Evening star., 1933-07-09
French Shocked by BIuntness
of Expected Roosevelt
Monetary Stand.
B0URSE TRADING ACTIVE,
TURNOVER TAX MOUNTS
Terms of German Moratorium
Eased on Dawes and Young Loans
as Nazis Perfect Control.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, July 8-Cables and
wireless dispatches to Business Week
give the following survey of business
abroad for the week ending today:
PARIS-There is little surprise in Paris
that France and the other members OF
the European gold bloc have been un-
able to induce Britain and the United
States to return to the gold standard.
Paris had expected this from the first.
The shock to Paris Is that President
Roosevelt should have worded his re-
lection SO brutally, To France, the
abrupt refusal to consider the French
plea for rehabilitation is merely Amer
ica's expression of resentment over the
French refusal to continue war debts
payments That the President Of the
United States should take his revenge
by ridiculing European monetary pre-
ceptS, however, is considered the most
unkind step he could have taken.
Business in France has been very
little disturbed by the quibbling in
London during the four weeks of the
conference. Possibly this is because the
French were skeptical of the outcome
from the first The Bourse has been
active all this week, with international
issues especially strong. Business
throughout the country is showing more
spirit. When turnover tax returns for
May were disclosed this week, they
showed that government income was
121 million francs above budget esti-
mates and 1877 millions over May re-
turns last year
Coal production also was up in May.
The number of blast furnaces now ac-
tive is greater than at the end Of 1881.
Reich Policies Eased.
BERLIN-Fears that the London
Conference would collapse were reflect
ed all week in Berlin, without its
having much effect on business. Ger
mans are convinced that Washington
has determined its policy and will fol-
low it even if it leads to complete iso-
Iation. This Germany does not expect,
for Germans feel that Europe is too
divided by individual interests ever to
present united anti-American front
There are several indications that
Hitler is moderating his policies as he
gains more and more complete control
over all of the activities Of Germany
Foreigners are most affected by the
easing of the terms of the moratorium
AS predicted in Business Week. both
interest and amortization charges on
the Dawes loan will be completely ex-
empted from the transfer moratorium
Interest charges on the Young loan are
also to be paid regularly abroad, but
not amortization
In the case of the remaining debts,
few will be serviced in full. but on
the majority only so per cent of the
interest due will be transferred out of
Germany. On the so per cent which
must remain in Germany it is expected
that it will be covered by scrip which
is likely to sell abroad at about SO
per cent discount. When purchased
abroad by foreign importers of Ger
man goods these blocked accounts will
provide a means of large-scale f1nanc-
ing of additional exports and will help
German manufacturers to cover a part
of the ditferential between prices of
goods from deprecated currency coun-
tries and from Germany, where the
mark is held artihcially at the old gold
value.
London Still Hopeful.
LONDON-The Roosevelt bombshell
and the resulting disorder at the World
Economic Conference had no wide
spread effect on British business. 1t is
the firm conviction of London that
whatever other problems on the confer
ence agenda may be abandoned or post
poned. some delegates from all the i'm
portant producing countries will con-
tinue steadily to deal with the problems
of production and distribution. The
virtual success of the wheat producing
nations in arriving at an accord is
accepted as good omen for other
groups expected soon to get together.
There is already a boom in tea shares
on the prospect of curtailed production.
Tariff discussions are likely to make
little headway with currency Stabiliza-
tion delayed
The most striking development dur
ing the week from the point of view of
the keenly observant was the influence
which the famed Swedish economist.
DIR. Gustav Cassel, seems to be having
en- members of the British cabinet. DR..
Cassel is one of the great European
protagon1stS OF managed currencies. His
theories are largely responsible for the
success of the Bank of Swedens efforts
to maintain the Swedish kroner at a
steady level since the country followed
Britain off the gold standard. More
than one member of the British cab
met Is known to favor a similar system.
1t generally is believed in London that
the cabinet would go long way with
President Roosevelt in any plan for a
more stable international standard than
gold. at least as it functioned in the
last decade. On the other hand con-
tinued decline of the dollar brings in
creasing pressure for Britain to link the
pound to the franc The Bank of Eng
land no doubt favors this policy.
WhculMcTOM McM CAIN