Evening star., 1933-10-22
GERMANY REPORTS
INCREASED OUTPUT
IN MANUF FACTURES
Gain in Exports Results in
Favorable Trade Balance
of 95 Million Marks.
PARIS BACKS LEADERS
AFTER HITLER SHOCK
England's Security Markets and
Business Take Reports From
Geneva Calmly.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 21-Cables
and wireless dispatches to Business
Week give the following survey Of busi-
ness abroad for the week ending today:
Following the first excitement over
the Hitler announcement in Berlin that
Germany would withdraw from the
Disarmament Conference and from the
League Of Nations II not granted equal.
to its previous calm. Bonds are again
continuing their steady advance. Stocks
are steady. There is no apparent un-
easiness over the immediate future:
One especially encouraging develop
ment during the week was the report
of increasing output in the capital
goods industries in September. Do
mestic machinery orders alone were 68
per cent above the demand at this time
last year. There was slight setback
in September in the cotton goods IN
dustry, and for other conSumabies.
Foreign trade for September Is also
encouraging. There was a 6 per cent
decline in imports, which Is contrary 10
the usual seasonal trend. Exports, sur
prisingly enough, rose per cent, re.
sulting in a favorable trade balance OF
95, 100000 marks.
In appraising the outlook. it is i'm
portant to recollect the threat Of Ger
MANY a year ago to withdraw from the
conference unless the Reich was granted
equal treatment with the other powers.
The success which that move had per-
haps led to the belief that the present
drastic action was necessary II Germany
was to win factual equality to replace
vague promise.
League Move Cleverly Timed.
The move was cleverly timed. De-
spite the seeming isolation Of Germany
lust now, no smart observer Is unaware
of the dissentions among the other I'M
portant partners in the Versailles treaty,
or of their absorption IN domestic prob
lens, the budget in France. the British
trade controversy with the Japanese.
the inherent Italian jealousy OF French
military supremacy, or Of the reluctance
of any Of the countries to get into mill
tary entanglements just now, and nnaly
of the aloofness of the United States IN
all European political matters.
Apart from the realization OF the
madness of any military adventure, Ger
man leaders are aware that their pro-
gram for economic reconstruction would
be shattered in any division of effort to
support a campaign. 1t should also not
be forgotten that the present govern
ment's strong control OF public opinion
through absolute control Of the radio
and the press enables it to bargain and
make concessions to foreign politics
which we're impossible with any Of the
predecessors who were dependent on the
parliamentary system.
The door to negotiations was care
fully not closed by the Hitler pro-
nouncement. Germans themselves ex-
pect that some compromise can be
reached outside the formal Disarma-
ment Conference. Possibly the talks
which have been started in Rome will
accomplish this. But. whatever the
outcome. the prestige Of the League Is
sadly damaged. In so far as it is bound
up with the Versailles Treaty, Germany
will not regret this.
Paris Supports Leaders.
The business week in France started
in a whirl of excitment. On the very
eve of the reopening of Parliament
which has to face one OF the most serl-
Gus of budget situations, Hitler made
his famous pronouncement Of October
IA. intimating that Germany would
withdraw from the Disarmament Con-
ference and the League unless granted
equality of treatment.
To France, he held out the sugges-
ton that the two countries carry on
special negotiations. There was even
an appeal for friendship and closer
understanding. All France was ex-
cited. Some felt war was inevitable.
Others felt the situation demanded
equal frankness on the part of the
French in meeting the challenge OF
Hitler. Bonds sagged. Speculative
capital eagerly bought pounds and dol
lars. The franc softened. Munitions
stocks were in demand.
Premier Daladier was equal to the
occasion. Incorporated into his speech
opening Parliament was the declara-
tlOD that France was una1Tald because
she had strong defenses and many
friends. First hysteria was calmed-
ariins Guiding his bndset proposals, % and voted
confidence in the present government,
overwhelmingly.
The German crisis sank to what Is
probably its proper place as the week
wore on. France is concerned. but not
The Hitler program is no
doubt primarily for domestic conSump-
ton. II it is not. France is prepared
to meet any situation which may arise.
Germany's move at Geneva is taken
calmly both by business and by the
stock markets in England. It is held
that it will clear the air and 1t Is not
regarded as an immediate threat to
peace. Prices sagged temporarily, and
the flight Of European currencies to
the pound and the dollar has been