Evening star., 1935-01-20
Programs of Lloyd George
and Present Cabinet
Cause UneaSineSs.
RAPID PROGRESS MADE
ON REICH BARTER DEALS
Latest Plan, Backed by Chemical
Industry, Involves Soy Bean
Planting in Rumania.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 1e.-Cables
and radio dispatches to Business Week
give the following survey of business
abroad for the week ending today:
LONDON-With Lloyd Georges re-
turn to politics on a strong RooSe-
veitian platform, advocating SPEND
ing and development campaign; with
the present prime minister pledged
to a program of shorter hours, evenly
spread work, development of land
settlement and reforestation plans,
and with every party pledged to the
motto: Great Britain cannot afford
the sum- London is plunging into a
year of political campaigning which
will vastly affect business.
Although 1885 started optimisically
with strong rise in British funds,
these political programs which would
bring about vast changes in British
business are causing some uneasiness.
Some observers see signs that 1885
may reproduce the symptoms of 1881.
The adverse trade balance, the too
heavy import of manufactured and
Semi-manufactured goods, the presence
in London of foreign investment funds
which may return home either be-
cause European and American affairs
are more settled or because the pos
sibility of Labor government in Brit
ain seems likely, the rising expendi-
ture which may make the budget of
1886 awkward-a1 these are the signs
on which emphasis is laid. 1t would
be an error to stress this uneasiness
too much. but it is present, and should
be kept in mind by every one trying to
forecast British progress over the next
IL months"
Barter Deals Pushed.
BERLIN-"Germans have made
rather remarkable progress lately with
international barter deals. Until re-
Gently the steel industry has taken
the greatest initiative, rolling up con-
siderable volume of large orders in
South America, the Orient, the Near
East and one or two with firms in
the United States willing to buy from
Germany in order to liquidate ac-
cumulated funds in Berlin.
Latest barter plan is backed by
the chemical industry and provides for
the growing Of large quantities of soy
beans in Rumania, which will be pur-
chased by a German company and
shipped to Germany. In return, Ru-
mania agrees to admit German goods
of an equal value. Experimental
paintings of over 5000 acres in Ru-
mania this year proved that soy beans
thrive in that soil and climate.
The special company which has
been formed to handle this business
Is backed by German capital and
headed by a Rumanian ex-minister
OF finance. 1t undertakes to purchase
the entire bean crop at a fixed price
and to export it. Fifty per cent of
the German goods which will be
bought with the funds must come
from I. G. Farbenindustrie, which
indicates the source of the German
financing.
Italy, with ambitions for economic
expansion in Central Europe, will fol-
low this deal jealousy. Not only
does Germany gain an important
foothold in Rumanian trade (first-
year bean shipments are expected to
be worth $1,000,00O, but a similar
deal is under consideration with Bull
garia.
Store Drive Subsidies.
THE Nazi campaign against de-
partment stores, whether Jewish or
Aryan, has markedly subsidized during
the year. Department store sales,
which had been falling throughout
1888 and in the early months of
1884, began to rise last May and in
each succeeding month have topped
the level of the same month in 1888.
AN important German depart
ment store, the KarStadt concern,
has now been assisted indirectly by
the government. During the great
expansion period after the imitation,
Karstadt built in Berlin at a cost of
100000 marks a palatial Office
building, which was supposed to
house its head offices. This unfortu-
nate venture was one of the causes
eading up to the financial difficult
lies which brought Karstadt to de-
fault on its dollar bonds. Now the
Reich has purchased this Office build
ng, the largest in Berlin, for A.
100000 marks, or considerably below
cost. It intends to accommodate in
It the Reich statistical bureau. In
spite of the heavy loss, this transac-
lion will materially relieve the finan-
cial position of the Karstadt concern"