The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, MARCH 6, 1930. GERMANY'S ECONOMIC SITUATION.

Hokitika Guardian, 6 March 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. THURSDAY, MARCH 6, 1930. GERMANY'S ECONOMIC SITUATION.

An interesting review of Germany’s niiiincial, trade and general economic situation is provided l>y reports just published by the office of the AgentGeneral for Reparations, and sent out jv Reuter. The first of these, the report of the ’Commissioner of the Reidis'b'ank, says once again it has been recorded that the position of the Reich,shank is in every respect sound. After pointing out that the dominent feature in Germany’s industrial situat'ou in the past year was the extremely strained position of -thecapital marset, the Commissioner observes that it has been impossible to meet new capital requirements by still further increasing the short term indebtedness, which at the beginning of the year was already high The trade balance has greatly improved, hut there is no question, as yet. of an equilibrium in

the balance of payments. The Money Market can, m the opinion of the Uommissioner, only be matte easier ii it' is leiievcd oi the pressure or public debts, fn spite of trie pressure it is gratifying to note, the report continues tiiat the productive capacity of Germany was, in general, not affected. That, however, tnere were serious consequences is shown by tiie number of huiiia uptcies enumerated in tiie report ot the Commissioner for Industrial Debentures. . Ineie wv/.e 2UG bankruptcies and 318 voluntary wind-ings-up during tne year under review, involving / .ovA/.oou and 15,00U,(KK) marks le-spectively. The Commissioner states that tiie industrial reorganisation is, on the whole, in a fair way to overcoming the difficulties of the new economic situation. Production is increasing, while costs of production and working expenses are being reduced. Phis piocess of concentriftioii is, however, not concluded yet, and is one oi tiie greatest problems of the country. Germany is steadily developing its industrial relations with other producing countries, chiefly the United States, Great Britain and France. With regard to Germany’s key industries, viz., coii), lignite, potash, cast iron, oast steel and rolled metals, the Commissioner’s report is generally favourable, and Germany is holding its position, in the world market. Germany’s coal production, for instance, is 25.9 per cent, of the European production, and the lignite production 77.8 per cent, of that of the whole world. Germany now has nearly one and a quarter million . motor-cars on. its roads, and ranks one third of the rubber using countries. According to the Commissioner for Controlled Revenues, viz., from Customs, tobacco, beer, alcohol and sugar, tliesb are expected to yield during the existing annuity year 2,870,000,000 marks as compared with 2,852,000,000 marks in 1928. In general the increase in revenue lias been clue to the consolidation of the economic situation, to'the steadily increasing consumption, and to the increased rate of taxation. r l he report maintains that, the future revenue of the Customs rests on a firm basis and can hardly fall below that registered in the past year, except in the event of an extraordinary development of the home agricultural production, or of a pro-: non need weakening of the general economic situation. The increase in the consumption of tobacco from 1924 to 1929 was. according to the report, generally remarkable, viz., cigars 33 per cent., cigarettes 44 per cent., cut tobacco 14 per cent. The consumption of beer also advanced steadily, viz., from 37,700,C00 hectolitres in 1924 to 5 ,600,000 hectolitres in 1929. The revenue increased by 70 per cent, in live years. The consumption of pure spirits in 1929 was quite unusual, viz., 2,800,000 hectolitres. The report of the Commissioner for German Railways, wnicli is likewise issued by the AgentGeneral, points out that, despite many u-iueulties in the working of the company during the fine velars of the Commission’s existence, the result was satisfactory. The development of traffic and the' financial results were more favourable than in 1923, and on the whole the development of Germany’s economic with its rising exports and declining imports and the in.rense of passenger and goods traffic, appears to he satisfactory. The balance sheet of the company for 1929 is not yet ready, but the total receipts are estimated at 5,370 million marks, or 4 per cent, in 1928, and the expenditure at 4,459 million marks, thus leaving a surplus of 911 million marks, which sum is just sufficient to | meet the Reparations burden of the railway company, the preference dividend, and costs for railway extensions in 1929, while 80 million marks will be placed to reserve account, by which the latter will be raised to 500 million marks. The year 1930 is regarded as a serious one for the company, in tiiat it lias to find fresh sources of revenue for the balancing of its budget. There will hardly lie any other way. says the report, lmt to grant the company’s request for an increase of the tariff, because the Reich, owing to its own financial difficulties, will scarcely be in a position to forego the revenue from the railway tax, which, after the adoption of the Young Plan, will he transferred to the Reich. The report concludes by saying that the result achieved by the company since 192-1 is absolutely encouraging, and allows similar conclusions to be drawn for the future. A prudent and economical policy is being pursued, taking; into consideration the necessity of furthering the. country’s trade and in-

dustrv, as well as the needs of Hie railway stall, on whose devotion the gootl work of the railway depends.