Evening star., 1932-02-21
Paris Bourse Continues Re-
markabIe Rally in Face of
Domestic Conditions.
CONFIDENCE RETURNING
TO LONDON MARKETS
Far East Remains Unsettled Al
War Threat Grows-Berlin Has
Poor Trade Balance.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, February 2o.-Cable
and radio dispatches to the Business
week give the following survey Of busi-
ness abroad Tor the week ending today:
The Far East.-Conditions in the Far
| less favorable this week. A disturbing
factor is the situation in Japan. Elec-
tions are due today. Rumors are
spreading that the japanese govern
| ment is running into increased difficulty
In keeping widespread unrest under
control. Toxic, under cover of a bold
'front.' and comparative success in Man
churla, has fairly successfully hidden
an increasingly unfavorable domestic
economic situation. Foreign trade fig
ures for January reveal an unfavorab!e
balance of S23000000 Exports were
s16,OO0,000 below January, 1881, and
imports were up S6,Ooo,OOO The Chi
| nese boycott was the major factor in
| the export decline.
Already running heavy deficit, the
national treasury has had to appro-
pirate another s15,000,000 for the
Shanghai military campaign. With 60
per cent of the country's ships laid up,
ship owners have appealed to the gov
eminent for a fresh subsidy of about
| s7000,O09.
Business in Shanghai until this
| month the most active in China. is
paralyzed. Damage to 100 or more fac
tories In the Chinese area is estimated
at S7o,000,000. Thousands Of Chinese
have been thrown out of work The cost
OF living Is skyrocketing
| Paris Rally Continues.
Paris.-The Paris Bourse has contin-
ued its remarkable rally in the face of
the further steady deterioration of do
meStic business conditions.
| Unemployment is rising relentlessly
Compared with less than 100, 900 at this
times last year, the total now is 1,5Oo,-
600 wholly unemployed and 1,750,000
the part-time workers are included.
Agricultural conditions are relatively
satisfactory. A s20,000.000 French loan
to the Rumanian state monopolies is
rumored. but any Greek loan is def
nitely denied. January trade shows a
o0 per cent reduction in the adverse
trade balance since last June and was
made possible by 40 per cent reduc-
ton In imports compared with only
~ per cent cut in exports. The reduc-
ton In imports reflects the extent to
which the trade restrictions that France
has imposed. and still is steadily ex-
panding, already have taken effect.
But the IA per cent drop in French ex-
ports between December and January
instances the repercuSsion of similar
restrictions taken throughout Europe.
London-Many factors are operating
to increase returning confidence. Chief
among them Is the Anglo-French repa-
rat1ons conference agreement, the pros
pect OF lower taxation, better trade re-
| turns and favorable reconstruction de-
Velopments in the United States. Stock
markets opened the week with spectac-
ular gains, but so far the reaction only
has caused profit taking and bear COW
ering.
The tariff bill progress has been
greeted with general approval, but there
IS criticism of inclusion in the free list
| OF certain commodities; for example.
| hemp and woodpulp. Empire hemp pro-
ducerS are anxious to secure the Cana
dian market at the Ottawa parley next
Summer. Extreme protectionists are
dissatisfied with the low level and mar
row gauge Of duties, and are waiting
personnel Of the Tariff Committee. jan
uary trade reflects contraction of i'm
ports due to the abnormal duties. No
settlement Of the textile strike is irnni-
nent, though there Is a tendency among
some OF the workers to return, and
among many to consider more favorably
the demands Of employers for adoption
| OF the "more-looms" system.
German Balance Falls.
| Berlin.-The weeks outstanding event
Is the striking deterioration in the trade
balance. January exports dropped %
per cent, while the export surplus de-
clined from $59,00O,0O0 in December to
$24,0O0,000 in January. with losses
heaviest in sales to England and Scan
dinavia.
| This adverse trade development i'm
plies that there will soon be a further
strained foreign exchange situation, and
stresses the immediate necessity of
tightening of the existing, but ine1ec-
tive, regulations. The uifavorable de-
velopment Of the trade balance also
augurs attempts at further curbing of
imports either by tariffs or stricter
handling of exchange purchase per-
mits. The money market is easy, with
strong demand for commercial bills,
permitting the Reichsbank to unload on
the market 20 per cent Of its portfolio
since the year end.