Evening star., 1933-05-28
Berlin Conference Has Bear.
ing on World Debt Situa-
tion-PIan AnaIyzed.
FRENCH STEEL OUTPUT
INCREASES WITH PRICES
British Markets Display More Con-
fdent Tone as Industry Scores
Further Improvement.
Special Dispatch to The Star.

SpeCldI DlSpdlCH 10 Inc star.
NEW YORK, May 27.-Cables and
wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
Berlin-Germans are occupied with
two developments this week. The first
is the expansion of government control
of industry. Labor trustees have been
appointed to each great industrial re-
gion 1t will be the duty of these rep
resentatives of the Hitler government
to fix wages and determine labor con-
ditions, matters which heretofore have
been in the hands of the associations
of employers and employees in each in
dustry. 1t is definite move in the
direction of Mussolini's corporate plan
for controlling the state.
Creditors Conference.
The second development is Of greater
interest to foreigners. 1t Is the final
plans which have emerged for the In
.ernational Creditors Conference, which
opened in Berlin Friday Some time
ago Germany held a similar conference
to announce to short-term creditors a
transfer moratorium. At. that time it
was agreed that only small portion
of the interest and amortization pay
ments on nearly $4,000, ,000, 900 of
short-term debts could be paid abroad
Each group of creditors was to get equal,
treatment. The balance of the pay
ments were to be made in marks paid
into German banks. These accounts
have become the much discussed
blocked mark" accounts, which cred
itors have sought to sell to importers
Of German goods.
plan similar transfer moratorium on
the long-term debt which Germany de-
clares she Is no longer able to service
in foreign currencies, because of the
drastic decline in the favorable balance
of trade. 1t is confidently expected in
Berlin that the Young and Dawes loans
will be excluded from this transfer
moratorium. Possible reduction in the
interest rate, long anticipated, may not
be asked by the Germans. The United
States is by far the largest creditor,
but British banks also have made large
loans to Germany. Sweden and Hol-
land are two other important creditors.
Bonds have been down on the pros
pect that the government would soon
noat loan which the public would
be forced to absorb Stocks have been
more steady this week Industry is
slack, except automobiles.
Paris-Iron and steel production is
up and the industry Is cheered by the
better prices which have resulted from
renewal of the European steel Cartel
pact. France exports nearly 80 per
cent of her steel production. The
Bourse is more active. Commodity
prices are consolidating at higher
levels
London-Hitler's conciliatory speech,
following the Roosevelt message to the
world, has helped to strengthen the
good tone on British markets. The
public continues to show growing in
terest in industrial shares, in contrast
to the long preference for gilt-edged
securities. The increasing number Of
good balance sheet reports from repre-
sentative companies Is helping to at
tract the interest Of investors.
More Hopeful Reports.
There is another sign of industrial
improvement. Reports from formerly
distressed areas, including Lancashire
and Newcastle, are more hopeful and
Northern branches of the joint stock
banks report growing weekly turnover.
Gasoline prices have fallen following
the drastic cuts ON the American mar
ket. British petroleum interests are
awaiting keenly the result of the ap-
pointment of an oil dictator in the
United States
The British still get pretty angry
when the gold clause is mentioned.
Payment is due in the United States
on the 5l2 per cent Kingdom dollar
bonds on August /. 1t remains ques-
ton whether the gold clause will be
honored or not. The general public is
strongly opposed.