Evening star., 1934-07-22
Stability Of Gold Holdings
After Severe Strain Is
Encouraging.
POTATOES ARE RUSHED
TO MEET DAILY NEEDS
Produce Commandeered by Off
cials and Food Rationing May
Be Forced During Winter.
Special Dispatch to The star.

Special Dispatch to The Star.
NEW YORK, July 2l.-Cables and
radio dispatches to Business Week
give the following survey of business
abroad for the week ending today.
BERLIN-"There were favorable as
well as unfavorable developments in
Germany's economic crisis this week
THE stability of the gold holdings
Of the Reichsbank following the
drain which has continued seriously
for months and which carried the
gold cover to about 2 per cent? and
the decline, in May, in the imports
of raw materials indicate that the
governments embargoes on various
products and the severe restrictions
on foreign exchange are beginning to
operate. Added to this, the morator-
ium on service payments on the coun-
trys foreign debt-eXcept for conces-
sions which have been made to nu-
merous European holders of Young
and Dawes bonds - has made
marked improvement in the countrys
statistical position.
Seriously counteracting this is the
crop shortage. Potatoes already have
been rushed into the country to meet
daily demands. Surplus stocks of
most grains, carried over from last
year, are expected to cover the greater
part of the deficiency except for fod-
der This situation is critical for the
shortage is expected to cause mass
slaughtering of cattle very soon unless
remedied.
'The government is dealing firmly
with the situation. Crop prices are
being fixed to prevent proflteering.
Further, crops are being comman-
oeered by the government. Food ra-
tioning may be necessary before the
Winter is over. Germany, in many
recent moves, is following practices
established by the Soviets. Even all
these moves to prevent a crisis have
failed to remove the fears of the pub
lie which is buying stores of necessi-
ties whenever they can be secured"
U. S. Strikes Worry British.
LONDON. - Britain is genuinely
perturbed over labor developments in
the United States. The strike in San
Francisco, and serious threats else
where, began to create anxiety only
when London noted that Wall Street
is failing to respond to the apparent
economic advance in the United
States. London reasons that Ameri- /
cans are becoming alarmed over the
general labor situation. Added to the |
setback which has come in Europe |
following the German crisis, a break
in the upward trend in the United
States would be serious.
London is checking up on year.
end results as fast as they become !
available. Foreign trade is good, but
there is gloomy note in the sudden
increase in the visible adverse balance
in June. Exports were larger than
last year, with machinery, woolens
and beverages showing the largest
gains. Imports of timber, raw cot
ton, wool and non-ferrous metals
were outstandingly greater than a
year ago.
British Ford reports that domestic
business, particularly in the tractor
division, is improving. Imperial Tea
Co., selling through chain stores, re-
ports profits of f103.000 in contrast to
a loss of f6,400 in the same period
last year. This is a good example of
the big jump in retail purchasing
power. Other companies reporting
larger net profits in the fiscal year
lust ending include Anglo-Persian Oil,
j. & P. Goats, Boots, Pure Drug, Ed
mundson's Electricity and Shell
Transport. Only shipbuilders report
smaller, or no, profits.
Hopes in France Drop.
PARIS. - Premier Doumergue
again has broadcast a radio speech
along Rooseveltian lines. While he
is adored by the average Frenchman,
who admits that he is doing his ut
most to Straighten out the French
economic situation. faith in his abil-
ity TO combat existing circumstances
is growing less each day. Though last
nights speech was heard or read by
the entire population, rentes slumped
today and spectators again took an
active interest in gold-mining shares
for undoubtedly, though the French
are as determined as ever to stick
to the gold standard, the words by
Paul Reynaud in his recent speech
favoring devaluation are beginning to
take on significance.
In contrast to this spreading skep-
ticism, the 5000, o00. .OO0-franc gov
ernment loan is selling well, with the
prospect that it will be entirely taken
up in a short time"