ECONOMIC GERMANY.

Ashburton Guardian, Volume 59, Issue 224, 5 July 1939, Page 5

ECONOMIC GERMANY.

LABOUR RESERVES EXHAUSTED

PRODUCTIVE CAPACITY ISSUE.

(United Press Association—Copyright.> (Received This Day, 12.50 p.m.) LONDON, July 4.

The Berlin correspondent of “The Times” says that the half-yearly report of the lteichskredit : Gesellsehaft says that the economic situation of Greater Germany in the first half of 1939 shows that the nation, despite the incorporation of Bohemia, Moravia and Memelland, exhausted its labour reserves. Germany, with declining exports and a heavy agricultural deficit, is making an effort to maintain the -> production of armaments and regain foreign markets, but since all reserves of labour - and plant are fully employed, a vital increase in production can bo achieved only by raising the productive capacity of the workers' and the rationalisation of plants. The adverse trade balance in the first quarter of 1939 was 1 1 TOGO, 000 marks, against 146,000,000 in the last quarter of 1938. The prices of industrial stocks steadily declined because Government loans and public finances absorbed all available capital, leaving little for investments.