Evening star., 1934-02-11
FRENCH MARKETS
REMAIN STEADY
Unrest Has Deep Roots in
Economic Troubles of
Nation.
epecial Dispatch to The Star.

special DlSpatcn TO Ine star.
NEW YORK, February 10-Cables
and wireless dispatches to Business
Week give the following survey of
business abroad for the week ending
today:
Paris.-The political crisis was pre-
cipitated here by the Stavisky scandal,
but this was only the straw that
broke the camel's back. A public,
disgruntled by the inability of parlia-
Inentary government effectively to
deal with such a situation. to balance
the country's budget. to formulate a
policy to lead the country out of the
depression which has been slowly
overtaking it. gave vent to it's feelings
Miners, unhappy over wage cuts
and disguised because the government
has failed to bargain effectively for
forced to take wage cuts when the
cost of living has not been reduced; ;
farmers, displeased with the govern
fnent's wheat policy, readily Joined
the protest
If one cabinet after another failed
TO bring order, perhaps it was time
to place the responsibility squarely on
the shoulders of a single man or a
small coalition. No Roosevelt or
Hitler appeared on the scene. A
coalition dictatorship is the result.
Steady Despite Riots.
Despite the turmoil. the Bourse has
remained remarkably steady. Do
fnestic shares and rents sagged
naturally, and there was some move
n1ent to foreign shares But the as
surance of the soon defeated Deladier
that the country would not leave gold
was enough to give new strength to
the franc and to the market.
Almost rs dramatic as the riots in
The streets Of Paris has been the flight
of gold from the vaults of the Bank
OF France. Trains and planes have
rushed the yellow bars to every port
from which vessels were scheduled to
depart for New York, Finally. it was
decreed that 48-hour notice must be
given for Withdrawal of gold. Do
mestic boarding has not yet increased
spectacularly.
1t is not forgotten that France has
been drawing gold from all the world
for more than two years. 1t is known
that the gold cover Of the currency
exceeds II per cent. where the legal
minimum is only 35 per cent. 1t is
known that the country has had more
than s3,200,000000 of gold in the
vaults of the Bank of France. The
drain will need to become much more
pronounced before an embargo will be
proclaimed. If the internal situation
improves, the drain will ease. If it
does not, France may be forced to
move quickly to protect the gold
reserves.
Berlin.-Short-t term creditors are
assembled this week framing a new
"stand-still" agreement It is not ex-
pected that final terms will be an
nounced until next week. but neither
creditors or debtors are asking for
any radical changes.
In the final deal last week with
long-term debtors. whose obligations
are partially frozen under a mora
torium, Germans granted certain con-
cessions under pressure The trans
fer compromise raising the price paid
for scrip means virtually an increase
in the interest cash payments from
% per cent, which was first offered,
to II per cent. Germans declare, how
ever, that the deal covers only three
months and that when creditors meet
IN April important interest reductions
will be demanded.
Business is seasonally less active,
but the automobile. radio and furni-
ture industries are improving Securi-
ties are firm
British Trade Expands.
London-Other business continues
to expand in a satisfactory manner.
Unemployment was uD for January,
but this is due to seasonal influences.
It Is expected now that a steel re-
organization will be announced on
February %, though some important
interests are still baking any all
round agreement. Failure to reach a
wage agreement in the rail dispute is