Evening star., 1932-12-11
SCHLE|CHER WINS
FIRM CONFIDENCE
OF REICH INDUSTRY
Business and Labor Leaders
Hopeful That Gains Will
Continue.
FRANCE AVOIDS MOVE
FOR ENGLISH ACCORD
Idea of Strong Franco-British
Action Pushed Aside for Fear
of u. S. Debts Stand.
Special Dispatch to The Star.

NEW YORK, December 10.-Cables
and wireless dispatches to The Business
Week give the following survey of busi-
ness abroad for the week ending today:
BERLIN.-German business had its
finger in the political pudding this
week, so naturally pleased with the re-
suit. The new presidial cabinet under
Won Schleicher meets with almost uni
versal approval among leaders. And
the plan for a political truce by the
Reichstag gives new hopes that recent
recovery plans will continue to operate
through the Winter.
While Won Schleicher's administra-
ton will inevitably be dictatorial IN
character, it should be realized by
those not familiar with his background
that it will surely be more democratic
than the Won Papen regime. Won
Schleicher is not surrounded and in
fluenced by a "baron's clique" as Won
Papen was. On the contrary, he is
known to be on very friendly terms
with trade union leaders without re-
gard to their political orientation, and
the Socialist trade unionist-Leipart-
was one of the first persons he con-
SultGO WIl6u uIBcu W 1OIHl d CdUlllcb.
Expected to Drop Reforms.
OF his policies, all that can be said
now Is speculation based on close OBJ
servation here in Berlin. Certainly he
will drop Won Papen's unfortunate
plans for constitutional reform, which
had no chance whatsoever to be carried
through except by coupe d'etat. He
Is likely to back some moderate credit
expansion policy for financing public
works. but here 1t must be remembered
that DR.. Luther is still at the helm of
the ReichSbank and that he is antag-
onistic to any but the sanest of expert
mentS. The problem of import quotas
probably will be dropped though Ger
mans rather expect some revision OF
the trade treaties with France, Sweden
and Yugoslavia which will allow high
er tariffs on such agricultural products
as lard fruit and lumber Most i'm
portant, he will concentrate on job
providing schemes. 1t is the promise
of this which won or him the whole
hearted support of the trade unions.
Industrially, the increase in produc-
ton, evident for several months, con-
tinues. 1t is so small as to be negligi-
BILE in some industries. In others, it has
become very encouraging. In all, the
picture is generally brighter than in
smost European countries. Both the
heavy and consumers industries report
further small gains this week.
France Is Careful.
PARIS.-A check among few of the
leaders of French business who were
In Paris this week, brought out these
interesting points of view regarding
the all-important war debt contro-
versy.
France and England would like to
avoid the appearance of working too
closely together. The idea of strong
Franco British action is anathema to
the American Congress, and people over
here are aware of it. But Britishers
and Frenchmen know that there is
real reason for close cooperation just
now. France owes the United States
only $19,000,000 in December, but if
the agreement with London that the
French pay the 100000 600 they owe
the British next Spring 1t may be
forgotten by some Americans that the
French owe war debts to both New
York and London, while the British
owe only to New York.
Franc exchange, meanwhile, Is depre-
ciating against the Spanish peseta,
the German mark, the Dutch FORM
the Belgian belga, and-most draSti-
cally-the American dollar. The franc,
in fact, has dropped below the gold
export point against the dollar and it
Is rumored in Paris that ships sailing
at the end of the week will carry gold to
New York.
Restrictions Foreseen.
Against this possibility is 1.-The argu-
ment advanced by the more financially
minded Of those who expressed opin-
ions on the situation that few banks
either French or foreign-would risk
shipping gold just yet because of the
intense feeling against the United
State over the debt question. Not
until there is greater profit in the
transaction is much French gold likely
to leave Paris.
Just here is the most significant spec
ulation land it is from good authority
If the dollar moves further against the
franc, so that 1t becomes more profit
able to ship gold to the United States,
even the Bank of France Is likely to
dc SO. This would stir already ranked
French feelings to the breaking point.
Paris believes that Parliament would
refuse to allow this movement to assume
any significant proportions without
clamping on export restrictions.