TRADE BY BARTER

Wairarapa Times-Age, 21 April 1938, Page 9

TRADE BY BARTER

FINANCE JN GERMANY. The national financing of Germany under the prevailing system of trade by barter was discussed by Herr J. Hasslacher, a prominent industrialist and chairman of the board of directors of the Deutsche Bank, when, with Frau Hasslacher, he arrived at Auckland on the cruise liner Reliance. Through an interpreter he intimated that he was unable to say much about the financial situation in Germany, but he answered several questions relating to the Government’s fiscal policy. Herr Hasslacher said the gold standard had been discarded and finance was based on the possession of foreign money, which on account of scarcity, had to be controlled. They were unable to do any cash transactions and were compelled to buy just as much from other countries as other countries were prepared to buy from them. There was only one exception, in the case of the United Kingdom, which purchased more from Germany than Germany bought from her and, with the surplus of English pounds, Germany was able to pay her debts to other countries. Questioned regarding the recent agreement effected with New Zealand, Herr Hasslacher said he was unable to indicate at the present time whether trade would be heavy between the two countries, but he stressed the fact that Germany would be pleased to take the Dominion’s wool, butter and meat in exchange for her machinery and chemicals. The agreement had been favourably commented upon in commercial circles in Germany. After referring to the rapid development of German industries in recent years, Herr Hasslache said banking business was showing an upward turnover and there was a general feeling of satisfaction throughout the country.