Evening star., 1933-03-12
Price of Metal Abroad Is at
Present Fixed by French
Franc.
AMERICAN STOCKS GAIN
ON FOREIGN EXCHANGES
Sharp Advances in German Securi-
ties Accompany Success of Hitler,
but Trade Remains Dull.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 11.-Cables and
wireless dispatches to the Business Week
give the following survey of business
abroad for the week ending today:
London.--President Roosevelt's emer-
gency measures have been received
more calmly in London than in Ian
cashire. where cotton textile manufac-
turers have been upset by the closing
of the New Orleans Cotton Exchange
and later the New York Exchange.
Dealings in all foreign exchanges were
suspended March 4, when the news Of
the New York holiday reached London,
but normal trading was resumed March
6, except in dollars, though rate Of
exchange was determined on travellers
checks to accommodate the large num-
Der Of tourists always in London.
The main reaction in financial Lon
don, as far as foreign exchange is con-
cerned, is the anxiety over the future
OF the gold standard. At present the
price of gold IS fixed by the French
franc, with the anticipation that if the
United States Is forced off the stand
ard, Holland must follow and probably
France. When this develops the Bank
Of England is expected to declare her
self ready to take all gold offered at
120s, thus providing a fixed point in the
flux Of unlinked currencies, and re-
storing Britain virtually to the gold
standard. If this development mate
rializes, Parliament will increase the ex-
change equalization fund another ESQ
millions, bringing the total amount
available to the fund to f225 millions.
American Stocks Higher.
Stock markets have renewed their ac-
tivity following few days of uncer-
tainty. American stocks, when quoted.
are generally rising Gold mining shares
are erratic. The uncertainty of the fu-
ture Of the gold standard evidently IS
not yet fully realized in some Of the
great gold regions where speculation re-
Gently reached a new climax.
Commodities have been strong all
week. Cotton showed the sharpest
gains, evidently due to the feeling that
imitation is inevitable in the United
States. Demand, however, has been
steady. especially in the Far East Metal
prices were generally up. Industrially,
the only gains for the week were re-
ported from the iron and steel and en-
gineering industries. Boyer Peacock are
working day and night shifts on an
order for 20 locomotives for the Soviet
l
delivery within three months
Paris.-After a dismal week end due
to the news of the United States bank
ing holiday, the atmosphere again is
cleared with the renewed belief that the
dollar is solid except for deliberate self
undermining. Till now the guiding
principal in France has been concen-
trated in keeping the status quo despite
the evolution of world economy with
the few iconoclasts held in disrepute
Since Saturday it has been admitted
that the ultimate fate of France is
linked to the United States as we'll as
to England and that without solid
triple entente, as displayed in war
times, Frances destiny is as uncertain
as the Sibylline leaves. This realiza-
ton is intensified by the new evidence
of extreme German nationalism as
demonstrated in last Sundays elections.
French bankers are on pins and
needles because of the uncertainty of
President Roosevelt's banking reorgan-
ization plans, fearing lest wanton dol
lar devalorization will drag along Swiss
francs, Dutch florins and finally French
francs themselves, and that it will even
Illustrate British efforts to maintain
sterling at sound and adequate level.
Berlin.-For the first time in three
years Germany has government backed
by a clear majority in the Reichstag,
thus removing the constant political un-
certainty which has been an important
factor retarding business stabilization.
The Hitler Hugenberg coalition govern
ment returned So per cent majority in
the elections March S. Hitler is at
the helm in Germany.
German Industry Quiet.
Securities have already responded
with sharp advances. Steady and in
creasing investment of "standstill"
credits in German stocks and bonds is
an important bull factor Industry,
however, is stagnant, because exporters
are apprehensive that Hitler's extremist
policy Of protecting the farmer will
bring retaliations abroad. During the
week the tariff on eggs was jumped to
IL times its former rate and the import
tax on cheese was doubled.