Evening star., 1934-08-12
Short Crops Are Expected
to Claim Most of Reich'S
Attention.
BRITISH TEXTILE MILLS
LOSE GERMAN TRADE
Exchange Tangle Likely to Block
Shipments Longer Than in
Case of France.
Special Dispatch TO The star.

Special Dispatch to The Star.
NEW YORK. August il.-Cables
and radio dispatches to Business
Week give the following survey of
business abroad for the week ending
today.
LONDON THE long holiday last
week end helped to dispel recent pes
simism, but political uncertainty on
the continent will continue to keep
alive a certain undercurrent Of un-
certainty. Fear Of war in the near
future is dispelled by the growing
menace of famine this Winter, par
ticularly in Germany, which focuses
all Nazi energies. While the situation
probably can be handled. various Eu-
ropean countries are uneasy because
Of possible social upsets before the
cold weather is passed.
"Briain's textile areas are feeling
now the ban on imports into Germany
Just as France felt them last week.
In the case of France. the ban was
lifted. In the case of the British, the
inability of the German importers to
secure exchange with which to pay for
the goods is causing the dif1culty.
More than $4,000 Lancashire cotton
workers are affected Credits already
owing the British exceed $500 900. SO
it Is not likely that further credits will
be granted until these are lquidated
or some plan to pay them Is arranged.
Both in Britain and France the
view gains strength that it is now only
a question of time-or possibly Of oc-
casion-before the gold countries are
dragged OF gold. There are actually
no new signs of this change. but the
general economic position in France,
Holland, Switzerland and Belgium
makes long retention of the stand
ard seem extremely unlikely"
Paris Confidence Revives.
PARIS.-"After a bad week caused
by the unfavorable political develop
ments both at home and abroad, and
by the heavy selling Of shares on the
Boarse to cover speculative losses, the
announcement of the closing of cash
subscriptions on the government loan,
and publication of the treasury re-
port for the second quarter brought
some return of confidence.
Optimism did not come from the
revelations of the Treasury's position
so much as from the fact that fears
are allayed In the announcement.
Following long precedent of month
ly announcements of the Govern
ment,s financial position, the finance
ministry has failed, since March, to
make any announcement and, with
business slumping badly in that pc
riod, there were growing fears that
a very bad situation was being hidden
from the public. The second quarter
statement issued this week reveals
that revenues have dropped nearly
$I00, 600, 900 below estimates. At this
rate the total for the year would
probably exceed $3.50, 900 ,000 but
since this is approximately the rate
of amotization at the present, the
budget could be rather easily bal
anced If amortization were discon-
tinued until business recovery pro-
vided larger revenues in the form Of
taxes.
Another reason for the better
sentiment this week is the settlement
of the trade negotiations with Ger
many by which the German import
ban is partially lifted on French wool.
On the prospect that combed wool
will soon be moving again in normal
volume towards Germany, textile
mills in the great northern region
around Roubaix- -Tourcoing have re-
opened and are operating at nearly
60 per cent of capacity"
Marks support Seen.
EERLIN.-''With the assumption
of a complete dictatorial role by
Hitler following the merging of the
Offices of President and chancellor,
and the investing of DR.. Schacht,
head of the ReichSbank. with COM
plete dictatorial powers over business,
it is likely that Germany will attempt
to hold the mark at its present arti-
ficial level. despite recent fears. Ex-
port subsidies, in the form of an in
crease In the discount on registered
marks acceptable for payment of ex-
port balances, will probably be ex-
panded for DR.. Schacht admittedly
believes in this system rather than
devaluation of the currency. In this
respect, Germany is following the
Soviet plan of building up a dual
currency system, with an internal
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