Evening star., 1933-06-04
German Austrian Impasse
Menaces HitIer's Hope for
South European Trade.
FRENCH REPORT GAINS
IN SOME INDUSTRIES
British Business Upturn Is Accom-
panied by Pickup in Prices
for Securities.
Special Dispatch to The Star.

Special Dispatch to The Star
NEW YORK, June 3.-Cables and
wireless dispatches to the Business
Week give the following survey of busi-
ness abroad for the week ending today:
Berlin.-Germans were far more in
terested this week In the rupture In
relations with Austria than in any out
and-out business development.
Trouble has been brewing for months.
The present government in Austria Is
in very much the position that the
Bruening government was in a year
ago. 1t is in power not because it has
the whole-hearted support of major
ity, but because no opposition is able to
muster majority to oust it.
Major opposition in Austria Is the
domestic Nazi organization, which
copies its neighbor and dreams of a
Fascist type of government for all Aus
tria. The chancellor, however, has so
far succeeded in retaining his power,
though not without taking some rather
drastic measures against the local
NaZis.
Tourist Traffic Halted.
It was in retaliation to these that
Chancellor Hitler this week decreed a
virtual halt of all German tourist traf-
f1c to Austria by levying 1,000-mark
visa charge for Germans visiting Aus
tria. Since this is more than s270 not
many Germans are likely to cross the
border in that direction though Austria,
with its mountain resorts and the at
fractions of Vienna, usually draws
thousands of Germans each Summer
Hitler, it Is said, realized that nearly
I1a1f 80 ATre& tbs -, IL,
Germans. If they don't come, business
will be bad, and the position of the
present chancellor in Austria will be
awakened.
Sentiment Is divided IN Germany.
The jingoists are delighted. They see
only the reprisal angle The more seri-
Gus are worried. A year ago there was
the dream OF an anschluSs with Aus
tria. Both Germans and Austrians
wanted it. To the Austrians it was
one way Of getting advantages In a vast
market. To the Germans it was an
opening wedge in the great trade region
of Southeastern Europe
That dream is now pretty much
blasted by the new conflict between
Vienna and Berlin-unless Chancellor
Dollfuss falls on the issue and the
Austrian Nazis come into power. And
the conflict with Austria is likely to
affect adversely the German trade posi-
ton in all Southeastern Europe This
would be even more serious to Ger
many than 1t would have seemed year
ago, for recently the British, with their
new two-country trade agreements, have
taken away fat portions of many Of
Germany's best markets in the Baltic
region.
Paris.-The final struggle over the
budget, which was passed without bal
ancing, and the agreement by the Della
dier government-despite the vigorous
opposition Of NJ Herriot--to support
the four-power pact with only minor
reviSionS, occupied French attention this
week.
Recent gains in iron and steel activ-
ity have now spread their benefits to
the coal industry. The cotton market
in Lille, however, reflected slackness
this week. The Bourse has timidly fol-
lowed the new burst of buying in Wall
street. Stock prices are generally up,
but government bonds are weak. The
dollar has not been strong.
observation-disclosures that business,
fetal stimulation, Is going to continue
on the upgrade is having its influence
on the British outlook.
Stock Exchange trading Is attracting
a wider following each day. Interest
has already spread from the narrow
list OF gilt-edged securities to which it
was pretty closely confined during the
depression. Industrial shares have be-
come popular and there is a growing
interest in commodities Even the new
issue market has become active again.
Business Increases.
1t Is not easy to find signs of spec
tacular increases in Industrial produc-
ton, but business Is quite obviously
gathering momentum which soon will
become visible in the key indicators.
Observers with their eyes on the all
important Northern regions, where
much of Britain's industry is located.
are encouraged by signs of returning
confidence. One especially significant
development is the growing activity in
the clothing trades serving working and
middle class customers. Not only is
there more business, there is better de-
mand for garments of higher quality.
Thls Is always significant index of
better times
II the World Economic Conference
due to convene here in less than two
Weeks-can do its main jobs of stabiliz-
ing currencies, lowering trade barriers
ana freeing exchange restrictions. Brit
am 1eels that it is now equipped as
never before for rapid advance.