Evening star., 1933-03-05
FOREIGN INDUSTRY
KEEPS EYE ON j. s.
BANKING SITUATION
Germans Also Concerned
Over Excesses in Closing Po.
IiticaI Campaign.
DOLLAR DECLINE CAUSES
UNEASINESS AT PARIS
British Equalization Fund Used to
Prevent Rapid Rise in the
Pound Sterling.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 4-Cables and
wireless dispatches TO the Business
Week give the following survey Of busi-
ness abroad for the week ending today:
Berlin.-Germany is almost at the
end of one of the roughest political
campaigns that the country has ever
witnessed. The burning of the home Of
the RelchStag this week gave Hitler the
opportunity to declare the most drastic
open warfare on the Communists. 1t
also gave him an opportunity to silence
mCSt effectively the final campaign ef
forts Of his opponents. Obviously, the
government to be in charge after Sun
days elections will be a Hitler govern
ment. II remains to be seen whether
or not they will win 81 per cent of
the votes cast at the polls or whether
they will need to use other methods to
remain in power.
Industry Remains Quiet.
Business, naturally, is unsettled By
all the campaign exceSSes. though Sc
curity markets have remained remark
ably steady through it all. AS matter
Of fact. there was more financial con-
States banks this week than over the
outlook in Germany.
Industrial production turned stagnant
during the week, except for the auto
mobile industry. which IS busy filling
orders booked at the unusually success
full Berlin show. Scrap iron prices are
up on special demand from Italy and
Japan. but the coal and iron and steel
industries are generally inactive. Cot
ton and rayon textiles are less active
| this week, but the wCo.en industry IS
buSy.
Berlin is watching the Soviet credit
situation with some concern. 1t is in
| creasingly evident that the Soviets, de-
| spite every effort which has been made
to keep up with the maturities due
! Germany this year. are under a strain.
/ The German government has quietly
! been urging banks to advance the So
viets S35 900 900 against future imports
of Russian gold, oil, timber. furs and
manganese. 1t is generally believed
that Germany will need to make some
concessions if the Soviets are to avoid
default. but it is also believed that Ger
mans are willing to do this to hold
Soviet friendship.
Paris.-France has been concerned
| during the latter part of the week over
| the fresh decline of dollar exchange.
/ Quotations have once more dropped 10
I the geld export point and such banks
as the Guaranty Trust Co. are sWarlped
with demands for the transfer OF
dollars into other currencles. II Is
widely rumored that the Bank OF
| France is cooperating in the aosorp-
ton of dollars. It is admitted. also in
| informed quarters that forward market
| operations have narrowed down so
drastically that even moderate pressure
produces an exaggerated effect on
futures rates.
While the current rush TO sell dollars
may be only one more attack on the
! dollar by a handful CT professional
! speculatorS, it is true that banking
! authorities have become somewhat
alarmed over the prolonged American
banking crisis. There is constant dread
| lest the United States abandon the
gold standard which would mean that
| France would be forced to do the same
thing almost Immediately. Preoccupa-
ton over these two problems has caused
the serious developments in the Ger
man situation to go more or less un-
| noticed.
! London.-Englapd remains dominated
by the menace of financial trouble in
the United States. The closing of the
Michigan banks followed hard upon a
particularly pessimistic dispatch from
! the Washington correspondent Of the
! London) Times. and this conjunction
of prophesy and event thoroughly un-
settled transatlantic confidence.
| Far East Hostilities.
The pound sterling might have risen
] dangerously had it not been for the
prompt Intervention Of the exchange
equalization fund, the efforts of which
were followed by fortunate selling Of
British pounds by American banks
anxious to rush their resources back
into home currency.
In addition to the fears of trouble
in America, the war cloud in the Far
East has remained an unsettling factor.
and the prospects of serious civil
trouble in Germany have also affected
both business and stock market deal
ings And, of course. there is still
tension in Central Europe following the
Austrian. arms incident and the recur-
ring ru1nor that Germany, Hungary
and italy have entered a secret alliance