Evening star., 1934-11-25
Foreign Capital Is Branch
ing Out to Investment
in Industry.
FIVE LONDON ELECTRIC
CONCERNS CONSOLIDATE
France Settles Under New Gov.
ernment, but Other Factors Are
Influencing Business.
BY Cable TO The Star.

BY Cable to The Star.
LONDON. November 24.-This week
the PLETHORA of idle money pushed
gilt-edged securities to peak levels and
even overflowed into industrials. II
company reports continue to be as en-
couraging as they have recently,
money is likely to seek investment in
industry. Humber (automobile), Sus-
sex Brick and Durham Steel were the
companies issuing optimistic reports
in the last few days.
The opening of Parliament caused
only small stir. Business in the
present session is likely to be confined
to the India question and to the bud
get. 1t is generally believed in the
city that the treasury is endeavorlng
to force silt-edged rates to 2Ia per
cent when, after a few smaller con-
versions are completed, big slum-
clearance loan will be floated.
Five London electric distributing
companies have formed a Central
London Electricity Distribution Com
mittee for uniflcation OF the COM
panies and, possibly. to bring about
merger at some later date. This IS
regarded as very significant in view OF
other unification moves in steel, rail-
ways, cotton.
PARIS.-France has calmly settled
down under the new government, but
other factors are influencing business.
Rentes. after booming to new highs
following the organization OF the
Flandin government, reacted this week
on the rumors of German armament
totals and the realization that the
new French cabinet. no matter how
eager to cut expenses. could not re-
duce military expenditures. Looming
over the future. also, is the Saar Ques-
tion, which will be shadow over buSi-
ness until in January, when the voting
takes place.
French business shows no sign Of
reversing the slow downward trend Of
recent months. Iron and steel pro-
duction are down, with the decline
in pig iron production for the first
nine months per cent below the
same period of last year. Steel output
in the same period declined 8 per
cent this year. The chemical and
woolen industries continue to carry on
at reasonable levels, but other textiles
and the automobile industry are bad.
BERLIN.-The relapse OF industrial
activity in Germany has been con-
firmed by the release from the Bureau
for Business Research Of revised" in
dustrial production indices for july
September, 1884. They show con-
tinuous decline from the peak figure
of 897 in July to 87.4 in August and
863 in September. Influenced by re-
striction of textile production, con-
sumers' goods industries showed still
greater decline. the respective figures
for the three months being 97.9, 93.3
and 89.7.
II the general production index did
not decline more than by per cent,
this was due chiefly to continued brisk
building activity. The building index
jumped from 77.6 in August to 1853
in September In line with the up
swing Of building activity the produc-
ton Of household goods also showed
substantial gains. Public construction
contributed materially toward the alb
sorption Of additional labor. The
number Of workers employed in road
and canal construction rose from
367, 900 at the beginning of July to
424, 900 early in October. More than
rs 900 men were engaged in the con-
struction of Hitler's super-auto roads.
The fact that the revival of building
activity played such an important role
in preventing more rapid fall of the
general volume of industrial produc-
ton suggests that a sharp setback
might reasonably be expected when
the cold season sets in. Anticipating
this possibility the federal unemploy-
ment board has raised the amount of
daily subsidy paid to municipalities
for each worker engaged on emer-
gency works from 2l2 to 3 marks.
Business is increasingly scared by
the stubborn policy of price debating
under pressure from the price die
tator." The pessimistic appraisal of
its adverse influence on corporate
earnings is reflected in the depressed
stock market. Most noticeable this
week was the sharp drop in brewery
shares following the drastic cut in
beer prices in Bavaria.