Evening star., 1934-06-03
Expected to Curb German
Imports Rather Than
DevaIue Pound.
QUICK ACTION LIKELY
ON PARIS TRADE PACT
French Fears of Hitler Arms
Plans Eased by Signs of Finan.
cial and Economic Crisis.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. June 2.-Cables and
wireless dispatches to Business Week
give the following survey of business
abroad for the week ending today.
LONDON.-"Britain is rapidly grow
ing skeptical of Germany's ability
to hold the mark much longer at the
present artificial gold level. The
creditors conference has dragged on
in Berlin without accomplishing any,
thing. British bankers believe that
the Germans may be ready to continue
minimum amount of the transfers
due, but even this may not continue
for long. The German foreign trade
position Is rapidly becoming impos-
sible.
"Rumors are already abroad that
Britain, If the market depreciates, will
be forced to ask the dominions and
the non-empire members of the ster-
ling bloc to quota German imports, or
resort to further devaluation of the
pound. This the better informed Sec
ton Of financial London does not
anticipate, for it would soon give rise
to currency war which Britain wishes
to avoid.
Stock markets are firm. Gold
shares are strong, and the new-issues
market is exceptionally active. AS al
ways happens, the virtual death of
the newest disarmament conference
and the now certain advance in
armament expenditure is taken tenn
porarily as a bull point and Is chiefly
regarded from the aspects of employ
ment and investment. The great mass
OF the people has not yet realized
what has become the commonplace
Of the informed sections-that war
is as near in 1884 as 1t was in 1914.
When the unemployment figures for
the end of May are revealed it is ex-
pected that the decline for the month
will exceed $4,000 and that the total
will be below 100000 by July"
Paris Faces Problems.
PARIS. AT present, France is
faced with three important problems:
Cd British trade negotiations are
under way which probably will be
quickly settled to the advantage of
both parties. t2) German rearma-
ment, which will be blockaded due to
both British and American unwilling
ness to take decisive measures to pro-
hibit German determination to rearm
and face any circumstances. 1t must
be pointed out that opinion here Is
that Hitler has almost reached the
limit of his endurance, since Germany
is beginning to present signs Of col
lapse, both economically and finan-
cially. Paris is beginning to view re-
armament question as purely theoreti-
cal and that, practically, France need
not worry. CD War debt, though it is
believed that majority opinion abides
by the Lausanne agreement and feels
that England, as well as France, will
declare an absolute moratorium till
America is able to call a conference
of all allies, together with former enc
mics, for final settlement of this ques-
tion."
Reich Trade Drags.
BERLIN.-"Germany definitely has
reached another financial crisis. Pro-
crastination at the creditors confer
ence continues. Business, already un-
settled, is dragging more than ever.
Berlin has agreed to continue trans
fer payments on the Dawes and Young
loans, but a six-month moratorium
on all other payments has been de-
clared. At the same time foreign ex-
change for imports during June will
be cut to 10 per cent of the l930-31
levels. During May the allowance has
been rs per cent. 1t was IS per cent
in April. The continuing drain of
gold from the Reichsbank and the un-
favorable trade balance in April were
other reasons for the drastic move.
THE public has turned to panicky
buying of provisions since the an
nouncement was made. The new re-
strictiQn means a virtual embargo on
imports of manufactures and food
stuffs. Special allowances will be
made for the import of raw materials
essential to industry"