Evening star., 1935-12-08
BRITISH FINANCING
SHOWS FAITH IN
BALDWIN REGIME
81 500, 900, 900 Issue Sold
QuickIy-Some Rates
Lowest in History.
LONDON LESS GLOOMY
OVER FOREIGN NEWS
November Retail Sales Increase
IA Per Cent, With Improvement
Spread on Wide Front
snecial nisnatch to The Star.

Special DlSpaLcn 10 1 ne otdIs
NEW YORK, December Gables
and radio dispatches to Business Week
give the following survey of business
abroad for the week ending today.
LONDON-"In spite of the tense
ness of negotiations with Rome, the
dread Of what Germany is going to
do, and the mistrust Of French CO.
operation, the Baldwin government
won an unusual vote of confidence
this week In the form of prompt
and eager public reception Of the
governments $500, 900 900 financing
offer. Rates for one section of the
loan were the lowest in the history OF
the British government per cent.
1t is vote of confidence for the Bald
win government, because the offering
was Immediately subscribed in spite
of the fact the Baldwin crowd was
elected on a program Of rearmament
which is bound to cost millions, and
may unbalance the budget.
Two separate issues made up the
loan. One was for 81 900. .000, 900. pay
able in Is years, and carrying 2l2 per
cent. 1t was offered at 96l2. The Sec
ond is an issue of $500, 100000 in /
per cent bonds, with a f1ve-year ma
turity, offered at 80. More than ST.
00O,000,00 will be used to retire ma
turing treasury bonds.
while it is realized that anything
can happen in the Mediterranean,
London is less pessimistic over the
outlook this week. Cancellation is ex-
pected to be effective, though the old
Anglo Italian friendship of a few
years ago is dead. Britain has lost
trade connections which will not be
re-established even though the whole
East African problem is settled.
THE business outlook is otherwise
good. Retail sales for November rose
IA per cent. the improvement being
well spread over all lines. Stock mar
ketS are firm. Industrial profits are
being maintained at good levels, with
many dividends increased"
Gold Drain Checked.
PARIS-"France has stemmed last
weeks rather alarming gold drain. The
public is once more convinced that de-
valuation is not coming in the present
crisis. In general, it is expected that
Laval will remain In power until the
end of the year, during which time the
budget will be passed.
The really critical period for the
Treasury comes between February and
April when tax receipts are lowest. 1t
is quite possible that whatever govern
ment is in power will be obliged to go
to London for loan. which will be
secured with French gold. for domestic
lending rates are likely to be unrea-
sonably high.
THE country is generally quiet, and
Withdrawals from savings banks have
been relatively small, which shows
that there is no panic for the present,
though one could very well break out
in the future in case of a new series
of political crises.
Gold losses in recent weeks mean
simply the sale of French securities
and of French boarded bank notes
and the purchase with the proceeds of
these sales Of foreign securities and
bank deposits. Your correspondent
has recently made a study of the
American market and has discovered
that nearly $4,000, ,0000 900 of foreign
capital have come back to the United
States since January, 1884. It is quite
possible that about half of this sum
represents capital owned by French
citizens or by foreigners but originate
ing in France. 1t is most probable,
also, though not absolutely proved,
that vast hoardingS of capital in
France have greatly decreased in the
last year. At one time they were esti-
mated to have passed $4,000, ,000, ,000."
Germans Pessimistic.
BERLIN.-"The German situation
has not improved this week, nor has
there been any indication that recent
peSsimism is diminishing. DR..
Schacht's boldly critical speech of ex-
treme Nazi policies, and in praise of
the capitalist system, received almost
no criticism.
'"The public is skeptical of the eff
f1cacy Of the oil embargo because of
the serious gaps which inevitably will
develop. Germany is watching each
development carefully, for Germany is
only little less dependent on foreign
oil than Italy.
with public works and armaments
ominously diminishing, an increase of
exports is considered the only means
of preventing a decline in industrial
activity and an increase in unemploy-
ment. Faced with this critical situa-
ton, it is likely that the government
will try to push exports with further
subsidies, though these already aver
age 20 per cent"