Evening star., 1935-09-01
WAR TALK ENDS
BUOYANT TONE Of
BRITISH MARKETS
Trade Enthusiasm Cooled
Also Despite Some Eas-
ing of Tension.
RECOVERY LEVELS OFF
AFTER SHARP ADVANCE
Severe Commerce Interruptions
Regarded as Likely Even in
Friendliest Neutrality.
'pecial Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August 3l.-Cables
and radio dispatches to Business Week
give the following survey Of business
abroad for the week ending today:
London.-"Resumption of diplomat
ic conversations ahead Of next weeks
Geneva meeting has somewhat re-
lieved the tension created by the futile
Paris conference fortnight ago.when
Britain felt herself on the brink Of
war. That threat revived the concern
of experts for the three Mediter-
ranean bases exposed to aircraft and
submarine attack. as well as for the
Suez Canal, jugular vein Of empire
trade, and helps explain strengthening
of naval forces in those areas. The
fleet will naturally guard British ship
ping II 1t is impeded by hostilities.
There is little thought here that
the League will now attempt sanctions
against Italy and it is regarded as
certainty that Britain will not go 1t
alone in applying economic pressure.
However, it is realized that even under
the friendliest neutrality there would
be severe trade interruptions.
Enthusiasm Chilled.
"This attitude has chilled the specu-
lative and business enthusiasm that
boiled up during the late Summers
counter seasonal buoyancy in trade
and finance.
Meanwhile a scrutiny Of recent
trade figures indicates that the 1884
rate Of recovery is being maintained
but not sharply exceeded. Another
plateau has been reached. July trade
figures converted to a daily basis to
allow for the extra business day this
year (o00's omitted):
1885. 1894. Ch'ge.
Total imports -f6l, 1926 f5S,O28 +6.6
British export 36.443 33,230 +9.7
Re-exports 1851 4l92 Al
Total exports 40.405 37,35s +s2
For the first seven months total
imports are up OF per cent, British
exports up SO per cent. total exports
up rs per cent, re-exports down II
per cent"
Laval Is Disturbed.
Paris.-"The protest of farmers
against the low price of wheat has
disturbed Premier Laval, who is taking
measures to satisfy them. Last Sun
day $4,000 persons attended meeting
at Rouen of the Green Shirts, an or
ganization whose asserted intention is
to help the farmers. They demanded
that foreign produce be excluded from
the country, and they threatened
tax strike.
But there is a brighter side OF
the picture. The wheat crop is esti-
mated at 20 per cent below consump-
ton, so that the total crop and the
carryover may be absorbed before
Winter. Thus the present internal
price of so francs per quintal $50
cents per busheD is sure to rise. And
the Bank Of France has announced
a liberal loaning policy. 1t will re-
discount the loans of the agricultural
credit banks to the farmers on the
basis of 80 cents per bushel for 1884
wheat stocked with cooperative silos,
80 cents for 1885 wheat and slightly
lower amounts for wheat on the farm.
This loan policy Is apt to stop the
selling pressure and eventually raise
the price to sl.70 per bushel.
THE bank is also discounting treas
ury bills at liberal terms and the gov
ernment is using the money to buy in
its bonds and force them up, so as to
improve the government credit and
make possible ref,inding at lower in
terest Even if the rise of the rentes
is obtained artificially it will promote
popular confidence"
Italo- British War Feared.
BERLIN. - although Germany
stands aloof from the Italo- Ethiopian
conflict, general uncertainty here is
increased because of the growing fears
Of an Italo-British war.
stock prices have been depressed
by the apparent ascendancy of the
extremists over Minister Of Economics
Schacht, whose protests against ter
rorizing Jewish business firms have
been disregarded and also by the re-
affirmed intention of the government
to monopoliZe the capital resources Of
the country for public credit.
"Schacht has lost official control
over prices. DR.. Carl Goerdeler, price
commissar, was chosen for that posi-
ton by Schacht. But Goerdeler's term
expired in July and now Agricultural
Minister Dare, who has often been
at odds with Schacht. has assumed
the functions of price commissar."