Evening star., 1932-07-31
LONDON AND BERLIN
ARE OPTIMISTIC AS
.PAR|S MARKS TIME
Ottawa Conference and Irish
Tariffs Only Dark Spots
on British Horizon.
BUSINESS IN FRANCE
NOW AT STANDSTlLL
Borah's Attitude on War Debt
Problem Felt Abroad-Ger-
man Jobless Increase.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, July 3o.-Cables and
wireless dispatches to The Business
Week give the following survey OF busi-
ness abroad for the week ending today;
IONDON.-Basically, British markets
are still optimistic. In the three weeks
since the great conversion operation
was announced more than half OF the
holders of the old war loans made plans
to convert their holdings.
There are other encouraging factors.
Stock markets have been firm during
most of the week, though the volume
of buying was not large. Except for
metals, commodities have continued at
fairly steady levels. Germany has
agreed to Join the Anglo-French accord.
Italy has appointed one of her most
able statesmen-Grand formerly for
eign minister-AmbaSSado to London,
indicating an intention on the part Of
Mussolini of cooperating with Britain
In any conciliatory schemes for eco
nomic rehabilitation.
Ottawa and ireland.
Two factors we're less favorable. The
Ottawa conference Is causing anxiety.
Dominion demands for food preferences
COl1llCL
the national government that food for
Britain will not be taxed. At the same
time. dominion offers of preference for
British manufactures are less favorable
than the British have been anticipating.
II the Ottawa conference breaks down.
it is confidently expected that 1t would
cause a government crisis
The second disturbing feature was
the carrying out Of the Irish tariffs.
None is yet willing to believe that the
impasse will last for long, but business
is already painfully aware that the
levies both ways are operating now and
that the results may be more unfor-
tunate the longer the breach lasts.
Britain's tariffs on Irish products affect
principally food products-eSpeclally
meat and dairy produce. Ireland's re-
taliatory tariffs hit boots and shoes, iron
and steel. sugar. cement, electrical goods
and coal. CZechoslovakia is likely to
get the sugar business. Germany Is
after the coal and electric appliance
market. Belgium wants the cement
business Steel orders are likely 20 be
divided between the United States and
the Continent. Ireland bought from
the British last year nearly $40 ,oOo-
PARIS.-French business is marking
time Reports this week show no de-
terioration over last week, but business
obviously is In the Midsummer dold-
runs. In view of French plans for
major conversion operation early in the
Fall, each days report from London Of
the success of the British conversion
Is viewed optimistically. Likewise, end
of-the-week reports from Berlin, where
martial law has been withdrawn, Is
viewed more hopefully.
Stock markets firmed during the week
on better reports from Wall Street. on
the hopeful note in Senator BorahS
proposal for debt reduction, and in the
lessening of tension in Germany.
The governments budget committee
is remaining intact in Paris despite the
adjournment of parliament. Working
under Premier Herriot, it is expected
they will remain busy throughout the
Summer in an effort to devise further
means Of economizing and thus balanc-
ing the 1888 budget 1t is rumored In
Paris now that an attempt will be made
to cut government personnel to the
pre-war level. This would mean letting
out nearly 10000 workers whose salaries
alone are costing the government nearly
one-third the amount Of the estimated
budget deficit.
Berlin Improves
BERLIN-BusineSs sentiment re-
covered late this week on the ending
of martial law in Berlin and reports
that Senator Borah Is backing United
States reconsideration of the war debt
problem.
Securities markets have remained
surprisingly firm all week. Unemploy
ment, however, increased, the first time
since February indicating a premature
end Of seasonal improvement which
was well below normal.