GERMANY’S PERIL.

Taranaki Daily News, 10 November 1921, Page 5

GERMANY’S PERIL.

BANKRUPTCY FEARED. COLLAPSE OF THE MARK. DELIBERATE POLICY. By Telegraph.—Press Assn.—Copyright. London, Nov. 8. The Times, in a leader, says Germany’s bankruptcy appears to be impending at no distant date, but German business men and financiers do not seem deeply concerned. They are reaping the profiteering advantages of rising prices which result in heavy currency inflation. Some are looking forward to an early revision of the Peace Treaty from the collapse of the mark, which may partially be due to reparation payments, but is largely due to Germany’* refusal to meet expenditure out of revenue. There is every reason to believe that Germany is able to pay the reparations if she chooses, and it is the duty of the Allies to insist upon payment. HEADING FOR BANKRUPTCY. TO AVOID REPARATION. Paris, Nov. 8. The Finance Committee of the Chamber of Deputies received a special report from Berlin on Germany’s financial condition, showing that, although the prodigal issue of paper money is heading the country to financial bankruptcy, it will not bankrupt the country’s tremendous industrial power, the leaders of which view the idea of insolvency as the .easiest means of avoiding reparation responsibHiuies. Th<> report suggests that the Allies should take steps to curb Germany’s reckless expenditure. TWO YEARS’ GRACE WANTED. Berlin, Nov. 8. Leading German financiers, replying to the inquiries of French banking authorities how Germany proposes to meet the reparations obligations, state that Germany needs two years’ grace to put her economic house in order. This must be regarded as the basic condition of the country’s return to a healthier financial state. In the Reichstag it was revealed that the demands on Germany under the Peace Treaty would impose an annual tax of nearly 7000 marks per head, the payment of which would be totally impossible of accomplishment. A SWISS OPINION.

Geneva, Nov. S. The newspaper La Suisse declares that Germany’s bankruptcy is inevitable and near at hand. ANOTHER BIG DROP. Received Nov. 9, 5.5 p.m. London, Nov. 8. The exchange rate on Berlin closed at 1180 mark* to the £l, after touching 1250. — Cable Assn.