DUTCH ESTIMATING 1
EXTENT OF DAMAGE!
Flood's Effects on Economy
Seen as Heavy Blow, but
Not Disastrous
By PAUL CATZ
Special to The New York Times.
AMSTERDAM Feb. 15—The ex
tent of the flood damage gradually
is becoming known, along with its
subsequent effect on the economic
and financial situation. A tentative
estimate by the Prime Minister,
Dr. Willem Drees, put the damage
at around 1,000,000,000 guilders.
Although this will be a heavy
blow to Dutch finances, it is not
disastrous. Large gifts from home
and numerous foreign countries
still are pouring in; industrial
capacity is unimpaired; the treas
ury's liquid resources have reached
a new high, and the balance of
payments still ip favorable. In ad
dition, the position of the Dutch
bond market is such that the issue
of a large loan is now feasible. But
Dutch authorities still are hesitant
to accept the United States offer
to use some of the counterpart
funds owing to its inflationary
influence.
Damage to the Royal Dutch con
cern at Pernis, near Rotterdam,
has been repaired, and the refin
ery is operating practically at
capacity.
Philips Lamps' hot air engine,
which still was in the experimental
stage, now is being used very
successfully in flooded areas.
The Netherlands Bank's gold
stocks last week rose 38,000,000 to
2,187,000,000 guilders, while foreign
exchange, plus gold stocks, in
creased 47,000,000 to 3,847,000,000.
Note circulation fell 43,000,000 to
2,982,000,000 and the treasury's
balance rose57,000,000 to a new
high of 1.051,000,000due doubt
less to a continued favorable
balance of payments. The president
of A. K. U, (Algemeene Kunstzyde,
Unie), Dr. Van Schaik, said last
week that curtailment of produc-j
tion in 1952 had. been almost fully I
made up, but that further large
investments were necessary. He
said the American Enka Corpora
tion would produce A. K. U.'s nylon
product, Enkalon, and that a license
agreement with I. E. duPont de
Nemours Co., Inc., had been
signed. A factory to produce in
itially 2,000,000 pounds annually
'would be built.
The stock market last week was
firm, with a good demand for home
industrials. Tomorrow nearly all
German bonds, including Young
and Dawes loans but with the
exception of Potash loans, again
officially will be dealt in at
Amsterdam.
