Evening star., 1934-03-18
Creation of Bank to Make
Medium.Term Loans
Planned Soon.
CITROEN AFFAIR ADDS
TO FRENCH DIFFICULTIES
Troubles of Motor Company Re-
garded as Sign of Industrial
Crisis; Govt. Aid Forced.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March l7.-Cables
and radio dispatches to Business
Week give the following survey Of
business abroad for the week end
ing today:
LONDON.-"The British aren't
quite as far along as the Americans
and the Italians, with plans for
financial aid to small industries, but
London expects any day news Of
the official Inauguration of a new in
stitution for the granting of medium
term credit.
Nothing definite and official has
been released yet, but it is known that
it is planned to have the new credit
bank receive from customers of COM
mercial banks applications for ad-
vanceS on which it will act only after
receiving the recommendations of the
various banks passing them along.
Also, that it will take as security
mediumterm mortgages (Which or
dinary banks in Britain will not do)
and will keep its rate on advances
as low as that on ordinary bank adj
vanCes. 1t will probably have some
form of Treasury backing.
There is reason to believe that the
financing of inStallment purchases Of
capital goods will come within its
scope, but probably in the shape of
guarantees to the finance houses al
ready pursuing this class of business,
the new institution virtually acting as
endorser to approved customers. Cap
italization of the new bank is not
yet known"
Paris Troubles Grow.
PARIS.-"Economic conditions in
France are rapidly turning more un-
favorable. The recent Citroen affair,
in which the country's great auto
mobile company was saved from
bankruptcy only by government finan-
cial intervention prompted by the
necessity Of preventing the wide
spread unemployment which would
follow closing of the plants, is be-
lieved by many to be only the be-
ginning Of long series of industrial
crises in which the government will
be forced to intervene to prevent
financial collapse
Agriculture is equally a worry to
the government. Farmers are pro-
testing loudly to politicians that they
want bigger and better protection for
wheat. This protection would cost
the government more than can pos
sibly be raised at this time.
Financially, money rates are ad-
vancing to the point where industry
is unable to find new capital at rates
at which it can afford to borrow.
Following last weeks startling ad-
vance in rates in France, this weeks
railway loan, at the price issued. will
yield sc per cent besides being tax
free. And still investors hesitate"
Jobs Drive to Start.
BERLIN.-"March "a will become
a red letter day in Germany this year.
On that date Chancellor Hitler will
announce details of his new drive to
cut the remaining number Of unem-
ployed Germans in half.
Meanwhile, considerable satisfac-
ton is derived from the fact that
100000 jobless were put to work in
February, largely on government con-
struction projects. which had been
delayed by cold weather, but which
are being continued now in the un-
usually mild spell.
More important than anything
else, but not yet fully digested, is the
report from the minister of economics
of the appointment of a dictator for
German business, man who will CO.
ordinate all German industry on the
plan of the Italian corporate system.
Under him will be IL sub-dictators,
one for each of the divisions into
which all German industries have
been divided The plan came as no
surprise to Germans. for Hitler long
ago announced that German economy
would be modelled on the Italian
plan"