Evening star., 1932-01-17
Orderly Agreement or Hard
Struggle at Lausanne
to Be Factor.
OTHER NATIONS LOOKING
TO FRANCE TO TAKE LEAD
London Refuses to Be Wholly Pes
slmistic Despite No Real
Improvement.
Special Dispatch to The Star.

0FN~4NA HtopabSll " Inc oLdT.
NEW YORK, January 16.-Cable and
radio dispatches to the Business Week
give the following survey of business
abroad for the week ending today:
Euro2e.-Whether reparations end in
on orderly agreement or after a strug-
gle which could easily precipitate a
series of further crises is major worry
to world business. On France rests
the major decision. Britain is mildly
optimistic over the outcome of pending
conferences; has prospects for better
domestic business. italy wants an end
OF reparatiOns; is industrially less
active. France is changing govern
ments, trying to delay a definite deci-
sion on reparations until after elections,
playing for better bargaining position
abroad, facing rapid industrial decay at
nome. A Bulgarian moratorium is like
!y to be fcllcwed by several measures
IN Greece, JugoSlavia and Austria.
Germany is helpless.
France Not Uneasy.
Paris.-If there is any uneasiness in
Paris, it is due to no fear concerning
reparationS themselves (France intends
to pay her war debts only proportion
ately to reparation receipts. Rather
there Is fear lest once the reparations
checkreln over Germany is relaxed,
Germany VIII attempt other revindica-
tlonS, such the right arm and the re-
turn of the Polish Corridor.
AS yet there has not been time for
the national equipment program to
snow any effect on business conditions.
Unemployment continues to rise with
!aoor restlessnes more evident, especial
~ around Paris. THE just-published
November production index continued
the 2-point monthly drop which has
repeated itself each month since Au-
gust, and which now has reached 115,
compared with 140, the monthly average
in 1880.
The S80,00O,O0O year-end expansion
OF bank note circulation is contracting
very slowly. The Bank Of France. due
TO the generally unfavorable Domestic
situation and to the prospect of sharp
iy reduced activity in 1882, is expected
10 pursue the recent policy repatriation
OF its foreign balances.
London Optimistic.
London.-British business refuses To
be wholly pessimistic despite a lack of
data to show real improvement in the
general situation. In the industrial
Held encouragement is derived from the
increase in trade inquiries. In the
tnapcial field there is cheer in the
better tone on the stock market and
the continued hope that the Lausanne
conference will at least determine con-
dltlons which will prevail for a fixed
tlme as limited as that may be. Rumors
are abroad that the cabinet is in serious
disagreement on its tariff scheme. due 4.
to be announced with the April budget.
Pressure from all sides for protection
IS unrelenting. The iron and steel in
dustry, in particular, is demanding i'm
mediate aid. Treasury officials are
anXlously scanning first reports of the
income tax yield. Not only is the rate
increased this year, and the exemptions
lowered but three-fourths of the years
tax is payable now. More than 1,5O0,-
600 new taxpayers are added by the
lowering exemptions.
During the first nine days of the year,
tax returns totaled nearly $4,000, 900,
which is S32,500,000 more than were
paid in the first nine days last year.
German Industry Worse.
Berlin.-Chancellor Bruenings repair
alton statement is officially interpreted
as Germany's inability to pay in &C
cordance with the BaSle report and not
as any unwillingness on the part of the
Reich. Opinion is strongly opposed to
any short-term prolongation Of the rep
aration moratorium with a siX-month
adjournment of the Lausanne Confer
ence. The money market is remark
ably easy. Nearly 80 per cent of the
Reichsbank's year-end credits were re-
paid in the first week in January. The
general industrial position has further
worsened Unemployment at the year
end stood at 5,60O,000 and is increasing
rapidly. The coal and steel industries
contribute the largest number.