Evening star., 1932-03-06
FOREIGN ECONOMIC
PICTURE PRESENTS
|. BRIGHTER ASPECTS
Japanese eCurities
Strengthened by Prospect
of Peace at Shanghai.
BRITAIN'S INDUSTRIAL
POSITION is IMPROVED
Paris and Berlin Reflect Changes
for Better in European
Financial Outlook.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 5.-Cable and
radio dispatches to the Business Week
give the following survey of business
abroad for the week ending today:
Far East.-Sporaoic talk of a truce
at Shanghai and the ultimate ending of
host1lltles have reacted favorably on
Japanese exchange and on bonds. The
lack Of any definite agreement, however.
mas precluded any lasting improvement.
Though Shanghai shops reopened as
soon as hoStilities moved from the i'm
mediate vicinity of the International
settlement, general trade is increasing
ly curtailed. 1t is estimated that 200
600 factory workers have been thrown
out OF employment, and another lao, 900
handlcraft workers are temporarily en-
ployed because of fighting in districts
in which they worked. Only eight
Chinese and one British textile mills
are still operating. Yarn production
IS running at scarce 10 per cent of
capacity. The Shanghai Stock Ex-
change is expected to reopen soon.
The japanese situation Is economic
ally less favorable Foreign trade in
the last 10 days in February continued
to show heavy adverse balance. I'm
ports exceeded .S20,000,000, mere than
one-third OF which was cotton. Exports
AoAA W OAlly O1zJOUO,UUU.
Paris.-There are only the slightest
indications of improvement in trade and
industry. Wholesale prices reveal a
sllght rise OF points in all products,
and of points in products particularly
French. Some activity has been noted
In metal semi-manufactures. and a few
textile factories particularly WOOL in
the North have increased the number
OF operatives. One of the signs of the
times, and measuring stick of busi-
ness conditions in France Is afforded
by the decline of French government
revenues. In January receipts reached
the lowest point during the last 10
months. The yield from the sales tax,
perhaps the best available barometer
OF business conditions, is now 20 per
cent below the return of a year ago.
Since last November customs returns
have shrunk rapidly. In January re-
ceipts fell $20,000,0O0 below the es-
innate and s76.0o0, 900 below receipts
| In January, 1881. Total deficit for the
year closing March 81 is estimated at
S2e0 100000, but these estimates exclude
deferred obligations totaling several
times this amount.
London.-Financial and industrial
Londcn frightened perceptibly this
week, due to a number Of developments.
Sterling has been steady. Investment
interest, which has Jagged In recent
weeks, is reviving. Returning conf
dence is bringing brisk demand for
gilt-edged securities.
Industrial interest has focused on
two developments The British Indus
tries Fair is meeting with unusual sue
cess.
The second, and far more significant
development was the establishing, on
March l, Of Britain's 10 per cent general
tariff. Britain'S harborS presented wild Z.
scenes as 400 vessels crowded into ma
jor ports to discharge cargoes before
they were caught by the new tariffs
Jammed in the Tilbury district below
London were 200 vessels, among them
the President Harding. which had
raced across the Atlantic with 1864
ton general cargo. For several days
LloydS and other insurance brokers did
a moderate business in insurance
against failure to arrive ahead of the
deadline. Not few vessels, caught in
unusually heavy Channel weather,
failed to pass customs Before midnight
February 29 ............
Berlin.-Business, during the past
week. has been digesting the bank re-
organization plan With no sign of
panic and no shifting Of deposits. Nor
has there been any unfavorable de-
'elOpINeHI connected WlbH 6ne reOpeH-
ing. on very restricted basis, of the
Berlin Bourse. Stock trading was brisk
the first afternoon, but the govern
ment's prohibition on the quotation of
prices has prevented the return of nor
NAL functioning, and this week trad
ing has dwindled to small proportions.
Retailers in particular have been en-
couraged by the announcement from
the price commissioner, Carl Goerdeler.
that he considers he has completed his
duties.
Unemployment figures for recent
weeks seem to indicate that the peak
was reached in mid-February; that it
was no higher than was foreseen last
Fall. The government is drawing small
hope from this failure to exceed ex-
pectatiuns. however, since industrial
activity is at such low levels, building
is absolutely stagnant. and exports aTo
dwindling. The machine industry is
working at barely 80 per cent of ca
pacity, electro technical shops at As
per cent of capacity. general engineer
ing industries at 81 per cent of ca
pacity.