BREAD FIRST.

Auckland Star, Volume LIII, Issue 194, 17 August 1922, Page 5

BREAD FIRST.

GERMANY'S REPARATIONS. DR. WIRTH'S PROPOSAL. HALVING THE TOTAL. (By Cable.—Press Association.—Copyright.) (Receive 1 11 a.m.) LONDON, August 16. The '"Daily Clyonicle's" Berlin correspondent interviewed Dr. Wirth, the German Chancellor, who stated: "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 our people's physical existence permits. We have goodwill and patience in a largo degree, but our strength is ended. For mere humanity's sake we must assure the people bread to prevent them sinking into misery and despair. The difficulties in securing bread have been increased by French action in Alsaoe-Lor-rainc. 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 effeot of a 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." Dr. Wirth discussed the flight of capital, declaring- that the best preventive is to make it worth while to keep capital at home. That could best be achieved by stabilising the mark, which could only' be done by halving the reparations. "We need confidence, for the mark catastrophe is duo to dwindling confidence caused by fear that France wants Germany's life. That is the great question: the sword is over our hends. The collapse of Germany would be «in unparalleled thing. If goodwill be introduced into Europe Germnnv may even yet he saved."—(A. and N.Z. Cable.) The German Government has addressed Notes to the British, French, Italian and Belgian Governments declaring that owing to foreign currency requirements for urgently needed necessaries of life and the fall of the mark it is unable to meet the Clearing House payment of two millions sterling due today.—(Renter.)