Evening star., 1934-09-23
Retail Volume Encouraging.
Gloom Abroad Fails to
Dampen Hopes.
PARIS IN CLOSE TOUCH
WITH PUBLIC REACTION
Financing Problem and Prices
Absorb Attention of French
Leaders as Elections Near.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 22.-Cables
and radio dispatches to Business Week
give the following survey of business
abroad for the week ending today:
London-"Gloomy foreign trade re-
turns for August failed to dampen
business enthusiasm seriously. Too
many other reports are favorable.
Retail trade, for instance, Is en-
couraging. The July trade gain Of 3
per cent, reported last week, has been
studied in the meantime and has
produced some interesting sidelights.
Britain's retail trade carries on at a
much evener pace than retail business
in the United States. Englishmen
were shocked when washington re-
leased recently results Of the census
of 1888 business, showing that retail
sales had dropped nearly 48 per cent
below the 1929 level. In Britain avail
able data show that retail sales last
year we're only 8.8 per cent below
1890 but that department stores sales
alone were l07 per cent below the 1929
high.
Chain Stores Slower.
"Chain stores and co-operatives,
though they are recovering their vol
ume more slowly than the department
stores, are paving handsome profits.
Woolworths. Ltd, returned a profit
last year of more than f4,500,OO
(about s22 $500 00O).
Lewis, Ltd, one Of Britain's Oldest
retail businesses, returned profit OF
more than s3,8OO,OOO. oR. H. Macy
e. Co.. in New York, reported profit
of s3,O30.OOo for the same period)
The two conversion loans offered
on the London market recently-for
Argentina and Nigeria-have been
favorably received. The Nigeria con-
version from 3i2 per cent to per
cent confirms the view that gilt
edged yields are rapidly falling to the
2l2 per cent level. Also on the money
market. discount rates have fallen,
making it possible for the Govern
ment to borrow cheaper on treasury
bills. thus fortitying the exchange
equalization fund"
Paris Faces Financing.
PARIS-"France has no planned
economy. but French politicians make
no move these days without careful
consideration Of possible public re-
action.
France is confronted with two
troublesome problems. Nearly 10000
600, 1000 francs of government financing
must de handled between now and the
end Of the year: as far as possible
the government must smooth public
resentment to recently falling grain
prices despite maintained high cost
of living before the cantonal cleo
tions which are to be held the first
week in October.
TO make the situation difficult for
the government. there has been
growing demand in France for franc
! devaluation. Industry has been slump
ing badly all year. With exports de-
clining rapidly, one group of manu-
facturerS has advocated devaluatlon
of the franc as means of regalnlng
lost markets. Former Finance Min
lister Renault has become the spokes-
man for this group and, in the last
five months, won considerable
following
Confidence Sought.
Confronted with the necessity Of
refnancing maturing obligations this
Fall, Paris has found it wise to take
several steps directly to boost public
confidence. The budget for next year,
when it was announced this week,
showed cuts in expenditures of more
than 10 per cent. There we're no tax
increases and no new taxes. The
finance minister prefaced his budget
announcement with the declaration
that France cannot consider de-
valuation
Further to win over the public,
government officials are expected to
announce very shortly renewed sup
port of the artificial grain prices Cor
the farmers), and a renewed attack
on the cost of living for the urban
population).
Determined to resort to every