Evening star., 1934-10-28
Gravity of Situation Seen
With Only Three Months
Allowed for Action.
BRITISH HAIL UPTURN
FOR HEAVY INDUSTRIES
Dividends and Plant Extensions
Show Trend-French Trade
Remains Sluggish.
Special Dispatch to The Star.

Special Dispatch TO The Star.
NEW YORK. october 27.-When
France, Belgium, Holland, Switzerland
and Italy finished their conference at
Brussels at the end of last week,
almost nothing had been accomplished
to assure either the participants or
the outside world that the gold-bloc
countries could indefinitely remain on
the gold standard, the European News
Bureau of Business Week reports in
its issue today.
"They issued another joint state
ment that they definitely would not
abandon gold" the report continues,
but they allowed themselves only
three months in which to work out
methods of expanding trade within
their own group.
Critics see in this an acknowledge
ment that something must be done
promptly If their currencies are not
to depreciate."
Other cables and radio dispatches
to Business Week give the following
survey of business abroad for the week
ending today.
British Dividends Paid.
LONDON. was cheered
again this week by further evidence of
a return of prosperity to the heavy
industries. Firth a. Brown, tool manu-
facturers, plan to pay three and one
half years arrears in preference divi-
dends. Babcock e. Wilcox, engineers,
have approved large extensions to
their plant, necessitated by heavy
orders.
Before. the goldbloc meeting.
sterling rapidly appreciated. After
the meeting and reaffirmation Of a
determination of the group to remain
on gold, the pound fell sharply. The
opinion Is widespread In financial
London, however, that gold-bloc plans
may not withstand the pressure Of
circumstances. Belgian and Italian
gold reserves are diminishing. and
France and Holland are dependent on
the trend of politics.
1.-The recent tightening-u Of Stock
Exchange regulations. not involving
actual alteration Of the official rules,
Is keeping highly speculative issues
down"
French Trade Sluggish.
PARIS.-"Because French business
remains sluggish and living costs high,
Frenchmen are ready to criticize their
government. When Doumergue agreed
to head a coalition crisis government
last February, this unrest was
tempered for a time. Within the
last few weeks it has revived.
I'm the meantime, Premier Dou-
mergue is stalking his governments
future on constitutional reforms which
many Frenchmen agree are necessary,
but which there is some fear the
Senate will balk. Chief obstacle is
his demand that he be given the
power without the consent of the
Senate. as now is necessary by law
to dissolve the Chamber of Deputies.
This power he is asking in order to
speed government action in time of
crisis. He also wants to remove the
chambers power to initiate expendi-
lures. In the last few weeks some
fear that the premier will not be able
to put his program across has de-
veloped. This is the uncertainty
which is now influencing the exchange
value of the franc and the downward
trend of French business activity"
Nazis Face Big Task.
BERLIN-'Dream of the Nazis
when they came into power was to
make Germany just as self-sufficient
as possible. The more of her needs
Germany could supply at home, the
less the country would need to worry
over foreign exchange and trade
barriers and the onerous terms of the
'usurers' When it is remembered
that Germany, between 1926 and 1882,
never supplied more than As per cent
Of domestic fat consumption, So per
cent of the eggs, II per cent of the
fruit, 80 per cent of the vegetables
and SO per cent of the beans and peas,
the size Of his task ahead is evident"