Evening star., 1933-02-12
Conservative Financial Inter-
ests Alarmed Over Intensity
of Speculation.
GERMAN TRADE UPSET
BY POLITICAL CAMPAIGN
French Business Is Unfavorablv
Affected by Controversy
Over the Budget.
Special Dispatch 20 The Star

special Dispatch TO The Star.
NEW YORK, February I1.-Cables
and wireless dispatches to the Business
week give the following survey of bust
ness abroad for the week ending TODAY.
London.-The British investment mar
| ket mas gone wild this week on gold
nilne snares. The boom got a mild
Start snortly after the British aban-
doned the gold standard and thereby
placed premium on gold. India. with
hoards OF the metal slowed away, was
reaoy TO reap the first benefits. Now.
aiter IL months, the mines are begin
nlng to pour out larger and larger
quantities Of gold. When South Africa.
leading gold producer, abandoned gold
lew months ago, it was a renewed
signal for a rush
There Is genuine alarm in London
over the proportions Of the present
ooom. Shares can't possibly go on sell
ing with such rapid advances. When
the boom breaks lot of SPECTATORS
Will be caught and the reaction on the
rest OF the market is bound to be felt.
| The smaller boom In tea shares is con-
sidered logical, for it is genuinely ex-
pected in London that growers will get
get together in April on a large-scale
restriction scheme.
Industrial Research Plan.
Nothing during the week is of greater
significance than the vague $50 farl
announcement Of an organization To
provide intermediate loans for indus
trial research. Joint stock and merchant
banks, under the supervision of the
Bank OF England. operating through its
subsidiary, Bankers Industrial Devel-
opment Co., will make loans to in
dustry seeking more than an ordinary
bank loan but yet not able to Sc
cure adequate long term financing.
Ihere Is a very definite implication in
the nrst announcements that the gov
eminent and the Bank of England are
planning to go long way in pressing
naturalization on ultra conservative ine
dustrialists with the idea of preparing
the country's industry for a post-depres-
sion industrial boom in which COM
pet1tors may well have the advantage
over the British unless they reorganize
their industries. There Is a striking
similarity between the British plan and
the recently announced Mussolini pro-
gram for Italy.
Berlin-The situation in Germany ia
grave. Business, which was progressing
nicely until the cabinet crisis. is not vet
badly upset, but, as the future grows
more uncertain, the outlook darkens.
Inc results OF the March elections
VIII bring the first important indication
OF what is ahead for Germany.
II Hitler is In power, it will be only
with the support of Hugenburg and the
small following OF Won Papen and the
Junkers. He win not be able to GO far
with radical reforms with these men
around him.
If Hitler fails to secure a parliament
tary majority and Won Hindenburg re-
fuses to let him dissolve the Reichstag
and rule under presidential authority.
there is a possibility that the Hitlerites
VIII refuse to obey and will attempt to
Iorce their viii upon Germany.
Whether he wins or loses, there Is
pound TO be q continuous series Of
clashes between the Hitlerites and the
Communists. They are bitter enemies.
Hitter, In openly fighting them, will
proDaDly succeed in covering up his in
ability to carry out many Campaign
promises.
All these uncertainties are reactins
on German business this week. Indus-
trial activity is declining well beyond a
possible seasonal lull. Coal and steel =
nave suffered especially. Textiles are
complaining bitterly of British and jap
anese competition.
French Budget Problems.
The outlook is far less bright than
it was up to two weeks ago. It NAV
improve after March 5. Business can
hardly do more than mark time until.
then
Paris-France viewed this week the
tnlrd attempt at 1888 budget. The
most important feature of this latest
attempt is that it makes no pretense at
a real balance. 1t also abandons ali
attempts to cut civil service Salaries
except in the higher brackets. and
makes no reductions in pensions.
Informed opinion in Paris expectS
that the budget, despite all its curtail-
mentS, will not meet the demands OF
the civil servants and renters and that
u VIII need to be further emasculated
before it can be passed. MeanwhiIe
the uncertainty is having a distinctlv
unfavorable influence on business.