Evening star., 1933-08-06
EMPIRE ISOLATION
HELD S|GN|F|CAN
Chamberlain Stand Is Re.
garded as Indication of
New British Aims.
Special pispatch to The Star.

NEW YORK. August 5.-cAbles and
wireless dispatches to BusineSs Week
give the following survey of business
| abroad for the week ending today:
LONDON-London looks on the
statement by Neville Chamberlain.
which was issued after the Dominion
delegates to the World Economic Con-
ference had remained behind in Lon
don for little meeting Of their own,
as significant for three reasons:
It indicates that the empire has small
| expectation that the whole world will
soon get together again to work out
economic problems.
1t Is logical. therefore. that the en-
pire should go back to its cooperative
policy encouraged at Ottawa but not
yet progressing too we'll.
1t is evident from the statement that
Britain is tied neither to the gold bloc
nor to the dollar -inflationist group. but
the fact that Mr.. Chamberlain insisted
on a policy of easy credit for industrial
expansion seems to give some support
to those particularly the Dominions)
who favor following the Roosevelt in
hation program.
Canada Is Reluctant
Canada was reluctant to the end to
agree to q policy of isolation OF the
sterling bloc. 1t was only after the
British promised to open the London
| market to a new Canadian loan that
| Premier Bennett agreed to accept such
plan, for the time being. 1t Is the
general belief in London that the Cana
dian dollar, despite the agreement. will
| find its level midway between sterling
and the United States dollar. How
| long this sterling independence will be
maintained is doubtful. for there is
still a strong pull from the Bank of
England and Treasury officials toward
gold. All the exporting interests-and
there are many allied with this group
desire an alliance with this group
desire an alliance with the dollars.
The investment market responded
eagerly to the Canadian loan offer, the
5000, ,000-pound issue being oversub-
scribed three times within minute.
The general business tone is still
good. Stock markets are firm. Half
year reports for the railway groups,
despite the heavy fall in gross reve-
nues, show some good results due to
the gigantic savings for the second
successive year. This is considered
promising by the professionals who
foresee big returns If business gets back
to old-time levels.
| Reich Business Dull.
| BERLIN.-The business week has
been quiet and rather dull in Ger
many. Germans were skeptical Of the
results which might be expected from
the World Economic Conference. When
the conference failed to bring about
many concrete. results, business re-
| acted only slightly.
Immediately the conference was over
and the tariff truce ended, Ger
: many raised the tariff on cotton yarn
| by 100 per cent While this offers
protection to a section of German in
| dustry, it hits the British exporter hard,
and even puts the German manufac-
turer of fine textiles in a serious posi-
| ton on the export market. German
| spinners have seized the opportunity
to form a long planned tariff protected
price cartel.
| Under his new absolute dictatorship,
Chancellor Hitler has passed new law
regarding cartels. The Cartel Court is
to come more under the supervision
of the government, but cartels are to
have increased opportunities for pro-
ceeding against those entrepreneurs
whose prices can be considered to con-
stitute unfair competition. The new
law also makes it possible for the
minister of economic affairs to create
compulsory cartels if they can benefit
! business. Until now, the coal and pot
! ash cartels are the only ones which
have coerced memberships.