Evening star., 1932-10-09
FRANCE NOW FACES
NEED FOR FURTHER
ECONOMY PROGRAM
Nation Has Been Showing
Sharp Reductions In All
Trade Lines.
GERMAN STOCK LOSSES
REFLECT CREDIT SLUMP
Resumption of Work in British
Textile Mills Bolsters Tone of
Empires Business.
Dispatch to The Star.

SpSNAaA O4SpdtCIl 10 l he oldr.
NEW YORK, October 8-Cables and
wireless dispatches to the Business Week
give the following survey of business
abroad for the week ending today:
Paris.-It is becoming more ap-
parent each week to the critical French
man and TO observing foreigners that
France is Slipping further toward the
depression bog which she avoided so
successfully long after the other ma
tons had become engulfed.
The overwhelming success Of the war
loan conversion operation, while grati-
lying. cannot be accepted as a sign
that the public has accepted the idea
OF credit depreciation -heartedly.
The project was railroaded through in
Just six days, and those who failed to
apply for cash redemption on their
holdings will find them automatically
converted TO bonds bearing the lower
Interest rate. This is strikingly in con-
trast to the carefully organized British
campaign, long publicized, and opera
tive Tor an entire month.
Foreign Trade Declines.
There are other signs that France
is not following the general world trend
OF slow, but still visible. recovery.
Foreign trade for the first months is
down sharply. The adverse trade
balance IS averaging more than $40
OOO.0J0 a month At the same time,
tourist expenditures, which have al
ways helped to build up the invisible
balance in favor of the French, are
down. and still declining It is esti-
mated now that fewer than 100000
visitors Will enter the country this year,
compared with more than 1000 900 in
the years before the slump. Expendi-
lures in the prosperous days ran as
high as $4,000 GOO This year they are
not likely TO exceed S12 100000
Federal Treasury reports are also
Disappointing. For the first five months
OF the current fiscal year, revenues are
S6O,0O0,000 below estimates. though
these were made on a conservative
basis expected to cover depression
shrinkage.
All Of these facts indicate that France
VIII be forced very soon to make nu-
merous and drastic economies.
Berlin. - The weeks serious setback
on the stock market was led by Benz
berg and Siemens shares. Weakness
in demand for Siemens stock was due
10 the possibility of passing its divi-
dend. Inability of Cologne and Frank
4O4G " I--tet MAJ 4IIS UOLeS Is III
dlcatlve of the general condition
throughout Germany of state and
communal credit.
Strikes are preventing the lowering Of
wages as provided in the Won Papen
plan. Despite a fair volume of re-
employment, industrial activities are
at the lowest levels though there has
been no further drop in prices.
In spite CT the agreement with Bel
GUM on import quotas. negotiations
with other countries. notably Holland
and Italy, are proving to be most diff
fcult. Italian reprisak through foreign
exchange regulations are a serious blow
to German exports.
LOndOn-British optimism was slight
iy restrained this week, but the busi-
ness tone is still good. Markets were
slack and commodities irregular Re
sumption of work at the textile mills
has stimulated the entire industry. but
there is still a degree OF uncertainty in
the spinning section, where negotia-
tionS-with employers are continuing.
War Loan Conversion.
Final conversion of the war loans,
With demand for only per cent cash
redemption, has cheered the markets,
but there is considerable annoyance
partially removed. BY treasury decree
no foreign loans can be f1oated on the
market and no conversion issues in
volying new cash subscriptions. This
is designed to prevent a rush of new
issues following the long ban during
the period when the government was
carrying out its huge conversion prof.
ect. The first issue after the three
months ban is a conversion of the New
South Wales 10-year 534 per cent
bonds into an Australian commonwealth
issue which will bear only 81 per cent
interest. but which is issued only as a
five-year loan. The market absorbed
the bonds in scarcely more than an
hour. Lever Bros. will attempt the first
industrial conversion when they ask
holders of their per cent first mort
gage debentures to take new per cent
debentureS, at S6, maturing serially
over l5-year period.