ECONOMIC STRAIN

Evening Post, Volume CXXVIII, Issue 4, 5 July 1939, Page 11

ECONOMIC STRAIN

POSITION IN GERMANY

LABOUR RESERVES USED UP

AN ADVERSE BALANCE

(By Telesrraph—Press Association —Copyright.)

(Received July 5, 1 p.m.)

LONDON, July 4.

The Berlin correspondent of "The Times" says the half-yearly report of the Reichskredit Gesellschaft in respect to the economic situation in Greater Germany for the first half of 1939 shows that the nation, despite the incorporation of Bohemia, Moravia, and Memelland, has exhausted its labour reserves.

Germany, with declining exports and a heavy agricultural deficit, is making an effort to maintain her armament production and regain foreign markets but, since all the reserves of labour and plant are fully employed, a vital increase in production can be achieved only by raising the productive capacity of the workers and by plant rationalisation.

The adverse trade balance hv the first quarter of 1939 was 113,000,000 marks, against 146,000,000 in the last quarter of 1938.

Prices of industrial stocks have steadily declined because Government loans and public finances have absorbed all the available capital, leaving little for investments.