Magyar külpolitika, 1930 (11. évfolyam, 1-7. szám)

1930 / 4. szám - The Economic Position of Hungary

September 1930 HUNGÁRIA LLOYD 27 XThe Economic Position of Hungary. July-August 1930. Published by the British and Hungárián Bank Ltd. There was a marked depression to be perceived alsó during the lasl two months in the economic life of Hungary in connection with the eontinued unfavourable economic position of the world. For all line.s of production and trade in Hungary have greatly felt the effect of worse conditions all over wtoch specially showed in generally lower prices and in further difficulties in the raw matéria) markets. Accordingly nothing pointed to a prospective improvement for the next future. Reports have been received from all leading international markets concerning a further fali of employment in industriés, and alsó of smaller bookings, as well as reduction of work in factories. Judging from London accounts it is not likely that the íow poinl in industrial production and trade has been reached there. Production, prices and coal exports feli considerably and the position is the same in iron and steel industriés. Industrial depression eontinued to increase in the U. S. A. and w holesale trade prices feli again. There is no change in the state of things in Germany either and there is still a misproportion between demand and offers in the money markot. Austria hopes for increased chances of production in connection with the Government loan concluded lately. There are evén difficulties in Francé owing to wage strikes and on aceount of several provisions of new social legislature, and these difficulties had a bad effect on exports. It is to be pointed out that the effect of a generál world crisis was so severe that it alsó showed in the Northern European countries and even in Holland. Unemployment rose everywhere. The seasonal improvement in the labour markét had hardly any ultimate effect, for reduoed work in consequence of the lower trend of business paralysed results definitely. The number of unemployed increased to 2.8 millión in Germany as againsl 1.25 millions a year ago. According to records there were 156.407 Government-suported unemployed in Austria at aboul the I5th of August. There were more than 2 millión unemployed in England. The National Unemployment league in the U. S. A. puts the number of unemployed at 6.5 millions. 13% of trade unión workers in Hungary were unemployed in July. Depression. Easy móney. The international economic crisis is showing in Hungary in reduced employment in industriés and alsó in the reduced purchasing capacity of the population. Although the position has improved in connection with the sale of cattle and beasts of burden, as well as with several agricultural by-products, the generál position is mucii worse owing to the low prices for wheat, and the agricultural population observes considerable reserve in regard to new purchases. Again, the reserved attitűdé of the international long-term money markel makes further replacement, as well as up-to-date installations on a la i ge seale in industry and agriculture most difficult, whereas building activity can neither recover. Stocks become smaller and there is less demand for money. Accordingly short-term money continues to be abundant in the markét. The leading Budapest banks are discounting primé commercial bilis at about 6%, and although offers are freely received from abroad, the banks accept almost exclusively only 3 months' offers. Interest rates: Dollars one month 31/4%, 3 months 3/4%. Pounds Sterling one month 35, 8%, three months 3%%. Pengő one month 4!/2%, three months 4%%. Settlements in connection with end-üf-themonth payments in August havé been duly effected. During former years money hardened in August in connection with the financing of crop sales and the higher rates eontinued up to the end of the year. This time money eontinued to be easy just owing to the depressed state in economic life and consequently the demand was proportionatel v moderate. There was no change in the rate of interest. Xegotiations started with a purpose to create a central institution for the issue of mortgage bonds have failed. These negotiations showed confidence of foreign money markets in Hungárián agriculture. The Hungárián securities' markét is dull. No Long Term Credits. The reason for the reserve shown by the longterm money markét is quite clear. For owing to the lower business trend (and specially in consequence of continual fali of prices and less employ-