Evening star., 1932-07-24
bR|TA|N'S BUSINESS
WORLD CHEERED BY
LOAN INTEREST CUT
War Debt Conversion Will
Save Large Sum for En-
pire's Treasury.
Special Dispatch to The Star.


NEW YORK. July 23.-Cables and
wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
London-The continuing successful
progress of converting the war loans
to the lower interest-bearing basis is
cheering British business. The tone
on the stock market is good despite
Slight price set-backs this week as
proft-taking continued. News from
Germany, too, took a little of the
buoyancy out OF bond buying, though
prices are still well above the old pre-
Lausanne lows.
The Treasury touched its cheapest
borrowing record last week when Treas
ury bills sold. for three months. at an
average discount of los 604d per cent.
compared with It's 2.38d per cent the
previous week.
- - Coal Mining Curtailed.
Activity in the coal mining regions
is being curtailed with resulting in
creases in the number of unemployed.
The number of jobless at the end OF
June was 5000 above the total at the
end of the previous month. In most
other lines of industry. however, there
has been some improvement. Ship
builders have received their first orders
for the year.
The most discouraging element in the
foreign trade outlook is the awkward
situation which has developed in the
relations with Ireland The squabble
over land annuities is dragging on. Lon
don has levied a tariff or Irish imports
ostensibly to make up in the budget
the sum which Dublin has refused to
pay. Dublin. in turn, is planning re-
taliatory tariffs. And with the dis
pute continuing. Germans are after the
irish coal market, and are likely to get.
it. Welsh coal miners already are Wor-
ried over the outcome.
Paris.-Parliament has wound up its
Spring session and adjourned, but with
out balancing the budget. In the face
of declining trade balance. higher in
come taxes were voted. which will run
from 1872 per cent on minimum IN
comes of 10000 francs to 35 per cent
on the higher brackets.
Stock markets during the week
firmed. with advances being registered
by rentes and rails generally. Rentes,
in particular. were firm following the
passage by the Chamber of bills de-
signed to help the treasury and by the
governments clearly expressed decision
to convert a considerable part of the
internal debt along lines adopted by the
British.
After slight increase in activity in
May. the metallurgical industry is
again depressed this time by the de-
crease in military and naval orders re-
sulting from budget economies. Auto
mobile sales. on the other hand, are re-
ported by the country'S three largest
firms to be running ahead of actual
production. The slight improvement in
textiles continues. but there are no
hopeful reports from the coal areas
unemployment on July was again
slightly up.
Berlin.-Germany is in the throes Of
4 serious political campaign. which is
strongly curtailing business aggressive
ness. Prussia. which is two-thirds of
all Germany in area and population, has
been placed under dictator and Berlin
is under martial law as result of the
clashes between political factions.
Political Factor.
Business, which was somewhat cheered
by the first reports of the Lausanne de-
cision, though stock markets had al
ready discounted the decision, is now
completely under the shadow of the
coming elections July 81. The placing
of Prussia under dictatorship is likely
to revive the secessionist talk in South
ern Germany. Stock prices have SOFT
ened. but bonds are more resistant.
Industrial activity shows no signs of
improving soon. June steel output fell
% per cent below the Nay level as do
mestic business failed 10 develop and
large Soviet orders we're completed.
The number of unemployed declined,
though seasonal improvement is far be-
low normal.