Evening star., 1935-06-30
HOPEFUL
FOR TRADE BOOM
Steel Pact, Railroad Plans,
Building and Arms Ac.
tivity Studied.
Special Dispatch to The Star.

Speclal DlSpatch TO Inc star.
NEW YORK, June 29.-Cables and
radio dispatches to Business Week
give the following survey Of business
abroad for the week ending today:
LONDON.-"Britain Is again talk
ing boom. The conclusion of the
agreement between the British Iron
and Steel Federation and the CONT
mental Steel Cartel. plus the promise
Of government-assisted spending by
railroads and the continuance of the
building drive and the rearmament
program have given a big impetus to
the iron and steel sections. For a
period Of three years, and possibly
five, regardless Of any new currency
devaluations or trade restrictions, i'm
ports Of steel into Britain will be
stabilized at q level below that of
1888, while the British share of the
export market will be maintained on
the basis Of 1894. Every import ex-
cept tubes will be controlled. On top
OF this jump in heavy industrial opti-
mism has come run Of much better
rail traf1cs. Add to these factors the
psychological use which is being made
Of the reconstructed coalition cabinet,
and boom talk is fully explained.
Company reports continue to show
large profits. Outstanding records
this week were by Hovis (bread and
hour) and Callender's Gable & Con-
struction Co. Breweries are also
above general expectations.
"The first annual meeting Of the
Gas Consolidation Co. stresses the
success Of the program on which they
embarked year ago of developing
small units to serve individual COM
munities rather than resort to the
great central system adopted by the
electric power producers through the
governments grid program. The gas
industry has made steady progress
during the year, claims to be able to
meet adequately the fresh competition
from electricity"
Laval Program Awaited.
PARIS-"Parliament is expected to
adjourn by the end of the week and
very shortly after that Laval should
announce his program to rehabilitate
French governmental finances. Paris
expects this program to call for econ
omies all along the line, with cuts
in all governmental salaries, and rail-
road economies which will reduce ex-
penditures by more than $500 900 900
francs (the railroad deficit Is already
in excess Of $500, 100000. Business
Is still slack. awaiting these definite
announcements.
1.-THE Bourse Is quiet. People have
come to realize that there Is no ques-
ton of devaluation at the present
time, and that the government may
even prove sufficiently energetic in
making economies to ease the tense
situation in the treasury and to make
devaluation talk q thing Of the past.
indicative of the determination Of
Laval to deal drastically with those
who backed the recent campaign for
devaluation is the warning from the
prime minister to the editor of q GER
tain financial paper to stop his scare
talk or be prepared to suffer extreme
penalties which the government Is
now empowered to decree"
Reich Industry Slackens.
BERLIN.-"Industry has slackened
seasonally but is still operating about
S per cent ahead of last Summer and
almost at the 1880 level. Berlin does
not expect any further decline in
activity during the Summer but the
tightness Of the short-term money
market. is likely to become critical
by Winter.
Trade relations with the rest Of
Europe are likely to suffer when exist
ing clearing agreements expire on
July IS. In almost every case Ger
man exports are likely to suffer for
creditors are unwilling to allow any
great excess of German goods to come
into their countries when they are
already out to the amount Germany
owes them for interest on outstanding
loans. Germany's dwindling export
business makes the outlook for credi-
tors pretty gloomy.
Internally, business is making
headway and investors are proflting.
From statistics published by the Ger
man Institute for Business Research
1t is revealed that corporations in
1934-for the first time since 1890
showed modest profits. OF 325 re-
porting corporations, 3s per cent re-
sumed dividend payments or paid
higher dividends in the first four
rnnnfhs Of this war than a wear a1o I"