GERMAN ECONOMY

Wairarapa Times-Age, 6 July 1939, Page 11

GERMAN ECONOMY

WORKING UNDER HEAVY STRAIN EXHAUSTION OF LABOUR RESERVES. EFFORT TO MAINTAIN ARMS PRODUCTION. By Telegraph—Press Association —Copyright. LONDON. July 5. The Berlin correspondent of “The Times” says the half-yearly report of the Reichkredit Gesellschaft on the economic situation of Greater Germany in the first half of 1939 shows that the nation, despite the incorporation of Bohemia, Moravia and Memelland has exhausted its labour reserves. Germany, with declining exports heavy and an agricultural deficit, is making an effort to maintain armament production and regain foreign markets, but since all reserves of labour and plant are fully employed, a vital increase in production can be achieved only by raising the productive capacity of the workers and by plant rationalisation. The adverse trade balance in the first quarter of 1939 was 113 million marks, against 146 million marks in the last quarter of 1938. Prices of industrial stocks have steadily declined, because Government loans and public finances have absorbed all available capital, leaving little for investments.