Evening star., 1933-05-07
Depression Talk Subsidies IN
France as Commodities
Show Upward Trend.
BRITISH MARKETS RISE
ON new BUDGET PLANS
Bullish Factors Also Supplied BY
Recent Trade Pacts With Den.
mark and Argentine.
Special Dispatch to The Star.

NEW YORK. May s.-Cables and
wireless dispatches to the Business Week
give the following survey of business
abroad for the week ending today:
Paris.-France Is going in for infla.
ton. Comodity prices are throwing OF
depression ballast. So are stocks. The
Bourse has been booming all week.
Only government bonds got tangled
IN the ropes.
There IS a reason. France. though
Technically still on the gold standard.
knows that the old standard is gone.
Only technically will the treasury pay
out gold francs. Actually, one can't
get to the gold. Britain has found it
10 her advantage not to try. And the
to raid Paris. France and Britain are
obviously going to stick together on
monetary policy. But the French real-
ize that their country is ready to hop
into the revaluation line along with
Britain and the United States. It n
only a matter Of time
Signs Of Trade Upturn.
1t Is significant that Paris is talking
openly Of the futility of holding the
world Economic Conference IN June
unless there Is some previous three-way
agreement regarding the future none.
tary ratio between sterling, the dollar
and the franc.
Industrially, there were concrete SIGNS
OF trade revival partially to justify the
rise In stock prices March iron and
steel production have Just been dis
closed, and the records show marked
improvement. Steel output ran to
586, 900 tons, which is 18 per cent above
the February total, and Is the highest
monthly output since October, 1881.
Iron production Jumped 525,000 tons,
up IL per cent on February. and the
highest since December, 1881. Since
the first of the year seven furnaces
have been blown in, making the total
now operating IS. Unemployment u
declining steadily.
London.-Since England has heard
the details Of the new national budget
and because they are no more drastic
than was expected, the market has re-
sumed some Of the buoyancy which
characterized trading before the gold
embargo In the United States.
Br1tishers know that currency reval-
uation Is necessity now and that there
may De a battle between the dollar and
the pound, but the auspicious begin
nings Of the Washington conversations
have helped to make London optimistic
over the possible good results of the
World Economic Conference.
Also bull factors were the announce
ments OF the new trade accords with
Denmark and the Argentine. BY the
terms Of the new Anglo-Danish trade
agreement, British coal, coke. pig iron,
steel mesh and jute will be admitted to
Denmark duty free. In return the
Danes are promised quotas on bacon,
nam and eggs, which are only a little
smaller than the annual exports to
Britain in the last three years
The Argentine treaty assures Britain
an increased share In the foreign ex-
change regularly available in Buenos
Aires. and the new f10,00O,000 loan is
reported to be for use in England for
paying interest to British holders Of
Argentine sterling securities.
BerLn.-Hitler made one of the smart
est moves since he became chancellor
when he turned May /, the day when
Communists in Germany have been ac-
hearing, into q nationwide celebration
Of the complete victory Of the Nazis. A
day Of parades was clinaxed with an
address by "the leader"
1t was memorable day. marking the
monopoly OF Nazi power over all OF
Germany. Germans expected Hitler's
speech in the great Tempelhof arena
at the end Of the day to outline for
them an economic program toward
which they would all strive during the
coming year. They were disappointed.
There was the usual magnetic Hitler
oratory, but no definite program.
Features Of Schedule.
Features Of the vague economic
schedule were compulsory labor service
for young Germans $50 they will re-
spect manual labor from having had
a share in it), an appeal for a buy
now" campaign. more urging that indi-
viduals feel it a personal responsibility
to help find work for the unemployed,
the promise of a vast public works
program implying an inf1ationist pro-
gram. There was fresh emphasis on
the protection and aid that Is to be
given to small business.
Stocks rose sharply, bonds slumped,
on his reference to "an absolutely nee
essary reduction In interest rates"
Bondholders expect mortgage rates to be
cut. Industrialists expect that German
pressure for debt reduction will open
foreign markets, so that Germans can
at least sell enough abroad to meet
their interest obligation.