Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-11-19
LONDON IS BAFFLED'
BY US. GOLDPOL|CY'
BUT TRADE CLIMBS.
Public Money Begins to Go
Back Into British Stock
Markets.
EXCHANGE EQUALIZATION
FUND AGAIN OPERATED
Four Banks Employed to Purchase
Franos-Gap Between Pound
and Dollar Ignored.
Special Dispatch to The Star.

NEW YORK, November 18.-Cables
and wireless dispatcho3 to Business
Week give the following survey of busi-
ness abroad for the week ending today:
London.-Business grows slowly but
steadily better. Public money is begin
ming to flow into the stock markets,
thought not in great volume. But over
all is the continuing uncertainty as to
the real significance Of Roosevelts gold
buying policy, and the lingering doubts
as to the preservation Of peace in Eu-
rope. There is no war falkland there
is little real anticipation Of war-but
the possibility is in mems minds.
London still is frankly bafied by the
Washington gold-buying policy. That
the United States is buying is certain,
but from whom and In what quanti-
ties is not yet known. Only this week
did the dollar break seriously on the
realization that Roosevelt is evidently
going to carry his plan 10 the avoWed
end-a 50-cent dollar. The rapidly
Equalization Fund to operate for the
first time in many months. -Four
banks have been employed to buy francs
in 100,000,000 lots, following the at
tack on the franc after the success of
bllC N1C1Hld ClCNbAOtlS. Is pre-
pared, evidently, to allow the gap be-
tween the pound and the dollar to
widen.
Japanese Shirts Sold.
Some concern has been caused by the
appearance on the English retail mar
ket of Japanese shirts, which sell for
l shilling (roughly, Is cents). The
average middle-claSs man in England
is in the habit of paying anything from
SIPS to 81 for shirt, with the better
grades running up to Sc. The ascent
japanese shirt not only appeals to the
working man, but has finish good
enough to meet demands of many
white-collar workers. A demand for an
immediate tariff already has sprung I'D.
The announcement that the London
81 Northeastern Railway group Is
launching E2,250,000 development pro-
gram is expected to be followed by SIM
liar action by the London Midland Il
Scottish Railway, which is the largest
Of the four great rail groups and serves
the big industrial areas. The effect has
been to stimulate the districts engaged
in railway equipment manufactures and
to strengthen the morale of all the
heavy industries.
The significance of the pronounce
lA4GAAb ny a AaAAWay DOdAu Likdb ~ dlltAI4-
pates further expansion of trade is that
the railways boards. like those of the
big banks, contain directors who sit as
virtual Though not Officially represent
atives of the big customer interests.
Reich Markets Calm.
Berlin. poured to polls last
Sunday to cast their votes IN great
expression Of confidence In the Hitler
government. The results-more than
forty million votes from a population of
about sixty-five millions, and almost
unanimously in support Of the Nazis--
exceeded the keenest expectations Of
the NaZi leaders and gives the govern
ment tremendous backing for both its
foreign and domestic policies. For the
time being, however, there is not likely
TO be any radical shift away from the
policies already announced and now be-
ing developed.
Markets accepted the foregone con-
clusion calmly. Bonds were firm.
Shares were irregular, though heavy
industrials generally we're firm.
The new open market policy of the
Reichshank, inaugurated this month, is
designed to revive Germany's capital
market. Already 1t has forced low
ering Of money rates and created the
possibility that the official discount rate
will be reduced before January from
the present 4 per cent rate.
Germany's creditors under the stand
still agreement will meet In Berlin on
December to consider plans for the
extension of the agreement, which ex-
pires December 81.
The decline In the number Of unem-
ployed by 100, 900 in October is indicative
of the steady but slow industrial i'm
provement Third quarter output of
steel was so per cent above the total
for the same period last year; cement
IS per cent.
Advertising Organized.
The National Advertising Council, or
gained under the law Of September II,
has been set up. with appropriate
speeches by DR.. Goebbels, minister Of
propaganda, and Herr Schmitt, minis
ter of economics. 1t consists of so mem
bers the great majority Of whom are
business executives representing trade
associations and individually, the coun-
try's leading industries. The party"
element is distinctly in the minority.
Precise administrative details still are
lacking. Executive orders will be ap-
proved and issued by the council itself
So far it has merely been stated that
the license fees on all advertising activi-
ties will amount to per cent of the
turnover. The amounts collected will.
however. be spent entirely in the inter
ests Of business itself, in the form of
centralized advertising" The main
objective of the new council is to raise
the general standard of advertising and
to fight unfair competition.