Evening star., 1932-07-03
FOREIGN BUSINESS
/. HOPES FOR ACTION
ON DEBT QUESTION
Lausanne Conference Is
Closely Watched for Signs
of Agreement.
GREAT BRITAIN HOPEFUL
ON INDUSTRIAL OUTLOOK
Germans Expect Adjournment of
Economic Farley With Temporary
Solution of Problem.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, July 2.-Cables and
wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
London.-The business tone in Great
Britain is still good despite the prospect
that Lausanne will accomplish no i'm
mediate results, and in spite of the re-
ports from any number of industries
that the improving volume of inquiries
has not been followed with definite
orders. Evidently most buyers are
waiting for some more definite settle
ment OF international problems before
making commitments.
Trading on the stock market dwindled
somewhat as it became evident that the
Lausanne conferees had run into diff
culties. People who are watching the
trend carefully, however, declare that
Investment interest is broadening
steadily. Industrial securities are be-
coming little more popular again.
Shipping shares spurted when Cunard
attracted interest with its new cheap
fuel experiments. Government funds
are in demand with fresh talk of con-
version operations. Money is plentiful
issues.
Textile Exports.
Textile exports are holding up well
above levels Of a year ago. Exports for
the first four months of this year were
nearly 80 per cent above those for the
same period last year. Largest i'm
provement came in the demand from
India.
Manufacturers are already looking
beyond the Ottawa conference, when
they will turn again to their great ex-
port markets outside the Empire An
all-British exhibition is being planned
to be held in Denmark early In Sep
tember. London statisticians have fig
ured out that British textile manufac-
turers supply only 20 per cent of the
textile demands Of the Danes, which
total s50.000,0 900 annually.
Machine and repair shop workers are
being increasingly affected by the
slump. The plain of the four great
trunk line railroads to work on closely
cooperative basis is causing a number
of repair shops throughout the coun-
try to close.
Another example of industrial adjust
ment comes from Carlisle where the
city abandoned. as too expensive for
local needs, the entire tramway sys-
TEN in favor OF privately operated
busses. After operating for a year the
Ribble Motor Transport Co., reports a
profit. Cooperation with long-distance
bus lines suggests possibilities for fur
ther refinement Of the country's trans
port sytem. In striking contrast was
the announcement by the London. Mid
land & Scottish Railway that preference
dividends would be passed this year.
Berlin.-Hopes for a Lausanne set
tlement which will be significant are
fading, with permanent adjournment"
likely and this, possibly, with nothing
further than temporary solution Of
the problem. Business recognizes the
merits of the Tranquil plan for cen
tral utilities holding company which
would relieve German capital anemia,
but it objects to the carrying out of
this idea prior to general agreement
on the cancellation OF -eparations.
Otherwise. there is danger that assets
will be misused for reparation pur-
poses.
Mortgage Credits.
The conflict among the various Reich
states has caused wave of Communist
rioting which is a strain on business
nerves, already exhausted by the Sc
quence Of two presidential and two par
liamentary electi0s within four months.
The realization is spreading that the
Hitler threat will take recourse to
SGSI Il46 holAo1C IL uGCcoSdIy 70 QSteIlu
itself
The bond market is depressed by the
hopefeSsness of Lausanne and by re-
ports of German plan for devaluation
Of private debts although the official
version of the plan applies to interest
only, not principal. Apprehension over
the security of mortgage credits is a
new danger source to the bond market.
Paris.-No encouraging news came
out Of Lausanne this week and the
French market reflects the disappoint-
ment of the business community. After
closing slightly up last week. prices on
the Paris Bourse reacted during the
first of this week to gloomy conference
reports, though losses were only mod
crate.
The informed Frenchman is aware
that Germany and France are likely to
get together sometime on an economic
program which will allow Germany to
survive industrially and financially and
which will appeaSe French demands for
further payments. The question now
is: Can this agreement come before a
further crisis is precipitated in Europe?
Certainly Lausanne has failed to bring
any immediate relief Committees
which probably will be appointed by
the present conference may be able 70
work out schemes, but that will require
time.