Evening star., 1936-03-15
WAR PROFITS RIFT
SLOWS Up BRITISH
DEFENSE PROGRAM
Plane Firms Ask Safeguard
Against Loss-0ppoSe
Probe of Books.
Special Dispatch TO The Star.


NEW YORK, March l4.-Cables
and wireless dispatches to Business
Week give the following survey of
business abroad for the week ending
today.
LONDON.-"The problem Of war
profits has entered the picture and
is preventing the rushing of new
plants which would help provide
Britain with adequate defenses in a
short time. Aircraft manufacturers
have been given assurances that, if
they extend their plants and the added
facilities prove ultimately improbable,
owners will be compensated. but such
verbal assurance is not good enough
for the heads of companies responsible
to large number of shareholders.
"At the same time the government
Is demanding that the companies open
their books for official inspection as
one means Of preventing profiteering.
To this the manufacturers naturally
object.
AT the same time newspapers
strongly influenced by labor, and a
few serious writer's interested in the
investor point of view, are discussing
the aircraft bubble as they desig-
nate the boom in aviation stocks.
The shares of four great aircraft
companies have swollen in market
value in one year from Els, ,472, 900 to
EAT $500 The nominal value Of
the combined shares is f5,892 900.
1T is this situation which is caus-
ing talk of national CONSUMPTION of
factories. to be accompanied by ma
tional service for young men and
women of school-leaving age. In its
present mood the nation would not
stand for this, but it might if the
government INDUCED in a propaganda
campaign revealing all the facts. A
straight indication that profits on ma
tionai rearmament work are to be
thoroughly controlled would prick the
aircraft bubble at once, provided the
spectators were convinced that the
cabinet meant to enforce it."
Italy Seeks Loan.
PAR1S.-"Behind the screen of the
new crisis in Europe, Italy is feverishly
seeking loan in Paris and London.
If it is granted. it is likely to be
only on condition that the Ethiopian
affair be terminated. This desperate
need for funds is likely to keep Rome
in the Franco-British camp, though
the Italians may threaten co-opera-
ton with Germany as a bargaining
point.
"The French are not particularly
alarmed that trouble will break out
soon. Germany's army. however i'm
portant 1t is numerically, is not yet
able to enter any serious struggle, due
to its lack of officers and instructed
staff organization.
"The critical time will be in 1899,
when the fall in the German birth
rate which took place during the last
war will no longer weigh on its nu-
merical strength. Before that time
Germany must find some new outlet
for her exports or trouble cannot
longer be averted.
I'm striking contrast to the boom
in the automobile industries in Ger
many and England, the French in
dustry has been going through a diff
ficult period of economic readjust-
ment Production last year was lower
than in 1884"
Reich Revival Due.
BERLIN-"Business in the Rhine
land is likely to pick up almost i'm
mediately. Until now Germans have
been reluctant to make any large ex-
penditures in a region which might
be occupied any time by outside forces.
Now there are bound to be large ex-
penditures on public works and mill
tary construction, with resulting re-
vival to other industries which will
benefit from increased spending
power"