Evening star., 1932-06-19
ChamberIain's Opposition to
Further Tax Increases Cheers
British Interests.
UNEMPLOYMENT DROPS
10 PER CENT IN FRANCE
German Exports Unfavorably AT.
fected by Trade Barriers.
Stocks Are Weak.
Special Dispatch to The Star

| Special Dispatch TO The Star
NEW YORK, June 18-Cables and
| wireless dispatches to the Business
week give the following survey of busi-
| ness abroad for the week ending TO-DAY.
London: - Amicable Anglo French
conversations which have led to a more
hopeful outlook at Lausanne. plus the
assurance from Chancellor Chamberlain
that further tax increases are unlikely
mas once more developed a spark of
optlmlsm on British markets
Stock markets improved earf~ n the
week following a period of irregular
guinness. Bonds, especially foreign
issues, recovered. Money remained easy.
Inc large oversubscription to the Cen
traI Electricity Board issue of 10 mil
non. 4 = per cent stock which was issued
at 20, gave encouragement to pending
issues. Central interest continues to
De the prospective conversion loan of
2,oo6 millions of 1917 war loans from
ther present per cent rate to some
lower figure.
Industrial activity is still unsatis-
factory. though the iron and steel in
dustry is encouraged by the new 80 l-3
per cent duty which has been granted
ny the Tariff Committee on the condi-
tlon that the industry carry out long
considered naturalization plans. Since
thS Is one Of the four great British in
oustrleS, the decision has spread
optimism. There is still considerable
uncertainty over the labor situation in
the textile industry. Cotton weavers
VIII take new ballot soon which will
determine whether or not they will
strike or continue negotiations with the
owners.
Favorable Factors.
Britishers are displaying unusual in
tereSt In the short Summer cruises that
are planned by several steamship lines,
and bookings are heavy. Not a few
americans have signed up for these
Paris---During the week these factors
had favorable influence on French
market sentiment: Unemployment de-
cIlned 10 per cent, pig iron prices
frmed on completion of plans for a
safes compton; rayon lines we're more
active; heavy machinery and construc-
tlon equipment were in greater demand:
the construction industries were buster
as the national equipment program got
under way
Outstanding unfavorable develop
ments were the lessened demand for
coal because of declining industrial ac-
t.Vlty; the dwindling market for iron
ana steel and the very gloomy prospect
Tor export sales; the restricted market
for cotton and wool, and leather; and
the smaller demand for machine tools
though prices are flrmer and competi-
ton from secondhand dealers smaller),
The Bourse was irregular to steady.
There is still a plethora of money;
rates are low. Dollar exchange con-
tlnued to strengthen on reports from
New York that the foreign gold drain
was nearing an end
In the foreign trade report which
shows that France has reduced the i'm
port trade balance 25 per cent in the
first four months of 1882, it is also re-
vealed that the Soviet Union is the
only foreign country to show improved
trade with France. Soviet goods valued
first quarter. French exports TO Russia
on the other hand. were cut IS per
cent. totaling scarcely S230,000.
Berlin.-Sentiment was influenced ia
vorably during the week by four major
factors: ID the better outlook for Lau-
same, (2l the rise CT German bond
prices on foreign markets. and the
smooth prolongation of the fifty-million
dollar loan by the American banking
group to the Gold Discount Bank; t3)
DR.. Luther's strong anti-devaluation
speech tSlgnulcant because ne Is preSl-
dent of the Reichsbank), 90 the ac-
ceerated seasonal improvement in the
employment outlook the number of
Jobless decreased 10000 in May).
Germany's Cash Position.
Germanys cash position is still
strained but it seems likely now that 1t
will not become critical before the end
of July Among the cities. however, the
situation is worse daily. Duisburg this
, week failed to meet interest charges on
its 1923 loan. This probably marks the
beginning of string of municipal de-
faults.
Current indicators generally are not
,, favorable With the exception of the
large Russian orders still to be filled, the
steel trade is slack. Exports Of half
finished products to England have al
most ceased since sterling deprecated
and tariffs were raised. Automobile
production reports for the first quarter
are just available. show passenger car
output is off 46 per cent, trucks 81 per
cent Stocks on the Bourse were irreg-
ular and weak. Shipping stocks partic-
ularly broke when unfavorable company
rororfc uara roleaced