Evening star., 1933-09-03
GERMAN INDUSTRY
FEELS ADDITIONAL
EFFECTS OF SLUMP
Reich Alarmed by Itab's
Move to Aid Austria.
"BIoc" Foreseen.
Special Dispatch to The Star.

NEW YORK, September 2-Cables
and wireless dispatches to Business
Week give the following survey of busi-
ness abroad for the week ending today:
BERLIN.-There is increasing evi-
dence this week that the seasonal slump
is unchecked. There is an IL per cent
decline in steel production and more
signs that the automobile boom is COM
ing to an end. Opel controlled by
General Motors) has returned to
four-day week. Carloadings are re-
ceding. The wholesale price advance
has come to an end and securities are
Sagging.
Germans are becoming genuinely
alarmed over the revived plans through
out Europe for the old regional bloc"
system, which is always as bound up
with politics as economy Mussolini's
move to aid Austria, following the trade
arrangement made with Hungary some
months ago is likely, sooner or later, to
stir French antagonism because it cuts
French prestige in Central Europe It
is only during the present tense situa-
tion that Paris is allowing the matter
to pass with little protest.
Paris Watches Dollar.
PARIS.-Foreign exchange fluctua-
tions, especially the dollar and the
pound sterling, held major business at
tention IN Paris this week. The franc,
seemingly, is left clinging tighter than
ever to gold. despite President Roose-
velt's blunt warning during the London
Conference that it would scarce be pos
Sible to remain on the gold standard in
the face of the huge budget deficit. The
Frenchman retorts that every country
is living beyond its means and the only
real danger in France is lack of con-
fldence in the government.
There was note of satisfaction in
the continued flow Of foreign funds to
Paris and the returning confidence In
each of the gold standard countries in
the determination to stick to the gold
basis. It Is not denied that France ex-
ports are suffering severely from the
competition of exports from off-standard
countries, but Premier Daladier Is plan
ming to negotiate series of trade
treaties with other countries, using as q
wedge for better treatment of French
exports the fact that France Is a greater
importer and exporter and so Is in q
position to retaliate if worse comes to
worse.
The 5000 100000 franc national
deficit, now definitely foreseen, Is not
viewed with unusual alarm in France,
since It IS still believed that . few
major economies In expenditures and q
few mild new taxes will make it pos
sible for the treasury to cover 1t in
the usual manner.
British Trade on Mend.
LONDON.-with the end Of AugusA
the Summer hull in England reaches its
quietest time, but business this year Is
han faJ tr hA t1,a
and the stock markets have had the
busiest August for some years past.
Gold mining shares have experienced
another small boom this week.
The early Fall will see rush of new
issues, many of which were prepared to
be offered last Spring, but were with
held on government order until after
the Australian, Canadian and Austrian
leans had been issued. Early this Fall
there is likely to be another government
conversion to fund the floating debt,
with its overweight Of treasury bills,
and South Africa will come almost GER
tainly into the London market with q
10000, 900 conversion offer. Ali these
anticipations give pleasant expectancy
to the atmosphere, which also Is st.mu-
lated by the consistently good home rail
traffic The next batch of trade and
unemployment figures, due early in Sep
tember, Is awaited with more than
usual interest, and it is expected that
the extent of the seasonal falls will
prove to have been checked again.
The country continues to watch the
Roosevelt experiment with the keenest
interest. London believes that America
will Be forced to devalue the dollar
whatever happens. If the codes sue
ceed, the anticipation is that the rising
demand for currency will force depre-
ciated currency out; If the codes fail,
the anticipation is that the setback to
industry and the commodities will need
imitation to correct it.
Anxious About U. s.
As the Autumn drain on sterling nor
mally means the appreciation Of the
dollar-which, it is assumed, IS the last
thing Washington wants-the shift by
Roosevelt from industrial to currency
adjustment IS awaited with considerable
anxiety.
The index of industrial activity in
the second quarter was II per cent
above the first quarter and IT per
cent over the second quarter Of last
year. Registrations Of private motor
cars show a big increase. Rail tramc
continues good Activity on the foreign
exchange market, with notable depre-
citation of sterling against the franc, Is
caused by continental fears Of the ef-
tIch