Evening star., 1935-05-19
Plans for Fall Elections En-
couraged by Favorable
Public Sentiment.
POUND TAKES STRONGER
COURSE DURING WEEK
Imitation in U. S. and Early End
of Gold Bloc Are Expected.
Stock Markets Buoyant.
Special Dispatch to The Star.

0pcCldL blSpdICIl 70 Ac oIdE.
NEW YORK, May 18.-Cables and
radio dispatches to Business Week
give the following survey of business
aboard for the week ending today:
LONDON-Britain has quite for
gotten its worst worries of the last
few months in the celebration of the
Kings Silver Jubilee. Public enthuSi-
asm is greater than almost any Eng
lishman expected, with business as a
result enjoying profits from the mass
spending spree. Supplies of flags and
badges have been exhausted. Continu-
ing celebrations are proving beneficial
to transport, hotel and restaurant
business.
The whole country is in gay mood.
Not the least beneficial effect is the
new burst of enthusiasm for the ma
tional government.
On the strength of this new show of
electoral support the government is
likely to encourage a general election
for the early Fall. This plan lapsed
when the later Winter scare on the
continent made it seem an inauspi-
cious time to be changing govern
ments.
Pound Moves Higher.
The pound has been stronger this
week. A part of this is due to the
fear of imitation in the United States
and a part to new fears that the gold
bloc is going to slip soon from its
present base. London does not eX-
pect any immediate stabiliZation con-
ferences. despite the Morgenthau sug-
geStion. 1t seems more likely, in
the opinion of most observers, that
Washington will devalue the dollar
down to so cents, following some fur
ther silver moves, and then perhaps it
will be we'll to discuss stabilization.
There is no indication that London is
going. to take the initiative in the
matter.
Stock markets are buoyant. The
Financial News industrial index Is at
the highest level since 1929. Aircraft
and iron and steel issues are soaring
on the stimulus of rearming. General
company results are excellent. This
boosts both the market for present
stocks and new issues. Only cloud on
the horizon is Hitler's speech on Ger
man foreign policy, expected now on
May 81.
Reich JobIess Reduced.
BERLIN.-The April decrease In
the number Of unemployed in Ger
many amounted to 10000, but these
men have been largely absorbed in
the capital goods industries, especially
building, while consumers goods are
showing no new activity. Retail sales
are actually lower than at this time
last year. Money is plentiful. with
the private discount rate now below
the bank rate, but the continued un-
certainty of the export situation bars
any stimulating effect on security
prices.
Construction of new plans for the
production of "vistra" and other arti-
fetal fibers is making rapid progress.
A new plant employing several thou
sand workers and built by the German
Chemical Trust and the Glanzstoff
Rayon Co. is nearing completion at
easel, in the southwestern part of
Germany.
It is now announced that plans
have been approved for the building
of two new plants, one in Kelheim. on
the Danube, and one in Hirschberg, in
SileSia.
Upturn Cheers Paris.
PARISH may be only a sea-
sonal burst of activity, but the i'm
provement which is evident in French
economic conditions in the last few
weeks has cheered Paris.
Unemployment is receding. Stock
prices are rising quite rapidly in a
burst of activity on the Bourse Stocks
mainly affected, of course, are those
of industries anticipating or already
receiving government orders for the
army.
Gold mines, rubber and copper and
public utilities also are climbing
steadily. This makes 1t evident that
a good deal of buying is on foreign ac-
count-for citizens of Switzerland in
particular, who probably anticipate
that their own currency will undergo
devaluation before the French franc
does. The idea is for them to buy
first-class French stocks, without any
idea of appreciation of capital, before
the Swiss currency drops, and to sell
the French stocks and repurchase
Swiss ones after the Swiss franc is
devalued.
Paris is prepared to see Swiss de-