GERMAN FINANCE

Hokitika Guardian, 9 December 1931, Page 6

GERMAN FINANCE

LAST DESPERATE HOPE, TO SAVE COUNTRY FROM RUIN. (United Press Association.—By Electric Telegraph.—Copyright.) (Received this day at 1.5 p.m.) BERLIN, December 8. Virtually the whole social life of the country is affected by to-night’s decree in reducing prices for co d and iron by 10 per cent, gents by .10 to 15 per cent., railway fares, freights and public utilities 'by 25 per cent., interest on bonds and mortgages from 8 to 6 per cent. All wages of employees, and salaries arc being reduced to the level of January 4927, while those of civil servants will be reduced by nine per cent.

Dodgers who are living abroad . are; penalised 25 per cent, of ithe tax with liability to arrest and gaol if they "do not return to Germany within lour months.

All this is described as the desperate last hope to avert economic collapse, in which connection the banker, Mr Melchoir, told the Basle Confererice the alarming fact that Germany’s short term debts on July Ist. stood at £600,000,000 instead of the previous estimate of £400,000,000. Bankers were appointed a. Committee to examine the conflicting figures. International bankers, including British representing the Germany short term creditors, reached an agreement to take united action in an attempt to link private credits with repatriations, to which course French Government is unequivocally hostile.