Evening star., 1932-07-10
British Business Men Hail
Success of War Loan Con-
version Plan.
FRENCH INDUSTRY LAGS
AS EXPORTS DECREASE
Germans Turn Their Attention to
Proposals for Writing Down Pri-
vate Debts Abroad.
Special Dispatch to The star.

Special Dispatch to The Star
NEW YORK, July e.-Cables and
wireless dispatches to the Business
week give the following survey of busi-
ness abroad for the week ended today:
LOndOn.-British business is iubilant
over the governments bold scheme TO
convert the $1,000 000, 900 of 5 per cent
war loan bonds into new 3i2 per cent
issue. Everything now points to sue
cess for the plan. All week there has
been boom in gilt-edged securities.
which has already overfowed into the
Industrial field
the Bank Of Englands reduction in the
rediscount rate from 2J2 per cent to 2
per cent, the lowest in IS years.
Stock Markets Improve.
Results of the operation will mean
an annual reduction of nearly S100, ,000,-
600 in interest which the government
must pay on its funded debt, an easing
OF money rates on all financial markets.
forced flow of funds into long neglect
ed industrial shares, stimulus to Brit
ish business. The British have conf
dence, too, that they are taking a neces-
sary move toward adjusting credit costs
with current commodity values
Stock markets have been cheerful all
week. Strong buying, which immediate
ly followed the announcement, pushed
gilt-edged securities up with a bound
and carried almost all stocks higher.
Later in the week prices eaSed on profit
taking and the weakening of sterling
exchange.
Scarcely less important to the Brit
tsh is the Lausanne settlement of rep
arations. Some such settlement was
increasingly desired as the first full op-
timism for immediate results from the
empire meeting at Ottawa are waning.
London Is beginning to realize that
Canada and Australia, in particular, are
not ready to prejudice their own sec
ondary industries by abandoning all
protection against British competition.
The British. therefore, are inclining to
hope more for reduction Of imperial
duties than an increase in duties on
non-empire goods.
Paris.-French business is utterly
slack. The Bourse was active ane
cheerful on reports from Lausanne
Prices were generally up. The British
war loan conversion operation had q
favorable effect.
Industry is discouragingIy less active.
Exports of iron and steel are declining
steadily. Coal miners are working only
part time. The textile industry is work
ing to fill only immediate demands, ex-
cept for the rayon section, which is
showing more cheerful tone in recent
weeks. More French ships are idle now
than at any time since 1922.
BerIin.-German were encouraged by
the strong, optimistic undertone on Sc
curities markets this week. ENCOURAGING
reports from Lausanne despite lot of
unfavorable domestic press comment)
and the prospect of reduced interest
rates on the "standstill' debts were
major influencing factors.
Reich Prevents Defaults.
Both stock and bond prices advanced
with brisk selling on the Bourse. Vol
ume was large. Bond prices are holding
especially well. Many municipal in
terest defaults have been prevented only
by prompt aid from the Reich.
Adjustment of the reparations and
short-term debts questions are likely to
progress through organization channels
already set up. Significant now is the
discussion in Germany concerning the
necessity for writing down private debts
abroad to correspond with no decline in
the commodity price level In world mar
kets. The influential Frankfurter Zei-
tung. discussing this imminent posi-
bility. says that reduction in capital
values of private debts due abroad may
be preferred by creditors to restrictions
on transfer The prostration of world
trade and the small surplus of German
exports in April and May are especially
important factors which tend to hasten
a decision on the subject"