Evening star., 1932-08-14
Financial Leaders Concerned
Over Boom in U. S. Stock
Market, However.
GERMAN TRADE SWAYED
BY POLITICAL FACTORS
French Still Losing Gold, With
Bourse Prices Stronger-Indus-
trial Inactivity Increases.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August 13.-Cables and
wireless dispatches to The Business
Week give the following survey of busi-
ness abroad for the week ending today:
London-The general tone in Great
Britain is excellent. Rising commodity
prices, especially the improved position
Of the non-ferrous metals, is stimulating
optimism. The stock market is reacting
closely to Developments in Wall Street.
Financial leaders are mildly anxious
over this development. Until there Is
industrial improvement to back the rise
they are hesitant to accept it as per-
manent. Also, money drawn to Wall
Street reacts unfavorably on the prog
ress of the conversion operation. If the
stock boom in New York is only tenn
porary, London estimates that the
amount the Treasury will need to
redeem that part of the old war loan
which may not be converted will not
exceed 200 millions. If the boom con-
tinues, it is entirely possible that the
Treasury will have to provide short-term
financing up to 600 millions, for revived
American buying Is expected to inaugu-
rate industrial revival in Britain as well
as the United States and send interest
rates to 4 per cent or more. The con-
version offers only 31a per cent.
Gain in Unemployment.
Unemployment at the end OF July
registered a gain for the month Of
nearly IS, 900. Most of this was due to
stoppages in the cotton textile industry.
though there is slackneSs of activity in
the building, coal. engineering and iron
and steel industries. Restricted activity
is fairly well spread over all areas. The
drapery and clothing industries are
feeling the first impulse of early Fall
buying Woolens are not likely to be
affected for a few weeks. Rayon is
active.
Berlin-German politics took a turn
for the worse this week and prevented
the country from sharing in the wave
of business optimism which is spreading
over Europe.
The political situation is tense Con-
versations are taking place in Berlin
between political leaders. A week ago
some compromise between Won Paper
and Hitler, giving the Hitlerites repre-
sentation in the cabinet. was expected.
This week such compromise seems
increasingly improbable. What may
happen If it fails cannot be foreseen
now. Hitler apparently Is losing con-
troll over the more radical element in
his following. Gen. von Schleicher has
already taken the necessary moves to
curb renewed disorders.
Business Is rejecting this political
tension. The Bourse failed consistently
this week to reflect the enthusiasm Of
Wall Street or Of the major European
markets. Trading was dull. with prices
declining gradually. Bonds were es-
pecially irregular.
Industrial activity still shows no i'm
provement, though there is some en-
couragement in the knowledge that
stocks of commodities are very low; that
heavy buying is likely to follow any
substantial sign of recovery.
Paris.-France is still losing gold. An
other 5115 million dollars has left the
country, this time it is believed, going
to Britain. Because this outflow has
continued for three weeks in success
sion, considerable interest attaches to
the trend. Financial France has been
aware for some time that 1t must come
soon.
Stock Boom.
The outward movement of gold
scarcely held the same attention that
the boom in Wall Street has attracted.
Paris Offices of American brokerage
houses report a rush of orders in the
last three weeks There has been q
sympathetic firming of prices on the
Bourse, but volume has not scared ap-
preciably, because at least half of the
professionals (who are sometimes the
only transactors on the exchange) are
ON vacation.
Industrial inactivity is increasing, es-
pecially in the iron and steel industry.
Imports of Welsh coal in the third week
in July reached 141 600 tons. compared
with an average of 100000 tons. This
jump to the British market is due to
the coal strike in Belgium. Ffnanciers
look for reaction on the Belga If the
strike continues for long. Forward dis
counts on the Belga are already at 4
per cent.