Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25
Signs OF Industrial Improve
ment Are Becoming More
Numerous.
FRENCH SAVE INTEREST
BY CONVERTING LOANS
British Business Tone Excellent
Advance in Stocks Increases
Hope for Recovery.
Sreeial Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 24-cables
and wireless dispatches to the Business
Week give the following survey of
business abroad for the week ending
today:
befnn-Germans are increasingly i'm
pressed that signs of recovery are be-
ginning to spread beyond a bare finan-
cai PICK The wholesale index is
rising. following the low touched in
mid-August. The number of bank
ruptcies in August touched a low of
4ss. in contrast to the peak of LASS
In October Of last year. The daily aver
age OF protested bills in August also
fell.
Signs Of Industrial improvement are
multiplying. Cotton weavers have re-
moved restrictions on output and the
shoe, rubber and hardware industries
are re-employing labor.
Bank Rate Reduction.
There is surprising lack of worrv
over the new elections, which have been
set now for November g. The opinion
Is quite general that the Won papen
government will once more find a way"
to maintain its control
The decision by the Bank of Inter-
national Settlements to allow the
Reichsbank to lower the rediscount
rate Is another cheering factor within
Germany. The new discount rate Of
4 per cent dnstead Of per cent?
VIII bring reduction in all Of Ger
manys international commercial in
terest charges. This will ease the lead
on the farmers and business men and
should improve the export position.
Foreign creditors are likely to be
pressed once more for further reduc-
ton in interest rates on their loans to
Germany.
Another attack on the depression has
been undertaken by the government.
new banking institution is being
founded to take over from German
banks assets which have become frozen
Paid-in capital Is expected to be nearly
s13,000,000. This nquidating institu-
ton will be given 20 years in which to
repay funds advanced to 1t. 1t is not
yet determined whether it will be neces-
sary to create second institution ard
allow one to handle only frozen credits
and the other new industrial loans
These two functions will be performed
and under government supervision.
faris-France's huge conversion op-
Grafton transcribed all other business
this week. The Chamber voted over
the weekend to convert the govern
ment's outstanding per cent, 6 per cent
and per cent obligations-which total
nearly $3,500, 900, 000-into new govern
ment securities bearing only Az per cent
interest Bondholders were given only
six days in which to ask for cash re-
funds. After September "a all rentes
are automatically converted. Returns
for the first few days were most opti-
mistic.
There is dual business significance
in the deal. Annual economies in the
national budget totaling $50 900 900 will
result from the lower interest rates. All
commercial credit throughout France is
likely to be available at lower rates.
There are $500. 100000 of idle capital
in the country. at least a part of which
may now be drawn into industry.
Industrial reports during the week
indicate that the metallurgical indus
tries are still operating on improved
schedules. Coal mines, on the other
gtan miners have returned to work and
demand from the North has eased.
British Securities Higher.
den return OF Ambassador Edge to
washington for special instructions
may be an encouraging sign.
London-On the anniversary Of
Britain's departure from the gold stand
ard. the general business tone is excel
lent. Gilt-edged securities are BOOM
ing and the huge conversion operation
* drawing to a triumphant conclusion.
Industrial stocks are selling at good
prices despite occasional setbacks from
proft-taking. Oils have benefited by
the recent Rumanian agreement to CO.
operate in world curtailment program.
Mining shares appreciated following the
recent record output at the Rand.
Rubber shares are selling at better
prices than for some years past.
Although major induces, especially
unemployment and trade volume, are
no better, there Is a general conviction
that real recovery is under way.