Evening star., 1934-07-08
HITLER MOVE APT
TOBRING CHANGES
FOR REICH TRADE
ChanCeIlor'S Power Grows
With Defeat of NaZi
Extremists.
Special Dispatch to The Gar.

NEW YORK, July Gables and
radio dispatches to Business Week
give the following survey of business
abroad for the week ending today.
BERLIN.-"Politica developments
overshadowed everything else in Ger
many this week, though, because most
of them were executed SO rapidly and
without audience. business continued
to function more or less normally.
There is no question that the effects
will be felt Soon and for long time.
Failure of the second revolution
has discredited certain elements of
the Nazi party, but has greatly en-
hanced Hitler's personal prestige
among the masses both inside and
outside the party. Also expulsion
of the extreme elements from within
the party leads Berlin to expect
more moderate policy in the future.
No change in Nazi economic policy is
indicated yet, but removal of the
radicals NAV bring some important
changes as soon as the situation clears
up.
More Immediately disturbing to
business is the foreign exchange out
look With Germany importing more
goods in both April and May than the
country sold abroad, the amount OF
foreign exchange likely to be avail
able i'll the next few weeks to meet
payments of commercial debts will
be insufficient to cover demands, and
German importing firms in good
financial standing are wondering how
they shall meet their obligations.
AT the same time. the new day-to-
day ratiOning of foreign exchange, in
addition to the various restrictions
which have been set up on the import
of raw materials, is causing increasing
| uncertainty. Supplies on hand are
adequate for the next few months
in most cases, but most industries are
in the habit of providing for future
needs further in advance than three
months.
1T is significant that one of the
duties impressed on the newly ap-
pointed commissioner of raw materials
is the maintaining of Germanys
standards of quality for export goods
despite the material shortage and the
pTeSSuTe 10 USE SuUIlluICS'
London Trade Unchanged.
Business in general is
unchanged. Outstanding developments
are the partial restoration of trading
confidence after the recent wave of
pessimism, the activity of new in
duStrial share issues, satisfaction with
the trade pact with France, and worry
over the German position.
'Hitlers drastic purging of the Nazi
party in Berlin is regarded in London
as greatly strengthening the Nazi
regime but it means that henceforth
much more depends on Hitler, the
man. than Hitler, the spellbinder
| London believes that the internal split
will make Hitler more amenable to the
| opinion of various foreign powers and,
| free from the demands of extremists,
| will meet problems involving other
| nations more moderately. Beyond this,
| London feels it is too soon to specu-
! late. Markets have reacted only mod
eStly so far because of the natural
precaution of dealers to prevent panic
selling.
Stock market activity continues
high with strong flow of new issues,
including several new gold mine offer
ings. following the introduction OF the
! new gold law in South Africa designed
! to encourage rapid exploitation and
| development of new mines. Continu-
| ing excellent company reports are
| boosting the industrial market. Riddle
Motor Services, Ltd, serving the de-
pressed Lancashire region and the
! lake district holiday centers, reported
record profits and prophesied better
earnings in the coming year.
Political friction between Ireland
and Britain has not eased. The Irish
now are taking active steps to foster
economic nationalism. A company
financed by Irish Free State investors
has been formed to trade between Ire
land, Germany, Belgium and Holland.
The venture is under the control OF a
Dublin shipping company which has
supplied the first three ships. Three
more have been bought from the
Ulster Steamship Co., and with them
the rights previously enjoyed by the
Ulster company of certain carrying
trade to European ports. The COM
pany is called the Saorstat & Conti-
| mental Steamship Co."
Paris Fiscal Bill Passed.
PARASITIC issue between de-
valuation of the currency and def1a-
ton of prices has at last been
definitely placed before the nation
| thanks to the speech by Paul Rey-
maud, ex-finance minister and leader
of the conservative group in the cham
Der. The government has finally sue
/ i iAr e. -