Evening star., 1934-04-01
EMBARGO CENTERS'
WORLD ATTENTION.
ON REICH PROGRAM
Rising Import Surplus
Forces Drastic Imports
Ban-U. S. Trade Hit.
CONTINUED GOLD DRAIN
ALSO CAUSES ALARM
Nation Desires to Prepare Way
for Schacht's Conference With
Creditors in April.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, March 31.-Cables and
radio dispatches to Business Week
give the following survey of business
abroad, with interest centering in Ger
many, for the week ending today:
BERLIN.-"Hitler's newest move in
dicating his complete control over
German economy is TIE embargo on
certain imports. 1t IS a drastic move
such as is usually imposed only as a
war emergency. Its effects, at home
and abroad. can only be guessed now.
From now until May 5, all imports
Of cotton, wool, jute, fax and hemp
are prohibited. Price rises, due only
to this temporary embargo, are for
hidden by law with heavy penalties on
violators.
Copper Shut Out.
Following Immediately on this an
nouncement is the complete embargo
on the import of copper, without any
time limit. Allotment of existing stocks
to the most efficient" industries will
be made at the discretion of the min
istry of economies.
Finally, official allotment of for
eign exchange for the purchase of
materials from abroad has been re-
duced to 35 per cent of the basic
amount" which in itself is SO per cent
below the levels of prosperous years.
There are four possible reasons for
the move. Most obvious are the in
creasing import surplus for the first
two months of this year, and the con-
tmued gold losses Of the Reichsbank
which have brought its gold reserves
down to the level of June, 1888, when
the first transfer moratorium was de-
clared. No less weighty is the desire
of Germany to prepare the way for
the April conference of the country's
creditors at which Dr.. Schacht will de-
mand reduction In the interest
charged on the outstanding debts, and
possibly write-down of the debts
themselves on the contention that they
are essentially political debts carried
over from the Versailles dictates"
U. S. Trade Affected.
1.-THE new restrictions affect more
than 83O,OOo,OOO marks of imports.
more than 240,OO0,OOO of which have
been supplied by the United States.
Cotton and linters ordinarily make up
about one-third of Germany's annual
imports from the United States. Crude
copper has always been major item
in the import list. Lard, drastically
quoted last year, was another major
import until Germany went in for
extreme f-sufficiency.
Because Germany is dependent on
foreign supplies for more than 95 per
cent Of her raw cotton, go per cent
of her leather supplies, go per cent
of the materials used in the heavy
industries, most Of the rubber and
mineral oils, the present move to curb
imports obviously jeopardizes the
vast unemployment program.
It is therefore construed as a strongly
tactical move leading up to the bar
gaining WIllCIl Will Ut IleCcSSdly do IliC
creditors conference and in the secur-
ing of better trade agreements with
foreign countries. especially the United
States. Whether DR.. Schacht goes to
the United States or not to plead for
R. F. C. credits to finance exports to
Germany, the new move is bound to be
studied in Washington, for Germany is
still Americas fourth best customer"
British Trade Receivers.
N.-"Nationally, British
trade has recovered its composure,
temporarily lost during the riots in
Paris, the fighting in Vienna and the
threats Of trouble in Southern Ger
many. Worry over European conflicts
has not been overcome completely.
biggest boost to business in recent
weeks are company reports. Imperial
Chemicals leads an imposing list Of
large chemical and engineering firms
greatly improved earnings.
The stock market reflects the better
outlook. Railroad traffic still is at high
levels but the rate Of increase has
lessened. The approach Of Easter has
caused an industrial lull. but steam
ship lines are profiting from unusually
heavy holiday cruise bookings"