GERMAN INTEREST

Hokitika Guardian, 21 December 1933, Page 5

GERMAN INTEREST

PAYMENT DELAY

AN UNFAVOURABLE IMPRESSION

(United ' Press Association—By Electric Telegraph—Copyright).

LONDON, December 19

Foreign bond dealers, have strongly protested to the Committee 01 t*.e Stock Exchange against Germany’s default, severely criticising the German policy of using funds; which should go to pay imprest to buy German bonds at knockout prices in [London with a view to cancellation . The “Morning Post’’ says : The view is strongly held in the country that no i debtor has the right to , discriminate in this arbitrary fashion his creditors. The British Government has already ~ addressed , a remonstrance to Berlin, without apparent result, but they ought not to let the matter drop. “The Times’- says: The impression left by Dr 'Schact’s handling of the debt question is ’anything but favourable. It is idle to pretend that, the Beichhank and the Government are powerless to any . increase in the available supply of foreign ex- . change, for these could, without question, be stimulated-by appropriate measures.',-- Indeed-' l it seems quite clear that if they -really desired) to do so, <Dr -gcha-cht and 'the Government. could' very well continue the payments, •at least, on the present scale, without inflicting any hardships Upon- the German .people. Throughout the negotiations, Dr iSchacht 'displayed "a/iihighiharded disregard of the legitimate claims of i foreign- 'creditors, which it is difficult . to reconcile with perfect good faith, and' his .preferential treatment of the , Swiss and- Dutch claims in particular introduced an arbitrary discrirmnation which no amount'.of sophistry ( lean- justify. • . ; •' . REASON FOB GERMANY’S ACTION r ; , BERLIN, December'l9. i . The Economic Minister, - Herr - Schmitt, 1 ; ;•< addressing the new Foreign C rtun - - oil, said that the number of workers in -I the export industries had fallen from < 2,600,000 'to 1,750,000 in three years, i land the foreign trade had fallen from t £1,350,000000 '. to , £500,000,000,’ which . * stagnation . (contrasted with increased t foreign activ : i ; y, and oth6r nations’ s prosperity.’ -Germany'was prepared for r the closest economic relations with other i 1 nations who were' ■ willing'- to abandon I their gbortsiglitecl, exclusive, tariffs, be- t cause Germany 1 could ''only' pay if these t Were .her customers.' The Trade Council ar& therefore considering important tariff s taxation • proposals. [