Evening star., 1934-08-19
Trend Favorable, but Fears
of Economic Distress on
Continent Persist.
HARD WINTER LIKELY
TO FORCE BOLD MOVES
Extreme Prophets Talk Of United
Action by Russia, Austria
=
and Germany.
Special Dispatch to The Star.

NEW YORK, August l8.-Cables ana
dispatches to Business Week give the
following survey of business abroad
for the week ending today:
LONDON.-"The last public holiday
of the year, the August bank holiday,
saw distinct rise in the general
morale of the trading and stock market
public. There was sudden uplift
that promises well for the late Summer
and early Autumn unless some new
catastrophe again upsets matters.
There is quite definitely an easier
feeling about the Germanic situation
for the moment, but there is the same
acute anxiety as to the position when
the economic blight really reaches the
mass of the people there. The more
extreme prophets of inevitable devel-
opments see a swing to Communism
that will bring Germany, Austria and
Russia into one bloc. If this Is brought
about by sheer economic force it is
difficult to see how the powers now
guaranteeing Austrian independence
will be able to exercise their guarantees.
u. S. Initiation Forecast.
"This potentiality is admittedly ex-
treme, but moderate opinion concurs in
the fear that the map of Europe can
not remain unaltered after this Winter
unless some very drastic change is
made in the economic policies of the
leading European states, especially
Germany. The British tempo is thus
likely to be governed by the desire to
make what hay is possible while the
sun shines, but not to plan any eco
nonic harvest after the turn of the
year.
THE silver move by the United
States has driven the dollar to the
gold export point and convinces Lon
don that President Roosevelt is intent
on exercising full inf1ationary powers.
This, Londoners reluctantly admit. rem
ders impossible any immediate at
tempt at world currency stabilization
and reduces the prospects for some
form of stabilization within even the
sterling bloc. Despite the pressure of
an influential silver party in England
particularly among the Lancashire
cturefs3, there is no expecta-
tion in well Informed London circles
that Britain will consider monetiga-
ton of silver under any circum-
stances.
President Roosevelt's triumphant
reception in the journey across the
continent to Washington is construed
in England as assurance of a contin-
uance Of new deal policies in the
United States, thus putting an end to
recent rumors in London that Ameri-
can business is about to be free of
restrictions on profit making"
French Markets Dull.
PARIS.-"French markets have been
inactive all week. Recent persistent
gold imports are attributed to activity
on the part Of the British Equalization
Fund aiming at sterling support at
time of seasonal weakness. Specula-
tive dollar sales following imitation
rumors from Washington also pushed
the franc up. Both dollars and ster-
ling were stronger late in the week.
Price indexes declined further dur
ing the week under pressure of the
governments deflation program. Bank
deposits for the first six months of the
year dropped per cent. The textile
industry is still severely depressed, all
business being on a hand-to-mouth
basis. France, normally producing
only enough wheat for home con-
sumption, but possessed with bumper
crops in recent years. is likely to have
crop this season 20 per cent below
the 1888 total, but still sufficient for
domestic consumption.
ut is understood in Paris now that
the Ford Motor Co., in its agreement
with Mathis for the manufacture of
Ford Weights in France, has con-
formed with the requirements Of the
French government that the rebuild
ing OF any equipment sent from the
United States will be done in France.
Ford is expected to have all engineer
ing work completed by the American
companies supplying the machines.
leaving only the rebuilding according
to blueprint to the French companies,
who will set up the equipment when it
arrives. The French Ford Co. re-
Gently reported loss for 1888, but at
the same time stated that every month
of 1924 had earned a profit"
Reich Business Quiet.
Business has been quiet
in Germany this week. Recent anxi-
ETY. regarding the possibility OF fresh
dollar depreciation is now calmed.
The July decline of $4,000 in the num-
Der of employed workers is further
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