GERMANY TO PAY.

Taranaki Daily News, 18 August 1922, Page 5

GERMANY TO PAY.

“FULL SAIL FOR CHAOS.” DIFFICULTY OF FINANCE. THREATS OF UNREST. By Telegraph.— Press Assn.—Copyright. Received August 17. 9.40 p.m. Berlin, August 16. Herr Wirth (the Premier), interviewed by foreign journalists, said: “Germany is steering full sail for the conditions prevailing in Austria. It is absolutely impossible to keep Germany towhen her currency is worthless.” He denied M. Poincare’s allegations that Germany had offered a four millions loan to Czeeho-Slovakia. There was not a word of truth in the statement and a further statement by M. Poincare that Germany had founded banks in Denmark, Roumania and Holland was equally untrue. German financiers were interested in banking concerns in Holland merely to enable German trade to re-link with the outside world, as all German banks in Allied countries were closed down. If Germany desired to depress her currency by the sale of marks abroad she would scarcely attempt this through specially established banks. Herr Wirth proceeded: “The present inability to pay reparations in gold will quickly be followed by inability to pay in kind. Yesterday’s payment of £SOOXIOO was taken from funds required to purchase foreign cereals for the people’s bread. It is like being at the deathbed of a nation when one surveys the situation. Our great task in the next few months will ‘be to assure social order in Germany. Already there is a serious threat of unrest everywhere/’ — Aus.-N.Z. Cable Assn. London, August 16.

The Berlin correspondent of the Daily Chronicle interviewed Herr Wirth, German Premier, who states: “Our policy must be, first, bread for the people; then, reparations. We can and will observe our obligations only so far as assuring the bread supply for the people's physical existence permits. We have goodwill and patience in a large degree, but our strength is ended. For

mere humanity’s sake we must assure the people bread to prevent them sinking into miserv ai.d despair. “The diffieuil'es in securing bread have been increased by the French action in Alsace-Lorraine. Only a moratorium extending many months will be of any value. Six months would have been quite sufficient if granted a while ago but, as the mark depreciates, a moratorium becomes less and less effective. The psychological effect of the moratorium would have been of great value; that value is now absent. The feeling of danger and uncertainty is one of the worst features of the situation.

Herr Wirth discussed the flight of capital, declaring that the best preventive was to make it worth while* to keep capital at .home. That could best be achieved by stabilising the mark, which could best be done by halving the reparations. They needed confidence for the mark. The catastrophe was due to the dwindling confidence caused by the fear mat France wanted Germany’s life—that was the great question. The sword was over their heads. The collapse of Germany would be an unparalleled thing. If goodwill was introduced into Europe Germany might even yet be saved. Berlin, August 16.

The Government has addressed Notes to the British, French, Italian and Belgian Governments declaring that, ow-

ing to foreign currency requirements for the urgently needed necessaries of life and the fall of the mark, it is unable to meet the clearing house payment of two million sterling due to-day. Following a conference with the trade union leaders the Government has decided to reintroduce maximum food prices, similar to those fixed during the war.