Evening star., 1934-07-01
BUSINESS AT LOW EBB;
REVENUES UNREPORTED
Business Tone in Britain Remains
Firm With New Security
Issues Well Received.
Special Dispatch to The Star.

within government circles and with
out. The rioting in various parts OF
France continues, with first Right
wing. and then Left wing parties TAX
ing the leadership. Last weeks seri-
Gus outbreaks at LOrient, which still
have not been quelled, were started
by the Front Commun,' group made
up of Communists and Left-wing So
cialists who opposed what they believe
to be a coming coup d'etat by the
Royalist working into power through
Fascism.
In Parliament, old Premier Dou-
mergue has been forced to pose a
vote of confidence again and again, re-
ceiving a majority only because he de-
clares If you obstruct me, / shall senC
you home 1t is known now that his
own cabinet is dissatisfied with the
procedure. M. Marquet, neo-SocialiSt
Labor minister and father of the
new public works plan which has
been mutilated to the extent that
Marquet said he was on the point OF
resigning, is the outstanding oppon-
ent Of general government policies.
Doumergue Appeal Wins.
Both Germain Martin, the minis
ter of finance, and Flandin, minister
of public works, almost came to blows
with Marquet and at one time a cab
met split was thought unavoidable
Only Doumergue's appeal to patriot
ism saved the day
When the new fiscal law came up
for debate this week 1t was discovered
to be little more than a robbing-Peter-
to-pay-Paul affair. Aimed to reduce
prices, it does, actually, little more
than shift the burden of taxation from
industrialists and the bourgeois class
onto the proletariat, who already are
suffering from a lack of buying
power.
Leon Blum, outspoken Socialist
leader, found plenty of support among
the radicals for his contention that
any price-reducing program which re-
duces the prices farmers will secure
for their products not only will be un-
popular with the agrarian electorate
but will eventually pull down the en-
tire French economic structure, for
current banking credits and govern
ment loans are based on the aSsump-
ton that farm prices will be main
tained. The Chamber listened to re-
peated warnings that France would go
through what the United States ex-
perlenced at the end of 1882 and the
beginning CT 1888 unless the present
situation is handled carefully. France
lacks the vitality and the psychological
makeup to stage a spectacular come
back such as has come about in the
United States in the last Is months.
Business everywhere is dead, and
the prospects for tourists trade are
dismal. No revenue returns have been
published since March, and nobody
dares to ask why"
London Trade Tone Firm.
LONDON.-"DeSpite the complica-
tions resulting from the German debt
issue, the business tone in Britain re-
manned firm this week. New issues
continue to be offered, and are well
received. Recent forecasts of improve
ment in the coal industry are evidently
justified. Powell Duffryn Steam Coal
Co., Ltd, important member of the
trade. has just announced that it will
increase its capital 100000 pounds.
Unemployment figures. due July 9,
are expected to show a setback due
to weather conditions, especially the
drought. Heavy rains in the last
week. however, have retarded work
in the construction industry.
Departure from London of Prime
Minister Macdonald for a three
months holiday has revived talk of a
general election, or at least cabinet
Shake-up. Best informed opinion Is
willing to admit the cabinet change
can be expected almost any time, but
general election is not likely before
1896 because of the India question" I"
Reich Reverses Drop.
BERLIN.-"Germa foreign eX-
change plight reached its climax this
week when the gold reserve of the
ReichSbank dropped below per
cent and DR.. Schacht announced that
foreign exchange would be allotted on
a day-to-day basis, depending on the
dIIlOuIlL WHICH DeCdHle dVdlldDlG LII IlAc
normal course of business. Not even
a minimum is guaranteed for essential
raw materials, though this matter may
be remedied before present supplies
are exhausted. Authorities estimate
that, in general, three months sup
ply is on hand within the country
Solvent importers are faced with a
problem of securing foreign exchange
to meet current obligations. The
whole maneuver is a part of the Nazi's
desperate program to bring German
foreign trade into balance. Having
gone to this extreme, the bargaining
is bound to be shrewd.
Despite early optimistic reports
from London that the negotiations
over a clearing agreement are pro-
crossing, Berlin is skeptical and fears
that Germany will be further isolated
before the matter is settled.
Numerous developments are de-
pressing business morale. One of the
most important is the serious crop
shortage due to drought The fodder
crop outlook is SO bad that farmers
are selling cattle at panic prices"