Evening star., 1933-10-01
U. S. Action Held Inevitable
Before Mid-N0vember.
Safeguards Talked.
SHARP CUT MAY FORCE
POUND TO SAME COURSE
British Hope, However, to Take
Middle Path and Avoid Threat
to Gold Countries.
Special Dispatch to The Star.


and wireless dispatches to Business
Week give the following survey of busi-
ness abroad for the week ending today:
LONDON-Eventuald devaluation of the
dollar Is considered inevitable in the
city, and is expected some time before
the middle of November. Traders and
financiers are making their plans ac-
cordingly.
Speculation on devaluation prospects
are rampant London thinks that II
the dollar is devaluated to so cents, the
pound must follow the same course,
though it is the hope of the financial
group that the pound can be main
tanned about midway between the ulti-
mate stabilization point of the dollar
and the franc. This would safeguard
London as a monetary center. 1t Is
also believed that If any Anglo Ameri-
can bargain is reached for bringing the
dollar and the pound to new so per
cent of parity level, all remaining gold
standard countries will be pulled of
bank opinion in Britain opposes be-
cause OF the exchange chaos which
would result.
Gold Reflects Doubts.
The gold market reflected the uncer-
tainty The price in the London mar
ket fell from the high of 1873 shillings
9 pence on September 20, but was
maintained at more than 1872 shilllngs.
Demand from the continent was per-
sistent. Despite the activity in gold.
the mining share market was depressed
because of the labor troubles in the
Rand Miners are expected to win
their demand for IS per cent pay IN
crease. The price of gold in the open
market is now more than SO per cent
above the former fixed gold standard
quotations.
business is still optimistic this week.
though the stock markets have turned
hesitant and volume Of turnover
small. Chief factors causing this
hesitancy are the anxiety over the
future of the dollar and fears Of trouble
in Europe. London Is decidedly skeptl-
cal this week on the possibility OF
Chancellor Dollfuss being able to hold
his post in Austria Any change IN
that country at this critical time would
almost surely cause trouble.
The automobile business, which has
been showing new signs OF activity for
sereval months, is still good. The
Standard Motor Co. has announced that
it will soon offer on the British mar
ket a new 9-HP model deliberately
aimed at the market which Ford has
been cultivating with the Ford 3. Char
acteristics Of all new British models this
fall are roominess. road-worthiness, and
foolproof gearshifts.
French Are Alarmed.
PARASITIC seriousness Of the do
mestic situation was brought home to
the government this week by the appeal
80 vry1n "
ernment help. Exports have dropped
60 per cent in four years. In Britain
and the United States, two great COM
petitors on world markets, currency
values have deprecated more than 80
per cent. Germany is another bitter
competitor and the German govern
ment is allowing the use Of blocked
marks in meeting export bills, and these
blocked marks are selling at discounts
up to SO per cent. Frenchmen claim
that the situation already Is impossible
and there are no signs that it will be
corrected unless the government can
rigidly bargain all French foreign Or
ders against corresponding purchases OF
French manufactures.
BERLIN-Governme attention last
week was focused on the farmer and
the evolving German AAA program
lIlS week IL HAS 1ONuSC0 VII CAAOA 70 W
boost the bond market and revive
confidence in securities.
Reich Aids Bond Prices.
Following the slump in both bond ano
share prices with the dumping Of both
by emigres fleeing the country ano
eager to take as much cash with them
as possible, and with hurried sales by
anti-Eitler groups abroad. there has
been a considerable recovery. Two
methods have been adopted by the
government to stimulate confidence
There has been open market buying BY
the Reichsbank and a definite effort
made to refund troublesome communal
debts, now one of the most depressing
factors to bond price recovery. Beyond
these two efforts, new subsidy of hall
billion marks has been appropriated
to stimulate the repairing Of houses ir
the early Winter months. This will helI
to absorb more of the unemployed and
maintain the slowly improving purchas-
ing power of the public.