Evening star., 1934-01-28
Large U. S. Gold Purchases
Arouse Some Alarm for
Francs Fate.
REICH WEIGHS HOSTILITY
TO FOREIGN DEBT STAND
U. S. Interests and British Protec-
tive Plans Studied by Better
Informed Germans.
Special Dispatch to The Star.

Special IlSpdtCH 10 Inc star.
NEW YORK. January 27.-Cables
and wireless dispatches to Business
Week give the following survey of busi-
ness abroad for the week ending today:
LONDON.-"Nothing now can check
British recovery" That seems to be
the sentiment behind the present buoy
ancy of the markets. Only gold shares
have sold strikingly upward, but the
tone on the market as whole Is firm
and the public Is In cheerful mood.
London Is In fog on Roosevelt poll
cies, but there Is no fear. The govern
ment Is ready to raise tariffs If neces-
sary to protect the market during q
currency scramble, and the Bank Of
England is prepared to maneuver the
pound downward If it seems wise. So
far there Is no sign Of i'll effects from
the adoption Of the tariff and currency
depreciation tariff.
II there is uneasiness 1t is over the
large gold purchases on United States
account. 1t is feared that any heavy
United States will push france of the
gold standard, lead to currency chaos,
and, in turn, cause the United States to
concur on world stabilization at new
low gold PARTIES.
Germany'S creditors in Britain are
still smarting under the indifference Of
DR.. Schacht and the German authori-
ties to their protests over treatment in
the debt question. London Is definitely
talking Of foreign exchange control as
far as Germany is concerned If the
conference in Berlin this week fails to
bring some satisfactory solution, it will
probably precipitate action in London
to sequester British payments for Ger
man imports for use in meeting German
interest due to British creditors.
Reich Watches Antagonism.
BERLIN.-Growing foreign antagon-
ism to the high-handed manner in
ling foreign policy has not gone un-
noticed among the better informed Ger
mans this week.
The repeated request of the United
States Ambassador in Berlin for de-
tails OF German repurchase of foreign
bonds, and the request from President
Roosevelt that DR.. Luther, German Am
baSSadOr in Washington, visit the White
House and answer some of the Ques-
tions, are noted. So Is the rumor that
the British are seriously setting up an
exchange control institution to handle
German credits unless creditors are ac-
corded some satisfaction in the pend
ing conference Of creditors in Berlin.
Above the satisfaction of jingoists
that the country is once again directing
It's own destiny with a firm hand. there
Is certain dread over such complica-
the French to end their commercial
treaty with Germany, the appeal of vi
emma to the League of Nations (de-
spite the Intellectual moves by that body
in the last two years.. and the growing
rapprochement between Paris and Mos
cow. Foreign trade being as vital as
it is to Germany's welfare. all these
threats cannot be viewed calmly.
Two items in the December trade re-
turns are worth some attention. The
first is that exports to Japan and the
United States registered the largest
gains. The second is the marked in
crease in the imports of raw materials,
indicating pickup Of home industry.
Drastic tariff increases during the
week on leather and cotton goods point
to continuation of the extreme indus
trial protectionism which has marked
Nazi policy since Hitler came to power.
Paris Badly Shaken.
PARIS.-France is more shaken by
the revelations in connection with the
scandal than the government
or the business community are willing
openly to admit.
This accounts for the small progress
being made by the committee of the
Chamber of Deputies in its examination
of various sections of the new budget
bill. It helps to account also for the
mediocre response of the country to the
governments newest bond offering.
Even the country districts, usually in
different to such news and willing to
subscribe to anything backed by the
government, are absorbing the bonds
There is trouble as a result of this
new attitude. When the Chamber voted
3 month ago credits which would cover
treasury needs for two months, it was
confident that before the end of that
time the final budget would be passed
and the finance ministry would no
longer need to 60 to the country for
month needs. Now 1t Is un-
certain how long this hand-to-mouth |
policy will be necessary. Monetary
problems are also Influenced by the
United States. President Roosevelt's
yold-buying policies are not yet fully
understood. .
The climax Of the week came today
with the resignation Of the govern
ment and Royalist riots