Evening star., 1932-06-05
FOREIGN BUSINESS
AWAITING RESULTS
| OF LONDON PARLEY
World Economic Conference
Is Held More important Than
| Lausanne Meeting.
U. 5. BUDGET BILL VOTE
INSPIRES CONFIDENCE
German Fiscal Problems Again
Press for Solution Following
Bruening's Downfall.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June 4.-Cable and wire
less dispatches to the Business Week
give the following survey of business
aDroac Tor the week ending TODAY:
farls.-BuS1neSs was virtually sta
tlonary all week, but sentiment turned
optimistic when reports reached Paris
OF the passing of the budget bill bv
the Senate in Washington and when
reports began to come in from various
capitals promising cooperation in an
international conference to be called
at London late in June.
Factors contributing to business gloom
curing the week were the change of
government In Germany, the prosnect
that Lausanne, if the conference is
held at all, can accomplish nothing in
the way OF final settlement of the
reparations and debt situation. and
lresh reports of the mounting railway
deficit.
Quota Adjustment.
American business is cheered bv news
that Paris and Washington have come
10 an agreement on quota adjustment.
Details will not be revealed until next
week, but it is understood that France
mas announced that moSt-fayored-na-
ton treatment will be applied to the
quotas and that the United States will
accordingly gain larger rations when
the quotas are revised Manufacturers
OF radios, radio tubes, patent leather.
electrical equipment. machinery and
lumber products will benefit particu-
larly.
London.-With Lausanne only two
weeks away and with almost no hope of
extending its agenda to include the all
important problems of currencies and
tariffs London has pulled itself to-
gether after the shock of the return to
the old militarist leaders in Germany
and invited the world to attend an in
ternattonal economic conference. Rep
aratlons are serious, but more imme-
olate now Is the need of opening stran-
gled trade channels. 1t must be done
soon. Britain is taking the initiative.
With reparations barred from the dis
cussions, the United States has agreed
to take part. Business is transferring
TO the London conference all the hope
that has attached to Lausanne.
Domestic conditions have been unset
tied all week. Stocks are touching new
lows on rumors Of the near collapse Of
important insurance interests: the fear
OF higher taxes in a supplementary budg-
ct, the likelihood Of a strike among
the weavers in the cotton textile indus
try; the possibility of a stoppage in the
coal mines unless workers and operators
come to some agreement, and finally the
confusion over the suspension of an i'm
nortant Liverpool cotton broker
Berlin.-Germanys cabinet fell this
week because President Won Hindenburg
refused to accede to Chancellor Bruen-
ings demand that the large estates of
the landed gentry be parceled out
among the unemployed. Col. Won Papen,
one-tine Ambassador to Washington,
has been called to form new national
cabinet.
Effects on Business
The principal repercussions on busi-
ness of the sudden shift in the govern
ment are: Q) Bruening's plans for bal
ancing the budget are upset and the
whole matter is delayed; 90 the de-
cline in bond prices and the sharp rise
in stock prices suggest an incipient in
fation panic; 90 strongly representing
/ industry and agrarian interests, the
cabinet is likely to start new drive for
! wage cuts.