Evening star., 1934-06-24

due to the new Franco-British
trade accord, however, textile manu-
facturers are heartened, for, without
knowing definitely the terms of the
agreement. they do know that French
textiles will be accorded substantial
export facilities in the United King
dom, long their best market.
Despite the continued rise of rents
and the willingness of the public tc
lend to the government, recent nu-
merous political outbursts such as the
Toulouse riot this week give evidence
that the political strain is still great
and is gaining momentum"
Germany is Watched.
BERLIN.-'Things are moving rap
idly in Germany. Chancellor Hitler
has conferred with Premier Mussolini
at Venice. Protests, even threats, have
come from every major creditor fol-
lowing the announcement of the mora
torium on Germany's debts. Friction
in the Nazi ranks came before the pub
lie during the week with protest of Won
Papcn. Instead of a serious rupture,
Germans believe the open controversy
marks the beginning of a change of
policy on the part of the Nazis. Hitler
has had trouble with the extreme
wings of his party for some time. This
move seems to indicate that moderateS
are winning.
Business generally is disturbed, de-
spite several encouraging developments.
While most industries reflected produc-
ton gains in both April and May. the
number of unemployed who were ab-
sorbed in May totaled only 10000, in
comparison with 10000 in April
While the transfer moratorium will
allow Germany to accumulate foreign
exchange, the threat of mark devalua-
ton is only temporarily removed.
There is still little hope that Berlin
will be able to avoid the move even
tually. Perhaps it can be deferred
until Fall.
Though the number of unemployed
at the end of May was scarcely half
the total at that time in 1888, the
Government, in order to carry out its
promise to reduce this number below
the two-million mark before August
l, is being forced to plan an extern
sion of the relief works already under
way. and is bringing pressure to bear
on farmers to engage urban unem-
ployed for the crop season.
Commodity prices which have been
sagging ever since January have re-
sumed their upward movement. The
general wholesale price index. which
declined from 96.3 in January to 95.8
in April, showed slight increase in
May, when it advanced to 96.2.
This small recovery does not. how
ever, adequately reflect the actual
price trend. But for stringent Gov
ernment regulations with a view to
preventing any imitation of the pres
ent price level, the price advances Of
the past month would have been much
more pronounced in response to a
gloomy crop outlook and the price
materials imports"
London Circles Uneasy.
LONDON.-"When the government
made its prompt and firm reply to
Berlin that a complete debt mora
torium would be met in Britain with
a conscription of German balances
through a clearing house, financial
London's first reaction was one of
pleasure. When someone called to
light the fact that Germany's favor
able trade balance with the United
Kingdom amounted to 38, million
marks, but that the balance with the
empire as a whole was II million
marks against Germany, fears of a
trade war developed.
''In the two years since the Ottawa
conference, where members of the
empire pledged themselves to buy first
from each other, then from the out
side world. Britain has learned that
the plan has it's bad as well as its
good points. Most striking evidence
of the problem it can create came a
few months ago when the United
Kingdom decided to combat japanese
textile competition with a system of
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