Evening star., 1938-12-25
Didators Will Face
Trade Bargaining
Necessity in 1899
Growing Opposition From
Democrocies Expected
To Force Proposals
Special Dispatch to the Star.

special Dispatch to the Star.
NEW YORK, Dec. 24.-Christmas
has brought a calm to world mar
kets which is expected to last until
after the holidays, according to
Business Week today. But there is
a realization both in the democra-
cies and the totalitarian states that
the stage is set for a showdown in
1899, with the influence of the de-
mocracies increasing steadily as they
mobilize their trade and financial
resources to fight the economic poll
cies of their rivals.
With the French outlook slightly
brighter, and British and United
States policies unfolding along par
allel lines, the totalitarian states are
confronted with the necessity for
the first time of making definite
proposals for bargaining.
British Trade Good.
British Christmas trade was good,
but the drastic cold wave this week
has slowed sales and boosted prices
of foods.
British opposition to the economic
and political policies of the totali-
tartan states is gathering momen-
tum. DR.. Schacht ran into much
f1rmer Britain during his London
visit than at any time in the last
several years.
Britain will support the pound
actively Official support came into
the market this week, and the gov
ernment has reimposed the full ban
on foreign lending which was par
TALLY removed early this year.
Germany's New Year prospects for
private business are gloomy. Plan
ming and RECOMMENDATION are being
frightened all round, while rising
production costs and higher taxes
threaten a further reduction Of
profits.
AS New Year gifts, business an
ticipates increases in corporation
and income taxes and an increase in
the percentage Of impounded div1-
dens, even at a time when industry
badly needs all available funds for
re-equipment.
The Reich's 1888 trade deficit will
amount to 23O, 900 900 marks, against
an export surplus of 425 ,000, 900 last
year. Including Austria, the esti-
mated deficit will reach 485 100000.
French Markets Cheerful.
France is having its brightest
Christmas, marketwise. in several
years. The franc has been strong,
compared with the British pound.
Markets are cheerful There is
minimum of labor trouble, and in
ternational diplomatic problems
have been pushed out of mind dur
ing the Noel season. Traders are
optimistic and look for a continua-
ton of the bullish trend.
Russia is preparing for new deal.
Lax discipline, enormous labor turn
over, excessive maternity leaves,
weak management caused by inter-
ference from Communist party lead
ers or the meddling of local social
organizations. and the payment OF
disability insurance for accidents
which didn't really occur in a
plant-all of these are going under
the microscope in the Soviet Union
at the beginning of the New Year.
The purges are evidently over, and
Soviet authorities have decided that
the time has come to correct the
worst abuses by law rather than by
an appeal to the social conscience OF
the workers.
Canadian Profits Up.
Canadian corporations are help
ing to brighten Christmas Day for
a good many stockholders. One OF
the leaders is Canada Car & Foun-
dry Co., which reports net profit for
the year ended September 80 well
in excess of the previous year. due
to expanding operations in Its air
craft division.
Building Products, Ltd, leader in
the construction supply field, has
given evidence of the upswing in
construction by dividend declara-
tions which bring disbursements for
the current year to $3.50 a share,
compared with $245 in 1887. Can
ada turned out 1892 automobiles
in November, the best record since
May; in November year ago the
total ran only to 1854. Early con-
-l;+;o,,. ,ro npco,,rooi fnr Cana.