Evening star., 1933-02-26
GERMAN ECONOMIC
RECOVERY DELAYED
BY POLITICAL WAR
Iron and Steel Stocks Show
Gains on Talk of Re-
Arming Nation.
FRENCH INDUSTRY LAGS
AS TAX PROTESTS GROW
Paris Fails to Get Gold From U. S.,
Despite Recent Weakness
of the Dollar.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, February 25.-Cables
and wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
Berlin-"I am firmly resolved, to-
gether with my allies, under no circum-
stances to let the German people return
to Marxist regime. I know how 20
preserve what we have attained"
These words from Adolf Hitler, added
to the ruthless methods which his party
is pursuing in the political campaign,
have cast an ominouS shadow over Ger
many. The opposition press has been
muzzled. Political murders are on the
increase. More and more Hitlerites
and fewer and fewer Nationalists are
being placed in key positions throughout
the country. All political meetings are
being policed by the Nazi storm troops.
Stock Trading Active.
In Berlin it is thought that Hitler
and his party have about even chances
to win majority in the elections on
March S. Among few in Germany,
and an increasing number of informed
outsiders, the feeling is growing that
Hitler will rule whether he is elected
or not. All the disorder that may ac-
company the election is paralyZing the
economic recovery which got its start
under the Won Papen government last
fall
Despite the political uncertainty,
bonds and stocks are establishing new
highs on the Berlin Stock Exchange.
Shares of iron and steel companies,
u,I,i until 70
arm Germany, and coal companies are
favored.
Iron and steel production was up
sharply during January, and export
prices for steel jumped % per cent from
the January low following the an
nouncement that the European steel
cartel is likely to be continued. Con-
sumption industries, on the other hand,
have been upset by the political tur-
MOL. Even the machine tool industry
has been retarded
Two big German banks have
nounced higher dividends than VIC
paid last year. The Berliner Hande
gesellschaft and the Reichskreditgesc
schaft will pay 5 per cent, as again.
per cent for 1881.
The European steel export market
has already discounted the improved
outlook for the renewal of the steel
cartel by an all-around advance Of ex-
port quotations.
Paris-Frenchmen generally, were
mere impressed by the tax strikers all
around them this week than by any
other development affecting business.
Retail stores were closed in most cities
for at least half day. Postal author
tiles refused to work for an hour one
morning, thereby delaying the mail.
Schools closed for an hour at midday.
In Paris, executives probably paid
more attention to the banking diff
culties in the United States and to the
political crisis in Germany than to
the tax wrangling, which is, after all,
to be expected at this time of year.
United States gold failed to flow to
Paris, however. despite the weakness of
the dollar. The outlook in France is
none too good. Industry is slack; en-
ployment down; and the budget is not
yet balanced
Far East-After l8 months Of fight
ing in the Far East, 1t is likely that
war will be formally declared between
China and Japan as result of the
japanese decision to push on into
Jehol, large Chinese province just west
OF the already conquered Manchukuo
War Material Purchases.
Toxic has recalled her representa-
tive to the League of Nations The
japanese have been accumulating war
essentials" for months. Included i'm
portantly are cotton from the United
States, wool frcm Australia, wheat and
lumber from Canada, oil from the
Soviets, scrap iron from Great Britain
and the United States. A large dele
cation of Japanese business men are
reported to be in New York now ne
gotiating for hurry-up orders CT ma
chine tools, in case the United States
land other nations) decides later to
set up an embargo on shipments of
arms. Early in January the Busi-
ness Week reported a number of ma
chine tool orders which had been
placed in this country by the japanese.
Shares en- the Toxic Stock Exchange
tobogganed when the announcement
was made that Japan might withdraw
from the League. They recovered
some strength later. Both japanese
and Chinese bonds are down on for
eign markets. War risk insurance is
being sold on shipments to the Orient.