Evening star., 1934-01-14
REICH CONFIDENT
DESPITE EXPORTS
AND DEBT PROBLEM
Concessions to Britain Likely
as Conference With
Creditors Nears.
PARIS KEPT'IN UPROAR
BY STAVISKY SCANDAL
Actual Loss Not Expected to Be
Large, but Damage to Confidence
Already Is Apparent.
Special Dispatch to The Star.


NEW YORK, January 13.-Cables
and wireless dispatches to Business
Week give the following survey of busi-
ness abroad for the week ending today: /:
BERLIN.-Despite the export and in
terest transfer problems. business con-
fidence has gained this week. Stock
market activity has supported the trend.
Germany's whole debt problem will
be aired in the next two months. On
January % long-term creditors will
meet in Berlin to protest the decree by
the Reichsbank that Germany will be
able to transfer only 80 per cent of the
amount due this Spring in interest and
amortization instead Of the SO per cent
transferred last Fall. Protests from
Britain, the United States and Sweden
caused DR.. Schacht to agree to the
meeting. Germans expect that conces-
sions made to the Dutch and Swiss will
be extended in some form to the Brit
ish. All three markets have an unfa-
vorable balance of trade with Ger
many.
The problem is one of first economic
importance, but no informed European
is unaware Of the political significance
of the latest developments. Britain and
Holland are Germany's two greatest
export outlets, each taking about 10
per cent of Germany's exports every
year. France usually stands in third
place. with the United States trailing
in fourth, sometimes fifth, place.
In February. short-term creditors will
meet in Germany to discuss prolonga-
nf he
der which their credits are frozen by
agreement in Germany. It is likely
that Germany will try to convert more
Of these credits into regular long term
bonds. These debts were reduced last
year from to 21a billion marks by
dollar depreciation and liquidation.
Scandal Stirs Paris.
PARIS-France has been able to
talk of nothing this week but the Sta
visky scandal. Actual financial losses
large, but reprecussions on the govern
ment and on public confidence already
are evident. Paris has been in an
uproar all week.
The fraud occurred in Bayonne.
where Stavisky operated through the
Bayonne Municipal Credit Bank Sta
visky caused 0,000 900 francs Of false
bonds to be issued in the name of the
bank. Government officials have from
time to time recommended the purchase
Of these bonds by insurance companies.
Other officials who knew of Stavisky's
past criminal record are supposed to
have protected him. And finally, after
the crash and revelation Of the rotten
situation, it is questioned whether he
died by hts own hand when conered by
the police or whether he was shot by
agents for some of the worried digni-
tarieS who feared what he might tell.
Actual financial losses can be abb
sorbed, but the shock to public conf
dence will have widespread effects. The
Radical Socialist party, some of whose
members are supposed to have protected
Stavisky. has suffered a tremendous loss
Of prestige. The government may yet
fall because of the matter.
Quotas, and the new Soviet trade
agreement, are the only other matter
important enough to attract attention
during this exciting week. Under pres
sure from Washington, France has con-
tinued the qouta allotments for the
United States as Of last year, in re-
turn for huge increase Of the United
States wine import quota. Britain has
already caused complications by ask
ing for similar treatment.
The Soviet agreement has been ini-
tailed, but the details have not yet
been announced.
British Pleased.
LONDON.-British business Is high
ly pleased with the pressure which
the government has brought to bear
on Germany in the transfer deal
Creditors, individually and collectively,
having failed to get satisfaction in
Berlin, they urged the government to
take action, which 1t did. The result
is the calling of conference of credi-
tors in Berlin on January %. It is
confidently believed in London that DR..
Schacht is ready to make some con-
cessions to British bondholders. Ger
many would be loath to incur the
enmity of the British at a time when
she Is bargaining for rearmament and
worried over the loss of any portion
of any big market such as Britain.
Recovery sentiment is still strong.
Stock markets are active with prices
moving slowly upward. Year-end an
nouncement Of bank dividends were
Unexpectedly good. In no case was
the rate reduced, and in several cases
1t was increased. The new issue mar
ket is active. with a good response from
to come along soon, including new
capital for road transportation under
takings.