Evening star., 1932-04-10
BRITAIN MAINTAINS
OPTIMISTIC VIEWS
ON TRADE OUTLOOK
German Conditions Reflect
Continued Business De-
cline on Continent.
BELATED SPRING UPTURN
is REPORTED IN FRANCE
National Deficit of $500, 900. 900
by 1884 Now Seems Likely,
However.
Special Dispatch to The Star.


NEW YORK, April 9.-Cable and
radio dispatches to the Business Week
give the following survey of business
abroad for the week ending today:
LondOn.-The business tone in Britain
Is still good, but the prebudget hull is
pound to affect volume during the first
weeks Of April
.. domestic factors support recent op-
tInllsrn: The London Stock Exchange
Gonnoent and buoyant, and there is
SUN zeal OF optimism over the budget
surplus. A further change in the hank
rate is anticipated at an early date
The present level of 315 per cent is at
least per cent too high for the market
relationship.
Inc vagarieS of sterling continue to
occupy the business mind Proft-tak-
ing and slackening in the flight from
tne dollar have sporadically checked the
rise OF the pound, but the upward trend
Is expected to continue
Budget Action Watched.
Commodities have reacted to sterling
the depreciation being a serious matter
Tor shippers and merchants, with fears
tnat dealers might cancel orders WASH
lngton Is regarded as the KEY. and Lon
don is as keenly interested in the
United States budget as America her
sell. A solution to the Congress dead
lock Is expected to result in a relapse
IN sterling without further official in
tervention.
Berlin.-The progress of diSintegra-
tlon which is evident in most countries
on the continent is reflected in Ger
many. Domestic industrial production
has contracted further, and the prospect
OF declining foreign demand is most
diScouraging.
The Boerse is depressed. Money is
easier following quarter-end PAYMENTS
The private discount rate is down u
per cent. ~
Industry is urging the government
10 open negotiations with foreign lonp-
term creditors to set up a standstiIl on
tne long-term obligations similar to
that arranged by the Wiggin Commit
Tee Tor Short-term interests last Decem-
Der. Germany is inevitably approach-
ing a complete transfer moratorium
How soon 1t may come may well be sur
missed after the March trade returns
are known.
There were two cheering develop
ments during the week. Industry re-
ceived share of the big pipe order
irom the Iraq Petroleum Co., which
40 AZ" 6OA46 dl1CdO Will DIdIS 10 DlDG
the famed MoSul oil to the Mediter-
ranean. Exporters saw the first peace
ray in the almost universal tariff war
in the announcement that Germany
and Poland had reached a new trade
agreement restoring the foreign trade
OF the two countries to the December
status quo
Paris.-Last weeks feeble signs of a
belated Spring revival continued this
week. There was another slight decline
in unemployment, and some fresh i'm
provement in the textile and metallur-
g1cal industries. Construction showed
slight Improvement; rail receipts
were up.
Business Anxiety.
Business, however is showing distinct
anxiety as to the future. It is now
taken for granted that the present ma
jority in the government will be swept
away at the forthcoming elections, set
now for May l, and that a Socialist
Liberal coalition will dominate the fu-
ture Chamber. The treasury is WELL
nigh empty, the budget situation is
serious. According to authoritative re-
ports, the 1930-31 budget will show a
final deficit of $50, 100000. The current
1912 budget, one of S100 900, 900 to
100000, 900, and the 1882 budget bill
has here and now an actual deficit of
at least S120,000,000. BY 1884 it seems
France inevitably will face a national
deficit of at least $600,000,000
The exchange compensation surtax"
of is per cent ad valorem has been
extended to apply to Japan. despite the
latters protests, due to the deprecia-
ton of the yen. This would tend to
deny the opinion that Franco-Japanese
relations are extremely close.