
In April, when Japanese mills plan to
reopen, it may return to normal.
Paris.-The French economic situa-
ton grows increasingly less favorable.
This week unemployment continued to
increase. February tax receipts were
IL per cent below estimates and total
receipts for the first IL months of the
f1scal year were S30,00O,OOO under
preliminary estimates.
Sales Tax Returns Smaller.
The sales tax returns in February
were "a per cent smaller than antic-
ipated. Spring automobile sales are
IS per cent below normal. The ad-
verse trade balance in February exceed
ed $26,000,000, bringing the total un-
favorable balance for the first two
months to 48 millions. The latest
statement of the French RAILWAYS
shows receipts were off nearly 81 per
in 1881.
Last weeks disappointing interest in
the Bourse continues, with prices gen.
orally lower.
Usually one of the most popular, the
Lyon trade fair closed March 20 al
most complete failure. Prospects for
the Paris fair, scheduled for May, are
not bright.
LOndon.-Britain Is no doubt stiIl
the brightest spot in the European eco
nonic picture, though optimism fat
tened little this week and some Of
the recent buoyancy was lacking.
Probably the most favorable factors
were the steadineSs with which stock
markets have withstood the shock of
the kreuger affair, the decision of the
NJ EfT1nloNaA b.
count rate another y per cent from
4 per cent, and the assurance that the
budget this year is balanced. There
is some encouragement, too, in the con-
tlnued decline in unemployment, in the
volume of fresh orders being booked,
especially by textiles, and in the pros
pect of revenues from the new tar
ifs, though it is doubtful if the re-
turns this year will be large enough to
Justify any lowering of the income
tax.
Less Favorable Factors.
There are some less favorable fac
tors. Commodities were weak rubber
dropping to new low when negotia-
tions with the Dutch for a new restric-
ton scheme fell through, and sugar
because it seems unlikely that Cuba
will agree to the latest proposal from
the International Institute for a guar
antee of a reduction of Javan sales
this year.
Despite the improvement in the tex
tile industry, there is still the threat
that labor troubles in Lancashire are
not so near final solution as recent re-
ports have led the public to believe
Though 1t is possible that weaverS are
ready to agree to operate six looms per
worker. instead of the traditional four.
there is still a question Of wages on
which owners and weavers have not
agreed.
BerIin.-After a week of worried OBJ
servation, Berlin is ready to admit that
the Bourse has been relatively unaf-
fected by the Kreuger affair. There is
satisfaction in the prospect that normal
stock trading will be resumed April s,
with publication of prices for the first
time in many months.
The gold loss of the Reichsbank,
coupled with the unsatisfactory Feb
ruary trade balance, has caused the
business press and trade associations
openly to raise the question of an i'm
pending moratorium on interest pay
ments on long-term obligations and to
urge the government to make a timely
start on negotiations with creditors.
Apart from the slight increase in
coal and steel output, industrial produc-
tion is slack, with seasonal recovery be-
low normal.
STERITNC GANG pApTnVv