Evening star., 1933-02-05
Political Factors in Germany
and France Obscure
Trade Outlook.
FRENCH UNEMPLOYMENT
REACHES RECORD MARK
British Report 21s New Indus.
tries, Gain in Cotton Consump.
ton and Savings Increase.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, February 4-Cables and
wireless dispatches to the Business Week
give the following survey of business
abroad for the week ending today:
Berlin.-Germany was confronted
with a series of shocks this week. In
the first place, Won Schleicher resigned
the chancellorship much sooner than
any one anticipated. Almost within the
hour the blustery Hitler was called by
President Won Hindenburg to head a
new cabinet. That Hitler would accept,
with all the restrictions imposed, was
a surprise. That Hugenberg and Won
Papen-one the epitome of capitalism,
the other Of the land holding classes
should be in the same cabinet was
another.
Fright was short-lived Hitlerites
we're in 3-to-9 minority in the cabinet,
the Won Neurath was continued in the
important foreign ministry. Count Won
Schwerin is to guide finances. With
these two conservatives in key positions,
there is small opportunity for Hitler
eXceSses.
Politics Restrain Trade.
Unless the Catholics refused to block
a majority in the Reichstag, however,
even the odd coalition could control no
ma jority. This was behind the Hitler
appeal for the Right to govern without
the backing of the Reichstag. Presi-
dent Won Hindenburg finally accepted.
Until March Hitler's cabinet will
rule" On that date Germany will 60
to the polls.
The future is a question mark. Ger.
talnly in coming weeks the country
will be unsettled by another political
campaign, and with Hitler in a position
to control the radio it is likely that
it will be more intense than any Of
the numerous campaigns Of the last II
months.
Faced with an election campaign it
is unlikely that many radical reforms
will be attempted in the intervening
four weeks
Recent economic gains in the country
are bound to be retarded by the un-
certainty which always comes with an
election, but particularly with one which
may bring Hitler into power with an
increased following. If not complete
straint will be determined by the sue
cess Of his present colleagues In the
abinet and of his enemies.
Assumption of formal responsibility
by Hitler removes constant factor OF
agitation and uncertainty. There will
no longer be a question as to what
Hitler would do if in power. Ger.
many will know. His enemies are con-
f1dent of his failure. His followers be-
Leve he will soon throw of the present
shacklts of minority control of his
cabinet. 1t remains to be seen which
group is the greater. The election on
March will answer the query 1t will
probably spell the doom, or open the
way to political career, for Hitler.
Paris-The new French cabinet, head.
ed by NJ. Daladier, who is also minister
Of war, is expected to be even more
transitCry than its predecessors Al
though reaching farther to the Left
than either Herriot or l-Boncour,
Daladicr is still unable to gain the sup
port OF the Socialists. despite having
offered them five prominent cabinet
positions.
Unemployment in France has reached
its highest point in the history of the
depression. Steel production for 1882
was down 80 per cent, compared with
1881, and AZ per cent when compared
with 1929. Steel exports last year were
down 28 per cent and pig iron Ship
ments were of so per cent. Despite
the rs per cent reduction in coal i'm
ports in 1882 and in spite of the fact
that domestic prices are 100 per cent
ABOVE the foreign average. coal stocks
are piling up and the industry is COM
planning of dull markets
Bullish Business Factors.
Textiles continue to be the one bright
spot in the industrial picture. and this
is due mostly to internal consumption,
Lendon.-Bull points which appeared
In the business news this week can be
summarized: Two hundred and eight
cen new industries are reported in the
country; consumption of cotton in.
creased in 1882 by per cent; new cap
ital is going into steel, which is under.
taking an extensive naturalization pro.
gram shipbuilders. in contrast of De-
cember trade reports, now indicate that
conditions have changed and that pros
poets have not been brighter in the last
three years; small savings in 1882 in.
creased by S45,000,000; % life insur-
ance offices reported increased business
in 1882.