GERMANY.

Taranaki Daily News, 25 March 1916, Page 5

GERMANY.

SOCIALISTS' VIEWS. ON SUBMARINE WARFARE. Amsterdam, March 23. Socialists in the German Reichstag have resolved to move in connection with the submarine campaign the avoidance of everything detrimental to the rights of neutrals, also urging the Government to do its utmost to secure a speedy peace guaranteeing the Empire's integrity and its political independence and freedom for economic development. The Budget Committee of the Reichstag is sitting secretly to discuss the renewal of submarine warfare.

[ GERMANY'S FINANCE. SQUEEZING THE MARK UNTIL IT SHRIEKS. Dr. Helfferich's claim that no other nation has approached Germany's financial achievements may be strictly accurate in one sense, but it does not appear that the German Finance Minister has any special reason to rejoice on that account. Here is the view of a German banker, quoted by a neutral correspondent:—"The question o;' war finance is, broadly speaking, a matter of minor importance. The present system of paper economics has the advantage of not being limited to the known dimensions. It solely depends on the nation's willlingness to accept a promise of payment instead of cash, and a nation cannot give up confidence in itself. The serious problem will be approached at the moment peace is signed. Our currency will be depreciated just at the moment when it will have to serve its true purpose. We have no raw materials for our industries and no industrial products to sell. The national plant, the greatest part of which is now serving war purposes, will have to be reorganised. We shall re-enter the world market with a depreciated currency—that is to say, hampered by a disadvantage that may amount to 40 or 50 per cent, or more. There will be a rush for materials, and consequently a further depreciation of our money, and our exporting industries will not be able to < set to work until the raw material comes in." And in this connection there has been no more illuminating comment on the German ''achievement" than the short catechism "from one old banker to another" sent by Sir Edward Holdcn to Dr. Helfferich. (1) Arc Germany's credit balances abroad existing at the present time, or are they all exhausted? (2| Have not the exports of Germany scriivsly diminished, thereby placing the country in a difficult exchange position? (3) Assuming their balances have been exhausted and their exports diminished, is it not a fact that the German people have sold nearly all their foreign securities, thus rendering'it very difficult to pay for her imports? (4) Did Germany pay gold for the Rumanian wheat, and why was it not shown in the Reichsbank statement? (5) As Reichsbank notes had been rendered inconvertible while the notes of 'other banks had no gold against them at all, should not the words "Mene, Mene, Tekel, Upharsin" be written on this towering pyramid of paper, for, when these notes had to be redeemed, Germany would indeed be "found wanting"? (0) Is a part of the gold shown in the Reichsbank statement to be held by that institution actually held by any institution outside Germany? Sir Edward said that a year ago he told the shareholders of his bank that a German banker had said that every mark would be squeezed until it shrieked. "I think -we shall presently see that the mark has already been so squeezed that there is not even a squeak left in Ak» wis hi* further eoram.en.tr