Evening star., 1932-08-21
ENGLAND ENTHUSED
AS MARKETS SHOW
UPWARD TENDENCY
Success of War Loan Con-
version Plan Aids Busi-
ness Sentiment.
GERMANY PUSHING PLAN
FOR EMPLOYMENT GAIN
Government May Spend $s0,OO0,.
200 in Public Works Program.
Political Fears Subside,
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK. August 2o.-Cables and
wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
London.-All Britain is buoyant over
the results of the huge conversion op-
Grafton which were announced this
week. The operation has not been COM
pleted, but returns for July, first month
after the announcement, have been
tabulated and they assure success for
the plan.
With this assurance that the treas
ury will have to find little more than
fl00,O00,C00 for short-term financing,
with the continued rise OF commodity
prices, and with the continuing inter-
est In stocks at rising prices, the whole
tone of the market has improved. 1t Is
true that the majority of Observers still
feel that the better spirit on the stock
market and the actual burst of trading
both in Wall Street and London is only
flash In the pan, but there Is
healthy minority which really believes
that this time the real turn has come.
1t is, perhaps, significant that the
financial editors are again beginning to
recommend certain shares after long
period Of restraint.
Capital Issues Ban.
Lewis, Ltd, owners of large depart
ment stores in big provincial cities, have
maintained their interim dividend at Is
per cent and state that trading in the
last six months has not been unsatis-
factory. AS their main stores are in
T1ON1 iYo 1lu danraSSnd this n
nouncement has had marked effect
on the business mind.
The official ban on new capital issues
has not yet been removed, and VIII
probably remain effective until the end
of September, when the conversion op-
Grafton will be ended. If the present
feeling of recovery Is not changed by
any untoward event, the certain ap-
pearance of industrial conversions from
high interest to low interest bearing
securities should be reinforced by
number of offers of ordinary capital
offers needed to finance extensions fol-
lowing tariff advantages or to finance
new amalgamations and naturalization
projects held up by the slump.
Berlin--No single development at
tracted more business attention In Ger
many this week than the Hindenberg
rebuke to Adolph Hitler, leader Of the
National Socialist party. which is the
strongest in Germany, but which failed
to return a majority in the Reichstag
elections the last day OF July. Hitlers
appeal for the chancellorship of Ger
many was fatty refused by the aged
President of Germany. Hitler was also
warned that any attempt to gain that
position by a coup d'etat would meet
with the firmest resistance of the gov
ernment. The political horizon is clearer
as a result of this move, though the
ultimate outcome of the fight is still
uncertain.
While all this has been going on, busi-
ness and finance are viewing the situa-
ton without undue alarm, as reflected
in firm and steadily rising stock mar
ket. This feeling is no doubt based on
the belief that, whatever happens, the
present administration is strong enough
to prevent any diletante or demagogic
economic and financial experiment. in
particular in regard to inf1ationist
measures The president of the Reichs-
bank, Dr. Luther, is considered the
safest bulwark and guarantee against
any adventures.
Trade Sentiment Improves.
Business sentiment is improving faster
than the industrial indicators. Declin-
ing production in the heavy industries
has been retarded recently. but, except
for textiles activity in the light indus
tries is still contracting. One Of the
very hopeful developments this week
was the announcement from Berlin
that the government is pushing plans to
get the governmental construction pro-
gram under way as soon as possible.
IJirSorhcru hoe ad
Papen the necessity Of being able to
present to the Reichstag at the end Of
the month a plan for the absorption of
some of the unemployed Details are
still lacking, but it is known that the
government contemplates the expendi-
ture of $80,000,000 on this project with
the aim of employing 250,000 men.