Evening star., 1935-05-12
Swiss Action Likely Soon;
Paris Expected to Quit
Before End of 1885.
EUROPEAN WAR THREATS
LIFT LONDON SHARES
Jubilee Boosts British Business
and Circulation Total Rises;
Building Advances.
Special Dispatch TO The Star.

Special Dispatch to The Star.
NEW YORK, May 11.-CableS and
radio dispatches to Business Week give
the following survey OF business
abroad for the week ending today;
England gave itself
over to the jubilee celebrations this
week, but this has meant business
for several lines. Catering and trans
port enterprises are fully occupied.
Building continues at a steady in
crease. And, naturally, money in cir
culation is up.
Aside from the jubilee, real slim
ulation continues to come from the
continental threat of war. Aircraft
and heavy motors shares are rising
on the promise of the government to
raise Britain'S air strength to a parity
with her strongest rival. Revelation
that Germany is building submarines
took the public by surprise, revived
the fear that trouble is not far ahead.
London Gets Blame.
"The attack on the currencies of
the gold bloc has revived despite as
suranceS from Switzerland. In Am
sterdam and Geneva, London is
blamed for conducting the bear at
tack, but the real force of short SELL
ing has been from Paris through Lon
don. Stockholm has also been a bear
center probably also on Paris account.
1t is still believed by the experts and
bankers that Switzerland will come
off gold soon, and that Holland will
remain on a little longer. The Dutch
banks are more liquid than the Swiss
and a good deal of bad money left
Holland about year ago for Switzer-
land. Paris is expected to stay on
gold for several months. but certainly
not until next year. Paris branches
are now reporting home that the view
is spreading in France that all gold
bloc currencies will slip before Au-
tumn.
Paris Talks Initiation.
PARIS.-"A growing fear that in
f1ation is inevitable is forcing funds
into stocks The Bourse showed more
than usual activity all week, main
support coming from abroad. Bonds
were more or less fiat. The money
market is tighter. Domestically, the
prospect that the government will be-
gin new discussions of ways to reduce
taxes and reduce the cost of living is
rousing small optimism. France is in
somewhat the same deflationary po-
sition the United States was in be-
fore 1888.
Price reductions were promised
by the Flandin government some time
ago and are beginning to show up in
everyday buying. Milk, which was
sold in Paris for lao francs per litre
in January has now fallen to 1.10
francs, which is equivalent to about
33 cents gallon
SOviets Pleased by Pact.
MOSCOW.-"The Soviets are
pleased with the new Franco-Soviet
pact. Planned to reinforce friendly CO.
operation between the two nations
through the exchange of mutually
helpful information of military char
acter, it is at the same time expected
to result in closer economic relations.
Moscow denies that the Soviet ne
gotlators attempted to force Paris to
grant a large loan before they would
sign the pact, but the possibility that
such loan may yet be concluded is
not denied. Economic relations will
no doubt be one of the most important
considerations in the conferences with
M. Laval when he arrives in the So
Wet capital on May 13 for two-day
visit with Stain and other Soviet
leaders,"