Evening star., 1932-09-04
Refunds to Industry Are Ex.
pected to Quicken Activity
| in Many Lines.
BRITAIN is CONCERNED
OVER TEXTILE WALKOUT
Government May Intervene in
Wage Dispute-Trade Interests r
Hope for Early Settlement.
Special Dispatch to The s.sr.

Special Dispatch to The star
NEW YORK. September s.-Cab,es
and wireless dispatches to the Business
Week give the following survey Of bust.
ness abroad for the week ending today:
Berlin.-Conservative opinion in Ber-
lin anticipates now that the country is
going to be ruled, until Spring at least,
by Won Papen dictatorial regime.
With this in mind. a great deal OF
interest has attached from the first to
! the reconstruction plan which was an
nounced by the Government early in
the week. While there Is still much
to be explained and interpreted, the
essentials of the plan are these:
For the next ~ months the govern
ment will refund to industry the full
amount of the transportation tax. so
per cent Of the turnover tax, 40 per cent
OF the trade tax and Is per cent OF
the real estate tax. This refund will
take the form Of tax-payment certifi-
Gates which will bear per cent interest
| and which are discountable at the
Reichsbank. and which can be used to
pay taxes for the years between 1894
| and 1898. More than $3.50 900 900 are
estimated to be involved In this plan,
| which is virtually subsidy to business.
Premium Payments.
A second part Of the plan provides
| for straight premiums to be paid 10
companies which can show increased
employment. More than $4,000. 900
have been allotted to this fund. Since
less than sl00 is paid per re-employed
| person. If the fund is completely used,
more than 100000 job.ess Germans
Should find new employment this Win.
| ter.
Germars are not yet wholly familiar
with the plan, but it is already being
favorably received in the business COM
munity, but not by the Nazi party.
Stocks SCARED Immediately after the
announcement. The Berlin B-erse ex-
| perienced something Of the same sort
OF boom which followed the announce
ment of the Hoover moratorium more
| than year ago. Business generally Is
! interpreting the move as evidence that
/ the government thinks the bottom Of
/ the depression has been reached. 1t Is
adopting something Of the washington
strategy Of borrowing on the anticipated
urturn Of business
Londcn-All Britain is more con-
| cerned this week over the textile strike
than over any other DEVELOPMENT affect
ing business. More than 10000 labor
ers in the weavers' section of the vast
Lancashire industry are out now. and
spinners will vote in another 10 days on
a 10 per cent wage reduction. II they
should refuse to accept the cut, it would
bring complete tie-up in the industry
| and raise the total number of em-
ployes affected to 100000. The eitua-
ton is grim
| The strike has been brewing for
months. has been inevitable for nearly
six weeks. In one Of the most import
ant, but most radical, of the districts In
Lancashire, union weavers struck last
Spring over wages and hours. They
( were replaced by rion-union men
nearly 5000 strong. Since that time,
| employers and workers have come
nearer an agreement on wages but the
unions refuse to complete negotiations
and return to work unless the 5000
members who have been displaced are
( reinstated This is what finally pre-
cipitated the strike which threatens
now to spread to the entire industry.
Unfortunate for industry.
! Coming at a time when rising CON-
modify prices had reused hopes In
Britain that the textile industry might
revive, and at a time when Japan Is
again threatened in the great China
market, the strike is most unfortunate
from the industry's point of view. Labor
sympathizers look at it as just one more
/ evidence of the solidarity of British
workers. Government Intervention will
probably be necessary to break the dead
lock between employers and workers.
Unless action is prompt, it is likely that
| the unrest will spread to other unions.
Trade interests are hoping for an early
settlement of the dispute.
| Despite the seriousness Of the textile
situation, business Is not depressed.
Stocks are strong again after week end
prof1t-takirg Bond also are buoyaflt.
Rubber shares were the most spectacu-
lar in early-in-the-week increases; tex
tiles, naturally were dull