GERMAN FINANCE.

Waikato Times, Volume 119, Issue 19891, 21 May 1936, Page 14

GERMAN FINANCE.

t ——-+—— QUESTION OF TRADE. COS'I‘LY PUBLIC \\'ORKS. I __._. (From tum Correspmnlent.) l LONDON, April in. l .\lithorative denials that Dr. Schaclit intends to resign or relinquish his policy of maintaining the present. nrii—flriul level of the German mark have been inuttc iu—(lny, i'lL'L'lH‘LilH‘C; to :i Horlin mrrespomtcnt. "i‘lic policy at Germany‘s cuonmnir dictator sill] remains that of waiting for a general world orononiic settle—ment before attempting to solve Ger—many's own problems. Economic autnrevliy is. in the most responsible quarters, not regarded as an aim in itself. but. only as a necessary evil which will endure so long as no world agreement is reached. Dr. Schacht himself would like nothing better than_to sweep aside the Aunwieldy machine of bureaucracy iwhic-h at present hampers German trade in every direction. Price-level Problem. The most important. problem is that at the disparity between the-level of prices here and abroad. This is beset by immense dime-ulties. lbut Dr. Schaoht will not take the path of inflation. Germany he considers, cannot lace the economic and social risks which-would ensue. Moreover. a one-sided devaluation 'by Germany would not solve the greatlest dlmculty of all—that of obtaining foreign currency to pay for re-arma-ment, raw materials and for general imports. German trade can only resume its freedom of movement it the gold and exchange reserves are re—plenished, for devaluation cannot be carried through with empty vaults. In a word, Germany will struggle on with her economic and financial situation steadily growing worse and by resort to expedients. One cate—gory of imports is continually being set on“ against another. and the coun—try is almost litera‘l‘iy living from hand to mouth. Propaganda Vote Out. - The Budget gave rise to a sharp exchange of Views between Dr. Svchacht and Count \‘on Se-liwerin-Ix‘rosls'k (the Minister of Finance) on the one side and Dr. Goeblbels on the other. Dr.

_ —.__—_———_ Schacht and hls colleague had their way. Payment for the schemes of public work is another thorny problem. The system now 'being pursued is that of digging one hole to fill up another—almost exartly on the Italian plan. The bills of exchange used are con—tinually renewed, contractors being obliged to sign duplicates for every quarterly period until 1939. Payment is made in cash on the first bill. which is retained Iby the relevant financing intermediary as scrip for re~ rediscounling. About “00,000,000 worth of such drafts were renewed for two years at the beginning ‘of the present financial year three days ago.