Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20
Kreuger Death Casts Shadow
Over Dealings in CONT
mental Securities.
GERMAN TRADE HOPEFUL
AFTER ELECTION RESULT
Britain Is Cheered by Evidences Of
Flrmer Tone in Home Mar
ket Operations.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 19.-Cable and
raolo dispatches to the Business Week
give the following survey of business
abroad for the week ending today.
Far East.-Politically the situation
at Shanghai is more encouraging this
week: Japan is preparing to withdraw
ner troops; Fighting seems definitely
TO nave discontinued Even in Man.
churia outbreaks have been reduced to
small sklrmishes. With the termina-
ton OF actual hoStilities around Shang-
nal, business in the International Set
tlement Is resuming some semblance of
normally. Industrial plants. EXCEPT
japanese establishments are gradually
resuming operations, with cotton SPIN
ming and weaving mills operating at
about IS per cent and flour mills and
cigarette factories at so per cent of
capacity. Total loss to Shanghai BUSH
ness incident to the hoStilities Is ex-
pected to reach $65.000.000.
Shipping Quiet.
Shipping still shows no improvement.
Hongkong wharves and warehouses are
congested with freight shipments orig
lnally destined for Shanghai Reports
from Japan lack completeness. Do
mestlcally the situation is unfavorable.
February foreign trade showed an I'M
favorable balance of $17,000000.
PariS.-Even the bourse was disap-
pointed this week. Though due pri-
martly to the scare caused by the un-
fortunate Kreuger affair, the drop in
prices after the steady rise of recent
weeks tended to attract attention to
the unfavorable economic conditions
prevailing in the country. Recovery
late in the week was irregular. Unem-
nINVYnant continues n rico Tn, h.
textile industry, despite the small i'm
provement in northern areas where
moderate purchases of raw material
have been resumed, so per cent of the
looms are still idle, and it is estimated
that no less than 100000 workers are
jobless. Commodity trends are weak.
In almost every industry buying con-
tinues on a handto-mouth basis. Al
though moderate quantities Of Kreuger
81 Toll securities, mostly of a nom
speculative nature, are quoted on the
Paris bourse, transactions were circum-
scribed this week by brokers'
syndicate, which prevented extreme de-
clines in related stocks, but failed to be
a sufficiently steadying force to prevent
prices generally from falling 10 per cent
to 10 per cent the first day. Bank
stocks were especially hard hit. Though
the market recovered some of the losses,
the whole affair is taken by the French
to indicate that the end of the worlds
financial crisis is still remote.
Naturalization over last Sundays
balloting is giving business deal Of
satisfaction Many a responsible
executive is relieved of the nightmare
of a Hitler victory and the ascendency
of the radical policies which would
have followed it. Watched by Germans
and German creditors alike are the
country's foreign trade figures. The
February trade balance, just announced,
Is favorable, but it is nearly $5,000,000
below the January figure which was
admittedly barely enough to meet
foreign commercial service charges. II
the February surplus, 100000 (rep-
arations- in-kind excluded) is to be &C
cepted as an average, it is already
evident that Germany will not be able
to meet foreign obligations.
Imports Improve
Exports in February totaled $685.
600. 600, nearly the same as IN January.
Imports. at sos, 100000, were up
nearly $4,000,000.
London.-Britain's tide of returning
confidence. of real optimism, refused 10
be downed this week by possible Dan
geroas developments growing out OF the
Kreuger 81 Toll troupleS. OnutI Iilo
stimulus of last weeks cut in the bank
rate, cheered by the election results IN
Germany, and still stimulated by the
new protection offered by the tariff, the
business tone remains good, prospects
comparatively bright.
London markets reacted with those
on the continent Monday, but setbacks
were less serious than in either Paris
or Berlin. Britain's unfavorable trade
balance in February is viewed with no
alarm. Imports the last month before
tariffs were bound to be large. Exports
are holding their own. Cotton textiles
especially are selling well IN foreign
markets. British steel production in
January topped that of Germany, the
first time this has been the case since
long before the war France kept the
lead but was slipping.