Evening star., 1934-04-15
BRITISH DISTURBED
BY REICH REPORTS
AND GOLD SHARES
Default Threat and Boom
on London Exchange
Are Unsettling. A.
INDUSTRY MAINTAINS
STEADY RISE IN WEEK
Home Trade Active, With Rail
Traffic Reaching New Peaks.
Speculation Watched.
Special Dispatch to The Star.

radio dispatches to Business Week
give the following survey Of business
abroad for the week ending today:
LONDON.-"If it were not for the
threat of a complete German default
on interest payments in the very near
future and for the newest boom in
African gold shares which got quite
out of control this week and unsettled
the investment market the outlook in
Britain would be bright.
Home industry is active; inquiries
numerous. Rail traffic is touching
new heights on all lines. and interest
in Summer cruises is mounting to the
joy of the steamship lines. Rumors
that the rubber restriction agreement
is all but completed has caused rise
on the share market Clearing bank
advances in March jumped ell 900 600
above the February total, which itself
was f7OO0,O0O ahead of January and
the first increase since 1881.
Stock market activity, in fact, has
risen TO levels where it is causing some
concern lest speculative buying of in
dustrials, rails and mines become too
great. Authorities are making every
effort to check speculation. The
Stock Exchange Committee has tight
ened its scrutiny of new issues and
the banks are raising their advance
interest to brokers and jobbers who
want cover for speculative purchases.
British recovery is still too precarious
to make false stock boom anything
b1,f III
France Cuts Costs.
PARIS.-"France has made her first
desperate move to ease the economic
crisis in the country. Initial step in
the Spring cleaning program now un-
der way is expected to save 1850 900 900
francs. The burden must be carried
by government employees and those on
the pension list. Income cuts range
from per cent to 10 per cent for
active workers, though the government
has promised TO cut living costs to
help ease the burden.
Government strategy scored a suc-
cess when Herriot and Tardieu, min
iSterS at large in the crisis cabinet,
were appointed to find ways of cut
ting the cost of living. Both are re-
spected; both are capable. Herriot,
as mayor of Lyons. met the challenge
promptly by annuling the fixed price
on bread, which Immediately reduced
the cost to the public by 10 per cent.
Grain circles in Paris already are
predicting that the minimum price
for wheat, when it is set this Spring,
will drop to almost a half the present
minimum rate fixed by the govern
ment
The necessity for the government
to obtain credit on the open market
obviates the possibility of any pro-
gram of vigorous deflation because
that would necessitate writing off
large sums of paper credits now car
ried by certain banks and big busi-
nesses on their books, and this in
turn would react on the Bourse.
Business generally remains dull
and unchanged, with political situa-
tons absorbing all interest"
German Jobs Increase.
BERLIN. When the unemplov-
ment data for March was released it
showed that Germany had absorbed
another $4,000 men in industry dur
ing the month, and reduced the total
number of jobless to exactly half the
total on April l year ago. Next move
in the Nazi labor drive will come some
time after May l, when a huge DEM
onstration will be staged and when
Hitler is expected to announce new
plans. There are rumors that these
NAV include demands that lahOrerc ",
some classes accept lower wages in
order to improve the country's COM
petitive position in export markets
and spread work among the people at
home.
stock markets were listless dur
ing the week, with some prices down.
Bonds were inactive. There is in
creasing demand for steel for building,
and the wire market is active. Auto
mobile sales continue to mount under
the stimulus of government backing.
Hamburg reports a recovery of ship
ping activity throughout March.
North German Lloyd and Hapag have
reduced the deficit in operating ex-
penSes.
Negotiations which Berlin has been
carrying on with Moscow in an effort
to revive German-Soviet business have
not been especially successful. No new
credits are extended to Russia because
the SovietS demand five or six year
credits If they are to expand their or
ders in Germany. At present it looks
as though Russia is going to buy only
routine requirements In Germany this
wear"