OUTLOOK DARKER

Evening Post, Volume CXV, Issue 48, 27 February 1933, Page 7

OUTLOOK DARKER

EVIDENCE OF RECOVERS

NOT NOW SO MANIFEST-

INTERNATIONAL TENSION

STAGNATION OF TRADE

United Press Association—By Electric Telf graph—Copyright. (Received February 27,, 10 a.m.) LONDON, February 26. The evidences of recovery noted at the beginning of the year are disappearing owing to the international tension. Railway traffic l receipts are declining again, and electrical v power consumption is below December figures. Reports of home industries show, an absence of enterprise. The export coal trade is busy with out- ■ standing orders," but there is little fresh business, so a further setback is probable. The textile industries are modifying their New Year optimism as spring orders are slow in coming. International trade is equally stagnant. The best news is the reconstruction of the European steel' cartel to end the ruinous price-cut-ting of the past few -. years. This has already resulted in the hardening ok prices. Short-term money continues slow in London, imposing on the authorities the necessity of • continuing heavy gold purchases. . Sir Walter Layton, the economist, '■'■ emphasises that most of this money is coming from America and will be repatriated when the • American situation improves. If the Government pays the June instalment of the war debt, it -will not have funds to-repay the short-term money.' England cannot afford to risk paying her debt from resources lent ,tp her. This would lead to a situation analogous to the German bankruptcy in 1931, and precipitate a fresh world crisis. . ; ■• .