Evening star., 1933-03-19
STABILIZED DOLLAR
DESIRED IN French
|. FINANCIAL CIRCLES
Bankers Believe Short Posi-
tion Will Maintain Value
of y. S. Money.
GERMAN MARKETS GAIN
AFTER HITLER VICTORY
British Report Increase in Steel
Trade and Reduction in Un-
employment.
Special Dispatch to The Star.

OpcCldl DlSpdtCA 10 Inc star.
NEW YORK, March 18-Cables and
Week give the following survey of busi-
ness abroad for the week ending today.
Parfs.-Following the recovery of dol
lar quotations in Paris when foreign
exchange dealings were resumed. the
rate tended to weaken and dropped as
low as 25.20. This brought all sorts of
rumors, but none is yet considered a
logical explanation for the trend. Most
bankers are inclined to believe the short
position is sufficient under ordinary cir
cumstances to maintain the dollar be-
tween the old gold points, but there is
stlll the bear belief that the dollar is
vulnerable.
Meanwhile there is no evidence of
any important covering. Weakness is
rehected In the relapses on quotations
Of Swiss francs, Dutch forms and
Polish Lofty gold standard currencies).
ihe lire has been maintained at q
stable level only through the interven-
tlon OF the Italian government. Until
the dollar Is stabilized there will con-
tlnue to be extreme nervousness here.
France is the only remaining strong
hold Of the gold standard. Other gold
standard curTencies are under pressure.
IVuuCdI lnuuenceS.
International developments of a most
disconcerting nature have come I'D dur
Ing the week. The most alarming is the
growing Germano- Italian rapproche-
ment. The fact that neither Hitler nor
Mussolini would agree to attend the
Disarmament Conference this week was
most significant. The United States is
preoccupied with domestic problems.
This left only Britain to come to the
rescue of the French in upholding the
status quo on the continent, an Alto
gether serious problem just now.
One of the most inf1ammatory moves
was the occupation of the Rhinelend
region by Nazls. A year ago this would
nave caused a furry in international
circles. This week it stirred the French,
Dut outwardly there was only a purely
philosophical debate as to whether the
troops should be viewed as soldiers or
as supplementary police. France chose
to accept them as police and closed the
matter for the time being with no
further comment
beriin.-At no time in German his
tory up to this week has the central
government had unified and complete
control OF all the state governments.
Hitler has brought this to pass by en-
forced local elections and taking over
OF the local police under the supervi-
sion OF prominent Nazi leaders. 1t is
complete victory for the Nazis. 1t
remains now for them to carry out the
promises of social relief voiced during
the campaign.
The stock markets are evidently of
the oplr'o1 that Hitler in the saddle is
not goin, % be danger to Germanys
stability. Stock prices scared during
the week le to general optimism and
TO buying wave among Nazis, who be-
neve that prosperity will soon be q mat
ter of course.
Nazi excesses have been partly curbed
since. the Hitler forces are in control
OF the police and the leader requested
that disorder cease. A rowdy boycott
OF department and chain stores. includ-
ing the 81 Woolworth units, has been
discouraged by the government Plans
to curb the activities of these big dis
tr1buting units are focusing on new and
higher taxes on units in a chain.
British More Optimistic.
Germany, through the Rechsbank,
mas restored dollar quotations to par,
indicating that the American banking
holiday and gold embargo incident is
closed as far as Germany Is concerned.
London.-The immediate business "a
ture looked brighter this week as she
American banking holiday came to an
end without the dollar being seriously
upset when foreign exchange was again
quoted.
Reports from the steel industry for
the month of February were released
during the week and showed increased
activity. Unemployment is down en-
couragingly. Capital writedowns were
stimulated this week when the five
leading British building societies re-
duced mortgage interest rates y per
cent to minimum of 51a per cent. Sir
Edward Grove, said to be one of the
originators of tn Buy British" cam
paign reflected growing feeling when
he declared this week: II think prob
ably the Buy British campaign has
now gone far enough. We want to buy
American goods and we want America
to buy British. I feel it rests upon
Americans and British to bring the
world back to sanity and trust that
very soon we will see restoration to more
normal trade relations between these
two countries"