Evening star., 1933-05-21
GERMAN ECONOMIC
| PROSPECT D|MMED
I. BY TRADE DEFICITS
Loss of Exports and Petty
Business Raids Reported
From Reich.
RECENT INDUSTRIAL GAIN
| IN FRANCE IS CONTINUED
Gold Clause Position of the U. s.
Arouses Resentment Among
| British Investors.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 2O.-Cables and
wireless dispatches to the Business Week
give the following survey of business
abroad for the week ended today.
Berlin.-If Chancellor Hitler's first
convocation of the Reichstag at Pots
dam in March was more spectacular, 1t
was no more momentous than the Sec
ond meeting in Berlin this week. And
to the outside world the second was
even more significant. For the first
time since he became chancellor Hitler
declared stoutly Germany's attitude on
disarmament and, to some extent, for
eign policy.
Following the warning at Geneva that
Germany would declare its stand on
arms, markets fluctuated and sagged.
There were other influencing factors.
Germany's foreign trade surplus,
dwindling during the first quarter Of
the year, became a deficit in April.
Even before the results were publicly
announced DR.. Schacht declared that
transfer moratorium on Germany's
long-term private debts (the part of
the foreign debt not already covered by
necessity. It had been expected, but
1t caused some reaction when creditors
were summoned to Berlin for a confer
ence on May 26.
Raids on Business.
Aside from the uncertainty resulting
from the boiling Of foreign political ten
sions, German business has been seri-
ously hampered In the last few weeks by
iy1r I'D,
Though the NaI government does not
uphold these many petty raids, they
have continued until they have become
distinct menace.
Securities are affected by the prospect
that there will be further compulsory
reductions in interest rates, possibly a
compulsory loan to finance a public
works program, and apprehensions lest
there be some official limitation of divi-
dends, especially among the utilities.
Paris.-Ihe French were completely
deceived by President Roosevelt's dis
armament speech. Although his good
| intentions are lauded, and his appeal for
moderation approved, his logic is frank
ly deplored since 1t is pointed out that
peace can be assured by only two meth
ods: Q reduction Of the aggressor
to absolute impotency, or CD establish
ment of an inviolable pact between
powerful nations promising mutual sup
port in case any member is attacked.
The first method has many adherents,
but the thinking public in France criti-
cizes it as slightly archaic, preferring
openly the second.
Business in France, despite all the
tenSeness, is still pointing upward, Un-
employment is declining. Foreign trade,
however, is still loggy. The Bourse has
rega1ned certain calmness following
the recent squirt, but it is remarkably
steady in the face of developments.
London.-Britain's tenseness over
Germany and the serious situation
which has been created at the Geneva
Disarmament Conference has disturbed
British markets and brought down Sc
curity prices, but the general business
undertone is still good.
New trade agreements have been con-
cluded with Norway, Sweden, Denmark,
Germany and the Argentine, and 1t is
expected that negotiations with Fin
land and Iceland will end in treaties in
the near future There Is general sat-
lsfact1on over the results, though some
industries complain that the benefits to
Britain are small. Beyond these nego-
tlatlons, further plans for two-country
pactS VIII be postponed until after the
tariff truce.
Gold Clause Position.
The annoyance felt and expressed by
Britain when the United States aban-
doned the gold standard was mild COM
pared with the rage which has been
shown over the gold clause position. The
strength of this indignation can be
gauged from the wording of one news
paper contents bill: THE Gold Clause
FraudICity Disgust" London banks
were thrown into confusion by the an
nouncement. Some advised customers
10 accept paper dollars, reserving the
right to sue for the difference. Others
protested" the coupons on which paper
dollars were offered, and asked custom
ers for further instructions.
When Germany announced during
the week that payment on the Young
and Dawes loans would be made in to-
Gays currencies, public CONSERVATION
was revived. Affected bondholders are
attempting to form themselves into pro-
test bodies for common action.