Evening star., 1935-11-24
INDUSTRY FORCES
AHEAD IN BRITAIN;
LABOR FIGHT DUE
London Unworried by Effects
of Sanctions, but Mine
Areas Are Watched.
Special Dispatch to The Star.

| Special Dispatch to The Star.
| NEW YORK, November 23.-Cables
and dispatches to Business Week give
the following survey of business
abroad for the week ending today:
LONDON-"The Unexpectedly large
majority behind the National govern
ment has given fresh squirt to in
dustry and the markets, but the
thoughtful are aware that the Social
lists polled an unusually large vote
which, under proportional represen-
tation, would have brought the gov
ernment majority down to 70. This
unsettleS the outlook for the 1940
election.
| London is not worried by any
effects of sanctions. Main cloud on
the horizon is the possibility of labor
trouble in the mining region.
Gradual naturalization of the iron
and steel industries continues behind
the protective wall of Britain's new
tariffs. Several large mergers are
expected to be announced in the near
future.
THE Austin Motor Co. has formed
its own steel division to insure con-
tinuous supply and to reduce raw ma
terials costs. This is blamed on the
difficulty Of the motor manufacturers
in securing adequate steel supplies st
time when the steel industry is
pushed to the limit to supply arma-
ment demands. Other motor manu-
facturers may follow the Austin ex-
ample, particularly if they go after
export markets.
First brewery dividends have been
announced and confirm the expecta-
ton that recovery of buying power
and lowering of duties abroad would
bring an increase in profits"
France In Critical Situation.
France has gone through
another critical week, with a gold
drain so serious that it has become
necessary to raise the discount rate
to per cent again. Prospect at the
end of the week is that the situation
will ease, and that there Is likely to
be no further serious development
until the end of the year.
1.-The current unsettlement was due
primarily to the prolonged argument
over the budget and the economy de-
crees. Left wing supporters have been
attempting to ease the burdens on
the renters and pensionnaires, but
the government has opposed this
vigorously because nothing could be
done without seriously upsetting the
budget. At the end of the week with
its new gold drain, it seems likely that
the opposition will steer its attack on
the government away from the budget
for fear panic will develop.
Delays of the finance commission
in improving the budget are expected
lament again-this time until De-
cember 3. This, on top Of the con-
tinued political squabbles, accounts for
the steady depression of security
prices"
Reich Has Export Surplus.
BERLIN-"Almost the only bright
spot in the German economic outlook
is the export surplus of 55,000,000
marks for october, which means that
the country has a favorable balance
of 24,00o,o00 marks for the first 10
months of the year. This is in strik-
ing contrast with an unfavorable
balance of 25O,0O0,000 marks in the
same period last year.
This accounts for the special gloom
in Germany over the application of
economic sanctions just now, for they
are bound to dislocate foreign trade
and add to the confusion in Europe
just at time when Germany needs
to expand export business most.
"In spite Of general business pessi-
mism and continued depression of
stock prices, Germany's index of in
dustrial production has crossed the
1928 level for the first time"