Evening star., 1933-04-23
EMBARGO ON GOLD
MAY Be DECLARED
SHORTLY At PARIS
Effect Of y. S. Action on
Franc Closely Watched by
Financial Experts.
HITLER ECONOMIC PLAN
IS AWAITED IN GERMANY
British Business Circles Are Gen.
orally Encouraged by Improve.
ment in Several Key Industries.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. April 22.-Cables and
wireless dispatches to the Business
Week give the following survey Of
business abroad for the week ending
today:
Paris.-The decision Of the United
States to impose an embargo on gold
was no surprise 10 Paris. but there
is no unity to the speculation Is to
what will be the ultimate reaction on
the French franc. 1t Is widely expect
ed. however, that France-the last
major bulwark Of the gold standard
will be forced to clamp down . similar
embargo, at least until her position can
be defined.
This should not imply that the
French question the strength Of theil
currency. 1t Is pointed out in each
heated argument that the position Of
the French Is quite different than the
British position when the pound ster-
ling went OF the gold standard. and
the American position when the dollar
went of gold. French internal prices
for major agricultural crops have been
maintained at artif1cially high levels by
means Of extremely high protective tar
i'll walls. In many cases prices are
double those on world markets. Par
ticularly has this protection applied to
wheat. Thus. when the decline Of the
dollar forces commodity prices up
France Is little affected internally.
French Monetary Position.
In one respect the French an
pleased that the embargo and the De.
cline of the dollar has come now. II
removes q tremendous burden from the
shoulders Of M. Herriot. Frances repre-
sentative to the informal Washington
conferences. Now. they reason. the
core Of the conference will be none
tary question, rather than war debts
and tariffs. In the discussion Of either
Of which France is at a disadvantage
But in monetary matters France. last
stronghold of the gold standard, thinks
she can shine. Herriot will play the
role of arbiter (at which he is excel
lent), for 1t is expected that there will
be a fierce battle between the United
States and Britain as to whether OF
not sterling (including the whole bloc
of 80 or more nations whose curren-
cies are tied to the British pound
willingly or forcibly will be returned To
gold standard rules.
Business generally Is little changed
this week. The March foreign trade
balance still shows large deficit. Un-
employment Is approximately the same
~ - Id To- 81 kart
tinuation Of the Citroen (automobile)
strikes indicates that workers are not
vet reconciled to the idea Of wage cuts
which are now as necessary in France
as they have proved to be in other
countries affected earlier by the de-
preston.
Berlin.-German interest this week
centered in the Hitler promise to an
nounce May German Labor day. his
plan for "the new deal" It Is to come
in the form Of a four-year plan for In
dustry and labor. He has promised that
it will bring relief to farmers and alb
sorb the unemployed. These are his
two first duties. After that, he is likely
to press his plan for state reorganiza-
ton after the Mussoini model Of q
corporate state"
Business activity has continued to re-
fleet seasonal recovery this week, but
the public Is losing hope for more than
q seasonal gain until the new program
gets under way. Securities markets re-
fleet persistent confidence, however, and
the March foreign trade returns show
an increase in exports which lifts the
all-important Ito the foreign creditor OF
Germany foreign trade surplus to SIS,
000, 900.
Britons Encouraged.
Export demand for German automo-
biles has declined seriously this year
but home demand has been greatly
stimulated since Chancellor Hitler de-
creed complete freedom from automo-
bile taxes on all new cars. Automobile
shares have been in greater demand fol-
lowing widespread discussion Of the
"motorization OF Germany"
London - Easter, the first public
holiday Of the English year. followed
closely (this year, by the announcement
Of the new budget, has . trick Of In
augurating . change Of mood. It mark
a certain seasonal slowing down OF
business, but 1t provides q new starting
point for plans and enterprises.
Business leaders in commercial Lon
don are generally encouraged by thu
weeks developments. Steel production
is increasing, rail traffic is heavier
shipbuilding in March showed a pick.
up for the first March in three year.
and the output Of electricity has estab.
nShed q new record. Considerable op.
timism has been stirred by the nu.
merous favorable reports by chairmer
OF large companies ut their snnuA
meetings.