Evening star., 1934-02-04
Only 3.5 Billion Francs Sub.
scribed for Five.BH.
lion Issue.
ENGLAND IS NERVOUS
OVER FRANCS FUTURE
U. s. Devaluation Action and
Tense Austro.German Problem
Also Watched.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. February 3.-Cables
and wireless dispatches to Business
business abroad for the week ending
today:
Paris.-Boulevards in Paris, Nice
Bayonne resounded this week to the
shouts of frenzied rioters headed by
the enthusiastic followers Of the Roy
alist party and eager to force a
change in the government of France.
They have been successful. The
Chautemps government has fallen
the first to 60 down since 1923 with
out an adverse vote in Parliament
Accusations against government Of
f1cials following the scandal In the
Bayonne pawnshop, and other irreg-
ularities in which dignitaries are in
volved. brought about the crisis.
France is faced with the most seri-
GUS situation in many years. A nom
descript government has been formed
by former premier. M. Daladier, but
no one believes that it can last for
long. The general feeling is that the
majority Of the members are mere op-
portunists willing to espouse any
cause for the dubious honor of being
in the cabinet. 1t seems now that,
II the present cabinet should win the
support Of the Chamber more public
demonstrations will be held and more
changes in government demanded.
Leadership Lacking.
Greatest Of all the present difficult
ties is the total lack of any political
leader in France who is able to set
up even a semi-dictatorship, the one
solution in the minds of many of
Frances present difficulties. No single
leader appearing, France hopes that
some one will emerge who will be able
to form a coalition sufficiently strong
to handle the present situation firmly.
indicative Of growing public dis
trust is the statement this week con-
cerning the first section of the treas
ury issue. which was offered to the
public during January. Only 35 bill
lion francs were subscribed out Of
billions. and it is generally under
stood that the major portion of the
offering will be forced on public in
stitutions and banks. since the public
is almost totally abstaining from pur-
chasing any of the bonds. The Sta
visky affair and the other public
scandals which it has brought to light
have shattered the confidence of the
masses in the government.
London Is Nervous.
London.-There was q break this
week in the confidence which has DOM
mated business for several months
England Is always nervous when the
Austro- German situation gets tense.
To this Is added now the fear that
the uncertain position of the French
government will cause a flight from
the franc. Finally, there is the pre-
vailing uncertainty over the effect of
the Roosevelt monetary policy.
F. c. Goodenough. chairman of the
Barclays Bank, probably summarized
the situation as the city sees it when
he denounced the commodity dollar
experiment in his annual address to
shareholders. He stressed the desire
OF the British that the world return
ito the gold standard and to indi-
vidualism Of past generation"
Young England is not thinking this
way at all. as Is evident In the grow
ing number Of simulated Fascist
groups. The trend of more youthful
thinking Is toward Planned Econ
omy, always spelled in capitals. Much
will depend in the next II months
upon how far the city still retains
its old power to sway the government
departments. That power has waned
enormously since 1881, but it is still
potent.
The attempt of Lord Rothermere to
swing his mass circulation newspaper
readers to Fascism goes strongly
forward under the plea that the
young men must have their chance
and that British Fascism is some
thing quite different from the Italian
and German brands.
Protection Promised.
No violence and no attack on Jews. |
trade unions, or Free Masons, Is
guaranteed by Rothermere, who is.
Of course, In a position to guarantee
However, the effect of this |
press campaign has been to put
Oswald Mosley on the political map, |
and to make the result of the next
three years hence-less |
certain than it was. The prospects |
as they affect business are now more
toward nationalism and self
sufficiency than they were, unless the |
Fascist rally splits the Imperial Right |
Wing vote and allows Labor or some |
form of revived Liberalism to snatch |
an electoral victory. If the fear of !
Fascism grows it will hasten the lag
ging reorganization schemes which |
have been long in hand without be-
coming real, such as the creation of |
the new Steel Association, and the |
creation in actuality of the new mid |
term credit bank for small borrowers. !
Another indication of the changing |
toward foreign business came
from the Shell oil Offices this week, !
when it was noised abroad that Shell |
is contemplating terminating its |
longtime charters on 80 Norwegian |
oil tankerS and building its own fleet. |
New tankers would be built in British |
yards over q period of eight wears. |