Evening star., 1935-05-26
BRITAIN WATCHES
DRAIN ON FRANC,
TRADE TONE GOOD
Higher Nets, Jubilee Activity
and Freight Traffic
Spur Optimism.
DEVALUATION OF GOLD
CURRENCIES HELD NEAR
London Exchange Control Busy.
France Pushes Decentraliza.
ton of Major Industries.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 25.-Cables and
radio dispatches to Business Week
give the following survey of business
abroad for the week ending today.
LONDON.-"The surface tone is ex-
cellent under the continued stimulus
of good earnings reports. exceptional
activity connected with the silver jubi-
lee celebration and marked improve
ment in railroad traffic.
"The flight from the franc has
brought British exchange control
heavily into the market. The general
view is that Swiss, Dutch and French
devaluation is imminent. Neville
Chamberlain. at the bankers dinner
this week, declared that stabilization
of the pound is not yet feasible. This
is regarded as reply to Cordeil Hulfs
statement that stabilization is part OF
the United States trade policy, Brit
ish policy is now to wait for devalua-
ton of the gold bloc currencies, with
the expectation that this will lead to
a world conference Ultimately this
must lead to tariff talks aimed to
lower barriers to world trade. But
there is no hope that Britain will
completely abandon tariffs. The OF
tawa pacts and later trade agree
ments make this impossible, even If
British business would sanction 1t.
"The government is tripling its air
program, with consequent good effects
on aircraft and heavy engineering
stocks. There are rumors (as yet un-
conflrmed) that one of the large
United States aircraft firms will start
an English subsidiary. with factories
in that part of Northern Ireland
which is outside the German bombing
area. (Taking a radius of 600 miles
from the German frontiers, there Is
a part of Northern Ireland, Greece
and Southern Italy and the whole of
Portugal which Is immune from
present-day heavy bombers carrying
adequate bombing loads and fuel for
the double Journey"
Plants Fill Army Orders.
PARIS. - Business in general
does not show much change though,
of course, all factories working for the
army, and particularly for aviation,
are picking up rapidly. During the
week shoe manufacturers and the
Northern textile mills have reported
an increase in orders.
"It is. significant that more and
more plants likely to work for the
army are being moved from the Paris
district, where the concentration OF
mechanical industries was indis-
putably too big. Most Of the aviation
plants are moving to the center Of
France, the Loire district and the
south. 1t is most probable that the
government will seize the opportunity
caused by the financial difficulties OF
Citroen to force the creditors and re-
organizers Of the company to dis
mantle the Paris plants and to re-
mount the various machines in some
other district, probably at Ciermonte-
Ferrand (Auvergne), near the big
Michelin tire plants Git should be re-
membered that Michelin is the largest
creditor Of Citroen)."
Hitler's Talk Studied.
BERLIN-"Feature of the week was
Hitler's talk on foreign policy.
Singled out as high lights which
offer a chance for relaxation of Eu-
ropes present intolerable tensions
were: Solemn acknowledgment of the
non military clauses of the Versailles
treaty and of the demilitarized zone;
recognition of British
naval supremacy; readiness to accept
any one Of the Western powers as
stick for all air forces.
"On the whole, Germany was pleased
with the pronouncement. Its recep-
ton in most capitals was encouraging.
There was no indication of
change in foreign trade policy beyond
the admission that Germany's au-
tarchy program has caused a drastic
reduction in exports, that the country
had reluctantly entered a path of
planned economy
Immediate financial needs Of the
will be met by a loan
which insurance companies will be
asked to absorb. 1t is expected that
it will be announced this week."
Record Harvest Expected.
MOSCOW.-"Russia expects the big
gest harvest in its history this year.
Sowing is proceeding at the most
rapid rate, with close to 100000, 900
acres sown by May Is. This exceeds
the record of last year by more than
% ,000, 900 acres. Collective farms
this year are supplied with 100000
tractors, compared with 146,0OO last
year; with more than 10000 COM
bines, compared with half that num-
Der last year."