Evening star., 1934-09-02
London Believes American
Silver Plan Has Closed
Sterilization Door.
DOUBLE BASIS EXPECTED
TO PREVENT AGREEMENT
Paris Is Worried by Increasing
Shipments of Gold-Sees Plot
Against Franc.
Special Dispatch to The Star.

NEW YORK, Setember Gables
and radio dispatches to Business Week
give the following survey of business
abroad for the week ending today:
LONDON business tone
is good and stock markets lively, de-
spite underlying fears Of a possible
uSso-JapaneSe war, of trouble in
the Saar and of a strike in the Welsh
coal fields, where the miners today
will give a months notice Of termi-
nation Of existing agreements.
1.-The good reactions are the signs
Of imperial recovery. including the
South African repayment Of the war
debt, not due until 1915; a balanced
budget in New Zealand, a favorable
Australian trade balance and reports
of Canadian progress.
These are held largely due to Brit
aims own recovery following the
abandonment of the gold-inStituted
tariffs of 1881, which, however, may
not look so good when this impetus
is exhausted Australia refuses to re-
consider the recent cotton duties de-
spite strong representations from
Great Britain, but where hardship is
proved, will admit the goods II they
enter Australian consumption on or
before November II. Northern steel
works have received Russian orders
for 1000 tons of boiler plates. all
goods to be marked with the ham
mer and sickle before leaving.
More Initiation Predicted.
1.-THE latest silver move by Wash
ington has convinced London rightly
or wrongly that the Roosevelt ad-
ministration is now set for q full
infiationary policy. British observers
have recently been convinced that the
American choice this Fall would be
between imitation and a swing left
to State socialism, either So-called or
| rechristened for popular consumption.
The secondary deduction drawn
by London is that the silver move
sets back any hope Of world restabili-
zation. Sterilization for the sterling
convoy and the gold bloc means
stabilization on gold. With the United
States on a double standard, agree
| ment becomes extremely difficult
SIIiCC IIlC C1lduCcS VI pcISuAu11l6 I1AS
! gold and sterling countries to adopt
silver are faint.
Britain, it Is true, has a strong
silver party, but not party strong
enough to swing both the national
| government and the banking system
The probability is that RooSevelt's
move will give a new impetus to the
party in Britain which desires to
! ignore America and to reach a Stabili-
zation agreement covering the empire
the sterling convoy with the Scandi-
navias and Argentina leading) and
the gold countries"
Gold Alarms French.
PARIS.-'Tncreaslng shipments o.
gold from the United States, which
carom off the franc and affect tn,
price Of sterling here, are causing con.
Germ and some apprehension The in,
tricate forces at work are regarded, a.
usual. as foreign plot against tht
franc and an effort to push France of
gold. The likelihood of American sill
yer purchases continuing for a timt
means to Paris that gold shipment!
will go on, because, although the silvel
is bought in London. gold cannot b,
shipped to England, because of Amer
ican regulations, but has to be received
in France. Francs which are paid fo
the gold are converted into sterling
tending to set up q new and unwel
come demand for London exchange
lowering the value Of the franc II
terms Of sterling.
Paris is calculating the possible ex.
tent of American silver purchases
The fact that these promise to be ulti.
mately limited is reassuring to thoss
who are not stampeded by appear.
ances and keeps the situation here
fairly well in hand.
In general, then, economic condi.
tionS remain unchanged and the
Bourse is improving slightly, particu.
larly in rentes. Unemployment, how.
ever, tends to increaSe slowly"
Reich Isolation Grows.
BERLIN-"Dr. Schacht's program
Of strictly adjusting imports to avail
able foreign exchange means admit
tedly further contraction of foreign
trade and greater economic isolation
with inevitable repercussions on worlC
trade. The reform of the ALLEGATION
system Is indicative Of tighter plan.
ming Of imports, with preferred treat
ment for indispensables, and indirect
export subsidies are likely to be ex-
tended. Particular stress is being laic
on the development of domestic sub.
stitutes for foreign materials to Absorb
the bulk of available funds at home
even at the expense Of the much-fa-
vored automobile road schemes.
Current industrial indicators are
receding, partly as result of raw ma
terial restrictions. The hope that in
dustry would absorb the remaining
100000 unemployed this year ha'
definitely vanished and the prevention
Of Winter rise in unemployment will
require disproportionate administra.
tive effort and greater pressure on pri-
vate business.
German export Industries are in
creasingly feeling the pinch of ex.
panding restrictions of raw materia
imports Manufacturers have no guar.
antee that they will obtain the ma
terials they require in the quality they
need and within the specified time
1t is possible that these difficulties
however great, are further exaggerated
by the Reich's comnetitors in the world