Evening star., 1933-12-17
GERMANY IS READY
TO CUT PAYMENTS
ON FOREIGN LOANS
Schacht Warning Regarded
as Wedge in BiIateraI
Trade Talks.
BUSINESS CONTINUES
ADVANCE IN BRITAIN
Paris Affairs Take Turn for Better
as Work of Restoring Faith
in Franc Progresses.
Special Dispatch to The Star.

NEW 1ORh, december 16.-CableS
and wireless dispatches to Business
Week give the following survey of bust
ness abroad for the week ending today:
BERLIN.-Germany loomed in the
Hmelight this week. The first all-NaZi
parliament convened, took Just seven
minutes to recess itself until after the
Christmas holidays. Dr. Schacht told
creditors Germany might find it neces-
sary to reduce the amount of the pay
mentS she was making in foreign ex-
change on outstanding commercial
debts. Marks appreciated in value on
the announcement, but German bonds
universally dropped in European and
American markets.
1t is the opinion of German business
that DR.. Schacht's statement that the
country cannot longer meet as much
as so per cent of its foreign obligations
IN transfers is biased by pessimism. and
that 1t has as its objective a better
bargaining position for the Reich in
various bilateral trade talks already
under way or soon to be undertaken
Germans are of the opinion that it is
unwise to continue the discriminatory
agreements with Holland and Switzer-
land on the payments to creditors be-
cause OF the criticism it has raised in
Britain and the United States. both
huge creditors and good customers.
Discussions will continue in Berlin.
Recovery Continues.
A number of reports during the week
indicate the gradual recovery in this
field Of business. Bankruptcies de-
clined in November. Carloadings in
the last week in November we're l3 per
cent above the same period last year
The chemical and radio industries
report an increased number employed.
Despite the diversion Of some busi-
ness to CzechoSlovakia because of the
boycott, exports of cotton fabric gloves
to the United States exceeded $780,
600 in the first nine months of this
year. in comparison with S2,700 900 in
the same period last year.
The Bureau of Statistics announces
that the national income in the third
quarter will pass the figure for last
year by at least 10 per cent.
The German State Railways have
just placed a contract for 1000
3 and ton diesel engine trucks. 1t
is reliably reported that no more gaso-
line trucks are being made in Germany,
except for export, the entire demand in
Germany being for diesel trucks
Unemployment declined $4,000 in
November.
British Are Optimistic.
LONDON. The British are ap-
preaching the Christmas holidays in
spirit of genuine optimism. Christmas
trade already shows signs of running
up a new record far above the last
several years. Foreign trade figures for
November show an increase of Il per
cent over october, indicating that
other countries are sharing in the re-
covery Of buying power. Shipping is
automatically registering gains. Cargo
freights in November gained 1T per
cent over October. which in turn had
registered l per cent gain over Sep
tember.
The SteadineSs of the stock market
and the very small turnover are at
tributed to the relative steadiness of
the dollar. There is the expectation
in London, however, that Roosevelt will
once more pursue. his depreciation
policy once December refunding is out
of the way. In the meantime, no gen.
uine credence is given to rumors of
sterilization around the current rate.
French Troubles Ease.
PARASITIC better turn in French
political events is due more to external
than internal developments. 1t is due
to the outside pressure upon the franc
which on at least two occasions was
serious. 1t was this evidence of for
eign concern over the French political
outlook that caused the Socialists to
decide to abstain from voting against
the Chautemps government for fear it
would seek a concentration government
with groups from the Center and the
Right which could for time, at least,
dispense with Socialist support. The
present budget measures are admittedly
Inadequate and disagreeable to all
parties, but they are tolerated as
means of restoring outside confidence
in the franc.
France has been pleased with certain
phases of the Chautemps policy. Re
fusal for the third time to pay the in
stallment due the United States on
war debts. and bit of cleverness In
dealing with the German appeal for
direct negotiations which has placed
the problem equally at the door OF
Britain. Italy. Poland, and the coun-
tries of Central Europe has appealed 10
Frenchmen. Even the improved POSI-
ton of the franc, which has reduced
premiums on l to 3 month futures to
the point where they line with French
short term treasury rates, is ATTRIBUTED
to the clevernesS of M. Chautemps.
There are no notable changes in
business this week Vintage merchants
are anticipating a boost in exports
with the new demand in the United
States.