Evening star., 1934-06-17
REICH WILL SEEK
FOREIGN TRADE ON
BARGAINING BASIS
Nazis Must Regain Lost
Commerce to Help Home
Industrial Plants.
PARTIAL CROP FAILURE
FEARED IN DROUGHT
Grain Harvest May Be Reduced
as Much as 0ne-Quarter-Feed
Shortage Faced.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June l6.-Cables and
radio dispatches to Business Week
give the following survey Of business
abroad for the week ending today.
BERLIN-"The Nazis, If they are
to continue to help domestic indus
try, must revive foreign trade. The
domestic market is pretty well sat-
urated. Extreme nationalism else
where, and general antagonism re-
Gently to the Hitler government, have
quite effectively reduced German ex-
ports. Russia, in particular, has been
lost as an important customer. The
Nazis now have the country's foreign
trade very closely in hand. 1t Is OBJ
viouSly their aim to bargain the i'm
portant German market (the largest
in Europe numerically, except Russia.
and dependent on foreign supplies of
almost every important industrial raw
material except coal and iron) to
those who will buy German goods in
return. That bargaining will soon
begin.
ITO Germany's other troubles has
been added in the last few weeks the
threat of partial crop failure due
to drought. Although not as serious
as in the United States or in South
eastern Europe. the drought is serious
in some sections of Germany. OFF,
cial estimates attempt to minimize the
losses, but according to reliable pri-
vate information, as much as one
quarter of the grain crop may be con-
sidered lost. The hay crop is partic-
ularly bad, and the fodder situation
seems to cause the greatest worry
among farmers.
Supplies Held Back.
"Since trading in wheat and rye is
permitted only at prices fixed by the
government, they do not reflect the
actual position, although flour mills
are finding it difficult to cover their
ers are holding back supplies. On the
other hand. unregulated oats and bar
ley prices clearly reflect the market
position. Since early May they have
advanced 80 per cent.
In the case Of oil cakes, there was
a special reason for a sharp advance
in prices. The Grain Monopoly
Board, which controls both the do
mestic output and imports of oil seeds
and oil cakes, has during the last year
throttled foreign oil cake imports to
one-fifth of their normal volume
Daily farmers were therefore de-
pendent almost entirely on domestic
oil cakes. At the end of May, the
Monopoly Board announced that it
would discontinue, until further no
tice, the okehing of new contracts
even for imports of seeds. Signifi-
cantly, this measure is motivated by
plans now under way to force the
countries from which Germany has
been buying oil seeds primarily Ar
gentina) to accept German exports
goods in payment for their shipments
on some barter basis"
London More Cheerful.
LONDON.-"Last weeks crowding
pessimism is disappearing. Industry
is more cheerful and the stock mar
kets have rallied, largely due to an
other batch Of encouraging company
reports. Only the more thorough
students of economics are perturbed
by the apparent lull in recovery, in
dicated by failure of the index of
production for several weeks to pull
itself upward.
Much stock market interest is
shown in the recent report that Wall
Street brokers with European con-
nections have had a conference in
New York to draw up plans for in
creasing the listing of United States
stocks in London and other European
centers. Cooperation by the London
Stock Exchange Committee would be
given and a wider market created If
there is any serious endeavor behind
these plans, although what move the
government might make to check a
possible outflow of capital remains
in doubt.
There seems to be no probability
of any early lifting of the ban on
foreign lending. but constant steady
pressure is exerted to hasten the re-
turn to a free capital market. In
formed opinion is still of the view
that no complete raising of the ban
will be achieved. but that selected
applicants will shortly be given ac-
cess as result of general trade bar
gains"