Evening star., 1933-07-02
FOREIGN MARKETS
WAIVER AS MONEY
| DEBATE CONTINUES
Lack of Results at the Lon.
don ParIey influences
-
Business UnfavorabIy.
GERMANS MAKE EFFORT
FOR DEBT SETTLEMENT
Britain Concerned Over Possible
Abandonment of Gold Standard !
by European Countries.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, July Gables and
wireless dispatches to Business Week
give the following survey of business
abroad for the week ending today:
Paris-For months there has been
talk of the possible necessity of forming
a coalition government in France to
cope with an economic situation in
creasingly complex. This week, follow
ing futile efforts in London to win
either British or American agreement
to make currency stabilization the first
Conference, and following the attack On
the Dutch guilder-the most important
of the remaining gold standard cur
rencies except the franc-Parliament
became outspoken in its demands that
the government be invested with "plein
pouvoir," which is equivalent to an
emergency dictatorship. Should the
Dutch gui1der and the Swiss franc
last currencies to cling to their pre-war
exchange rate-abandon gold. there
would Immediately be tremendous pres
sure on the franc. An emergency"
situation would no doubt develop.
Credits Restricted.
France has had q bad case of the
filters. The budget is not balanced and
the deficit is likely to increase. The
trade balance is seriously adverse. 1t is
almost impossible to acquire new inter-
nal credits. Large as the gold supply
Is, France could not long stand the
drain Of the entire financial world.
The most important development in
has been passed. and which becomes
effective July Is. 1t is designed to
protect the. French farmer, make
France self-suficient in the production
Of this important commodity. Mini
mum price of wheat after the middle
of next month is set at lis francs
(about $1.50) bushel. It has also
been suggested that the government
provide the required subsidy for the
immediate export Of 18,000. 900 bushels
Of carryover from last years heavy
crop.
Berlin.-The Hitler dictatorship In
Germany is more complete this week
than it has ever been. With the resig-
nation of DR.. Hugenberg the last ef-
fective political opposition to the Nazis
is removed from the cabinet, as well as
the last brake to the radical aims OF
Na1 economic policy. All political
parties are now subcrdinated to the
Nazi-controlled state government. All
labor and employer associations have
been coerced into the Reich Corpora
ton of Industry, which IS copied wholly
from the Mussolini model. Church and
press are already under the thumb OF
"the leader" The most anti-capitalist
features of the Hitler program, which
have not been pushed SO long as the
capitalist minded DR.. Hugenberg was
in the cabinet, are likely to be stressed
in the next few months.
Nothing definite has yet been an
nounced In Berlin regarding the con-
ference in London between DR.. Schacht
and Germany's creditors, but rumors
persist that q new plan is evolving for
the transfer Of one-third Of the amounts
due in interest en- the long-term debts
during the second half of this year. the
balance to be deposited in Germany
until foreign exchange becomes avail
able
London-Britain had its own views
on the World Economic Conference
this week, and they were pessimistic.
Gloom, which was Systematically Gre
ated during the first week Of the con-
ference, has been augmented In the
| last few days by the probability that
Holland will be forced of the gold
standard. Almost inevitably Belgium
and Switzerland would be forced to fol-
low, and then france WOulo no longer
be able to stand alone. This situation,
in the midst of conference called to
stabilize all currencies, Is regarded as
the crowning irony Of q situation which
most Britishers think is already futile.
Sterilization Effort.
During the first week of the World
Conference London's other little" con.
ferences attracted great interest among
those aware of their Importance. The
committee of banking and treasury ex-
perts made slow progress toward a re-
stabilization agreement. No one is sure
just all that was accomplished in the
closed meetings, but there Is common
talk in the city since the meeting that
the probable parity for the pound ster-
ling lies somewhere between $3.50 and
$4.84 (almost the old parity. This is
in striking contrast to the figure long
argued, but always between $3.50
and 81.
Business is generally steady. Prices
are firm On the stock exchanges, though
volume has been smaller this week.
The commodity rise-especially for rub
Der. tin, copper and wheat-has had its
effect on the stock market. Unemploy-
ment is declining, particularly in the
Industrial Lancashire and Shef1elc re-
gions. There is steady how Of an
vestment money into industrial shares,
and new issues for sound enterprises
are readily subscribed.