Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-05-13
Fears England Might Pay
and Bring Awkward
Situation.
BRITISH AWAIT TENSELf
TRADE-WAR RESULTS
Approval of Action Against Ja-
pan Is General, but Many
Doubt Effectiveness.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 12.-Cables and
radio dispatches to Business Week give
the following survey of business abroad
for the week ending today.
Paris great confusion exists over
the Interpretation of the new john
son law in the United States affect
ing loans to defaulting nations. Even
the Cummings Interpretation with re-
gard to accepting the token-paying
countries as non-defaulters has done
nothing to persuade France of a
change from previous opinion. The
chance that France will meet the
next war debt installment, even par
TALLY, is entirely doubtful although
Herriot, who always urged France not
to default is again member of the
government. But since the last time
he was a cabinet member his prestige
has been greatly reduced and it is
unlikely his urging will bear much
weight with Parliament.
THE greatest fear in France is that
England may possibly be stigmatized
by the United States as a defaulter,
Io1ohlS bOAiOOli EOooibil W pay al hbAA
and in turn claim payment OF all
debts due her by France and other
European countries. thereby placing
France once more in an awkward
situation. The French stand is the
same as previously voted in Parlia-
ment: France definitely refused to
pay even part of the war debt payment
due the United States so long as final
and definite settlement is not con-
Guided with special consideration being
given to the situation created by the
Lausanne accord. which allowed Ger
many to cease debt payments.
Securities Tend to Ease.
with Parliament converting on May
Is, and the Radical Socialist party con-
vention being held over the week end.
some feeling of nervousness has been
making itself felt In the last few
days resulting in an important retro
erosion of rentes, bonds and indus
trial share prices. Two factors are
of most Importance: ID Will the
Radical Socialists be able to reunite
the right and left wings of their party
and reform a cartel with the Social
lists? and 90 will the Deputies and
Senators pass favorable judgment on
recent economic decree in the face of
the knowledge that they must soon
face their electors. most of whom will
be called upon to accept important
sacrifices if these recent DEGREES are
sanctioned?
The franc is moving favorably
relative to the other gold and nom
gold currencies. and this is likely to
result in an even greater influx of
gold in the coming few weeks. On
the other hand. boarded wealth is
gradually coming out of hiding and
affording ample liquid funds for the
Treasury for the time being, making
it unnecessary to float a new loan as
vet. Business. however. is extremely
dull everywhere but living in the ex-
pectation of better times when the
new economic DEGREES get to working
and living prices are lowered to the
point where France will again be able
to compete with foreign countries in
the worlds industrial export markets"
British Are Anxious.
LONDON-"The British are tense
this week waiting to see what is going
to happen in the trade move against
Japan. Approval is general but there
are manv who doubt the effectiveness
Of the move, since the empires bal
ance of trade with Japan-taken as
a whole-is unfavorable to the jap
anese.
The tendency to boom in some sec
lions of the stock markets has been
checked by restrictions on carryover
facilities. which have shaken out the
speculative bulls II is more than ever
apparent that Britain is striving to
clean up speculative activity without
recourse to legislation The Stock
Exchange Committee by Tightening
the administration of existing rules,
and the joint stock banks by charging
unusually high rates of interest for
fortnightly loans on speculative stocks
are the main agents Refusal of the
committee to afford permission to
deal in new issues which are at all
overcharged with preliminary expenses
by their promoters has achieved
marvels. The menace of a rush of
wildcat gold ventures and empty
speculative industrials has been met
firmly, and ended.
'First-quarter indicators fer the
country's business are available now
and reflect some striking gains. only
few recessions. Compared with the
first quarter of last year, postal re-
ceipts we're up per cent; volume of
coal mined 6 per cent; pig iron out
put SO per cent, and crude steel pro-
duction 48 per cent; electric output II
per cent: rayon production "a per
cent; and crude rubber imported for
Sc per cent The number
of unemployed fell $4,000 in April,
bringing the total $4,000 below the
figure for one year ago Industries alb
sorbing the largest number of workers
are building, shipbuilding. engineer
ing, iron and steel. tailoring, dis
tribution, transport, and hotels. Actual
declines in the number of employed
were registered in the coal, cotton and
WO0l industries