Evening star., 1935-02-03
NERVOUS
AS LEADERS MAP
ELECTION DRIVES
Vote Planned in October.
Labor Pledges NationaIi-
zation of Banks.
STRAUSS co. TROUBLES
DISTURB COMMODITIES
One of Largest London Firms
Faces Crisis as Indian Banks
Ask Receivership.
Special Dispatch to The Star.

NEW SYORK, February 2.-Cables
and radio dispatches to Business Week
give the following survey of business
abroad for the week ending today.
LONDON. - Despite government
assurances to the contrary, political
leaders are making preparations for
an election in October. With new
evidence every day of greater Labor
strength, business is beginning to get
nervous. Labor, it should be remem-
bered, has promised among other leg
islation immediate naturalization of
the banks. Lloyd Georges program,
after a weeks consideration, has been
generally dubbed the nothing new
deal
Commodity markets were disturbed
by the financial difficulties which
swamped the Strauss Co., one of the
largest firms in the financial dis
trict. Rumors of the impending trou-
bic unsettled the market early in the
week. Crisis came on Wednesday,
when it was revealed that important
Indian banks with which the COM
pany carried on huge deals in pea
nuts had demanded a receivership."
Paris to Expand Issue.
PARIS.-"Of the mass of legisla-
ton likely to come out of the Flandin
program for business recovery in
France, the first important bill passed
the Chamber of Deputies last week.
The government is given the authority
now to expand the short-term Treas
ury bill issue of the government from
10 to IS billion francs. The Bank of
France, under the management of
friend of the Flandin government, will
rediscount these bills. thus making
available to commercial banks vast
quantities of liquid funds. France
expects business to benefit. 1t should
be recalled that Washington attempt
ed to aid American business by forcing
credit initiation through open mar
ket operations by the Federal Reserve
banks.
Next to be presented to Parliament
is bill limiting working hours, pro-
all civil service employees from
occupying two jobs at one time, and
putting an end to overtime work. This
much of the legislation is similar to
moves taken in the United States.
Flandin turned to Germany and Brit
ain for his precedent in two other
moves, the first of which would pay
to all employers who take on new men
cfofn c1Ihcidyy oriIo1 m tho laIo
state would pay to the unemployment
fund for these men; the second would
raise the compulsory school limit from
IL to IA years"
Reich Banks Get Bonds.
BERLIN.-"For 18 months Nazi Of
flcialS have been preparing the Ger
man market for vast conversion
schemes. Interest rates in Germany
have remained well above levels in
most other great commercial coun-
tries. Last week, the government
foisted bonds worth 50O,0O0,000 marks
on the savings banks of the country
Issued at 98A, and carrying interest
at A. " per cent, the bonds are amortiz-
able in % years. Instead of using
these new funds for consolidating the
floating debt, the government has an
nounced that they will be absorbed in
new recovery projects.
Really vast is the project announced
this week for the conversion of more
than $4,000, 100000 of mortgage bonds
from the prevailing 6 per cent level
to AZ per cent. Interest savings will
total nearly S50,0O0000 a year, which
the government expects will flow into
new or expanding business projects.
While the conversion is claimed
to be voluntary, bonds must be pre-
sented for conversion within 4 days
(40 days for holders outside Ger
many, including the United States).
Those who convert will receive bonus
Of per cent. And those who refuse
70 convert will find it difficult to dis
pose Of their bonds, for there will no
longer be a free market for the old
bonds. No cash payments are offered
(as was done by both the British and
he French in their big conversion
Jperations).
Further financing projects are in
the air. A great public loan of one
billion marks (about $400,000, ,000) is
likely to be fioated in the next few
weeks. It is rumored in Berlin now
that this will be used for social in
Bonds will be in small de-
for the sake of the little
man."