Evening star., 1933-09-17
BUS|NESSRECOVERY
in GERMANY WAITS
REAL BUYING WAVE
Declines in Foreign Orders
Also Disturbing Executives
in Industrial Plants.
LONDON WATCHES PARIS
ATTITUDE TOWARD GOLD
British Commodity and Stock
Market Prices Firm-Steel
Outlook Is Brighter.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 16.-Cable.
and wireless dispatches to BuSines.
Week give the following survey of busi-
ness abroad for the week ending today
Germany's recovery program has rur
into the same difficulties the programs
of other countries have experienced
There have been some industrial gains
during the Summer. but these are taper.
ing off now and, small as they were
they seem to have outstripped any re-
covery in purchasing power. This makes
the outlook for the Fall not too good
Continuing declines in foreign orders
are also disturbing executives in the
manufacturing industries.
The securities slump has continued
this week, but for the first time in a
good many months there are signs that
the banks are coming to the rescue OF
the market. So far they have hao
small effect and it is generally doubted
if they command sufficient funds to end
the slump which has by now reached
genuinely alarming proportions. The
share index on the Berlin BoerSe
dropped from "a in May to 6s on Sep
tember 6.
Germany Worried Over Tariff.
A good deal Of attention has been
centered all week in the opening meet
ings of the commission of Is which Is
investigating the effectiveness Of the
German banking system. The para
mount question in the whole investi-
CATION is whether or not credit. and
possibly all of the banks, should be
nationalized. DR.. Schacht, head Of the
Reichsbank, and director Of the in
vestigation. made this significant state
ment at one of the early sessions
If this investigation should come
to the conclusion that private banking
should not be excluded in principle
but that the influence of the govern
ment could not be dispensed with
either. then it will be necessary to de-
lineate the borders between the two
factors" While most Germans do not
will be undertaken Immediately. they
do expect that it will ultimately de-
velop under Nazi policy
Germans are genuinely concerned
over the formal denunciation Of the
tariff truce by Holland. Denmark and
Ireland. for it is interpreted as mean
ing there will be a fresh wave Of tariff
increases. which will further injure
Germany's chances for recovery.
London Watches Gold Changes.
Commodities continue steady in
Britain this week: trade signs are good
stock markets are Unexpectedly quiet.
but prices are firm The only anxieties
are the success of the third phase of the
Roosevelt experiment in the United
States, the menacing situation in Gen.
trail Europe, and finally the question
whether France will abandon the gold
standard. and when. Soundest opinion
there will be no surprise if the grow
ing budget deficit. when it is taken up
by Parliament next month. will force
the hand of the French. Meanwhile.
the fluctuations of the pound against
the gold currencies are watched
anxiously The exchange equalization
fund is no longer operative. leaving
foreign exchanges sensitive.
Midyear dividends of the great gro
Gerry and tobacco companies are smaller
and indicate a lean half year This
has disturbed the share market. though
the city does not expect the reaction
to last for long. since the directorates
were simply playing safe until it is
more evident how substantial the re-
cent recovery is.
Steel Markets Improve.
One of the most significant signs OF
optimism in Britain is the renewal of
confidence in the iron and steel mar
kets. Business has been well main
tanned through the quietest season of
the year, competition from the con-
tinent has slackened. and British pro-
ducers are now experiencing a steady
demand with consumers buying for
ward
Among other general signs of i'm
provement are: Improving rail returns,
reopening of the railway dock at Swan
sea. increased orders for the Welsh tin
plate trade. orders in August for seven
new vessels. rekindling of three more
blast furnaces. announcement of new
plants to be erected by northern iron
and steel firms. an order secured by
Wales for 10000 tons of coal for Spain.
an order secured by British producers
for more than 100000 worth of gal
vanized iron sheets for Argentina.