Evening star., 1935-10-27
ELECTION LIKELY
T0D|STURB TRADE
TREND IN BRITAIN
Pre-HoIiday Sales Expected
to Show Effects of
Uncertainty.
LONDON CIRCLES SEE
LARGE DEFENSE LOAN
Predict 100000, ,0Oo-Pound Issue
Will Be offered in U. S., as
Well as Over Empire.
Special Dispatch to The Star.

NEW 4OfIh, OCUODer Z6.-CaDleS
and radio dispatches to Business Week
give the following survey for business
abroad for the week ending today.
LONDON.-"War fears have eased
and markets are better. Parliament
has reassembled largely to handle de-
bates relating to foreign affairs. There
is strong belief that Russia and
France will withdraw sanctions on
the plea that too many reservations
by small states Is running the united
front. This will be taken by the
British as an excuse also to withdraw
anything but moral protests.
The general election is now def
nitely scheduled for November IA. 1t
seems likely now that the national
government will receive working ma
jority, though there will be impor-
tant gains for Labor in the industrial
north.
Major effects of the election, COM
ing at this time, are that it will spoil
pre- Christmas trade and possibly
cause an accentuated outflow of bad
foreign money owing to the fear that
a lessened majority for Baldwin gov
eminent means weak government
London looks for the vast rearma-
ment program to be financed by a de-
fense loan of 500,000.OO0 pounds,
which will be offered in New York
and the Dominions as well as Lon
don."
French Trade Improves.
PARIS.-"One- third of the French
Senate was up for election last week,
but the results were not unexpected.
There was a slight swing to the Left,
with the first Communist Senator in
the history of the country elected. M.
Laval, who was up for election in his
birthplace as well as the metropolitan
district. was returned from both, thus
strengthened both at home and in
the eyes of scrutinizing outsiders.
Sanctions are likely to be post
poned until late November, during
which time Italy is likely to have
reached her goal in Ethiopia.
More of Laval'S economy DEGREES
are expected before the end of the
month, the limit set by Parliament
for the prime minister to carry out
his defation scheme in France.
Business is improving, particularly
in the Northern textile industry. The
Bourse, after a bad week, has reacted
favorably to recent good news"
Reich Still Skeptical.
BERLIN.-''Informe opinion is
skeptical of the improvement in Anglo
Italian relations, and fears that even
minor incident may cause serious
complications.
THE reconstruction of the Austrian
cabinet means reassertion of the Aus
tro-Italan friendship and delays a
possible Austro-German entente.
The higher September export sur
plus reduces Germany's nine months
deficit to 100000 marks, yet the
prevailing tension is reflected in a
fresh decline in Reichsbank gold
which has been used for urgent i'm
ports of raw materials. The hasty
flood of Dutch and Danish butter
which was rushed into the country
to alleviate the temporary shortage
is being paid through the clearing
arrangements with these two coun-
tries against anticipated German ex-
ports to them this Winter.
'The coal and steel industries have
continued to expand this week, but
consumer industries are stagnant.
Securities are depressed, in spite of
the resumption of dividends by the
leading metallurgical and machinery
concerns.
Seasonal Decline Earlier.
Current indicators all point to the
fact that the seasonal recession has set
in this year about two months earlier
than in 1884. Last year the number
of registered unemployed continued to
decline till the end of November, when
the years minimum of 2,354,000 was
reached. This year the turn came in
September, when unemployment sta
tistics showed a small increase of
5000, to a total Of 1,714,o00 at the
end Of the month. Yet, outdoor oc-
cupations, especially the building
trades, show no signs of relaxation.
It can therefore be assumed that the
setback will be all the more pro-
nounced in later months when
weather conditions will interrupt work
on the construction of auto highways
and other big building schemes of the
Nazi regime. A counter balancing
factor is the introduction of compul-
sorry labor service and military con-
scription, both of which become effec-
tive in October and November and
will take off the market several hun
dred thousand young people"