AUSTRO-GERMANY.

Taranaki Daily News, 20 December 1916, Page 5

AUSTRO-GERMANY.

A SERIOUS SITUATION. SHORTAGE OF CEREALS. London, Dec. IS. The completion of the German barest reveals a serious situation. Tiie potato crop is 20 million ;ons, compared with HO million tons in 1015. The shortage is equal to five million tons of ceiraLs. As the cereal harvest has increased 3i million tons a. deficit equivalent to L. million tons remains. Barley will be used instead of potatoes for bread making. It is hoped that a million tons of barley will be obtained from roumania. Germany is promised increased meat rations in February. This is owing to the impossibility of feeding st. ok Four hundred thousand Re;-, liners are fed at the municipality dining rooms daily. Herr Stresomann, a member of the Reichstag, speaking at Cologne, said that no Germa.: '.ollanse was possible after iJk, Roumanian success. IT: admitted (hr.t the Germans under-estimated Mr. Lloyd George's ability in producing vast munitions. Germany's merchant submarines had provided a rubber supply for military needs foi many months. Berlin, Dec. 18. The ColognoiGazcHc and other papers admit that the losses at Verdun are a bad blow to peace ami will strengthen the war parties in enemy countries. Some surprise is expressed that Hindenburg allr.wed the French to gain so much ground and take so many prisoners at the present moment. The Frankfurter Post states that, in tin; event of the vvai ending in April, Germany will be compelled to raise (>SO million ' pounds annually to meet the current expenditure and interest on losrs..

GERMAN BANKERS' PESSIMISM. (United Service). Paris. Dec. 18. The correspondent of the Petit Parisieu iu Amsterdam interviewed a great German banker, who said: "We shall never conquer our enemies. We have been deceived as to their attitude and strength. To-morrow Germany will be financially ruined, and an internal revolution is'the only alternative to peace." DESIGNS ON BESSARABIA. Received Dec. 10, 5.5. p.m. London, Dee. 18. It is believed that Field-Marshal) von Hindenburg has designs on Bessarabia. It is pointed out that between Gajatz tnd Odessa the winter is como'arativc I *- teawarate! . ■ . , v