Evening star., 1932-09-11
Government Pushes $780,
600, 900 Program to Sub
sidize Business Recovery.
TAX REFUNDS WILL AID
IN TRADE DEVELOPMENT
French Are Considering Adoption
Of Loan Conversion Policy Simi-
lar TO That of England.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, September 1o-Cables
and wireless dispatches to the Busi-
ness Week give the following survey
OF business abroad for the week ending
today:
Berlin.-"No longer will we stand for
being treated like a second-clasS ma
tion." This declaration from Gen. Won
Schleicher, real authority in the pres
| ent German government, epitomizes
the new spirit that is taking hold of
Germany.
Though tied to a discussion of Ger
| many'S demand for equality of arma-
| mentS, the statement applies equally to
| the entire economic program which the
| Reich is initiating
Accomplishments in Germany's re-
contraction program to date included
vast S720. 100000 scheme for subsidiz-
ing industry and employment, and ex-
tending previously planned public
works for. the Winnter. Instead of re-
| sorting to a loan (Which would be
| impossible internally or externally, the
government is financing business up
| turn through a system of tax refund
certificates. These will probably not
exceed $520,00o 900 and will be made
out to industries as a refund on a
fixed percentage of taxes paid in the
coming fiscal year
Sentiment Improved.
With these certificates which will
be rediScounted by the Reichsbank, in
dustry will be enabled to retool and
remodel, to finance first incoming
orders, or to pay taxes between 1884
and 1885, Probably the certificates will
be passed along a number of times
| before eventually being offered as pay
ment of further taxes or presented to
the Reichsbank for rediscount.
German sentiment is definitely on the
mend. Won Papen's stiff policies are
giving courage to business. Simul-
taneously, world securities and COM
| moditieS markets are improving. In
| ternal reconstruction Is becoming gen.
eral. Germany is stepping out boldly
| to reconstruct her finances and revive
| her industry 1t may be possible at
| the same time to bring about the old
| status of a first-class power free Of
| foreign domination.
Paris.-There are few favorable eco
| nomic developments in France, and a
| decided improvement in sentiment. The
| BourSe has been unusually active for
| several weeks. and public interest in Sc
| curities is spreading. A part Of this new
interest is due to the steady improve
ment in world commodities prices, a
part to more optimistic sentiment in
other major capitals. but most to the
promise of huge conversion operation
likely to come in the next few weeks.
Industrial activity is admittedly low. In
the leather-dreSSing business and in the
shoe industry, however, factories are
again working full time, and the Rou-
baix- -Tourcoing textile mills received
more orders last week than during the
previous two months. Hosiery mills have
increased working hours from 81 to SO.
Slight improvement is reported also in
the paper, cardboard box, electricity and
building industries around Paris. Car
loadings are above previous lows, and
employment has improved slightly.
The success of London's huge CONVEX
sion operation has encouraged Paris to
undertake a similar move, and industry
and banking are urging that it be in
itiated soon.
Conversion Possibility.
In this operation it is expected that
the Government will plan to convert
more than $4,000, ,000, 900 of outstanding
obligations which are now carrying from
to per cent interest 1t is uncertain
what the rate will be on the new Treas
'ury issues. Most Paris authorities are
inclined to expect AZ per cent, though
few believe the Government will at
tempt to issue the new offerings at 31A
per cent. the same rate to which Britain
converted its outstanding indebtedness.
The only hope that the negotiations
between representatives of the two coun-
tries will get anywhere rests in the pos
ktl@
of making important concessions. In
that case, it will be up to the United
States to make some move next,