CHAOTIC FINANCE.

Auckland Star, Volume LXI, Issue 141, 17 June 1930, Page 7

CHAOTIC FINANCE.

FEARS FOR FUTURE.

Profligate Expenditure by German Authorities.

SPENDTHRIFT METHODS.

(United P.A.-Blectric Telegraph-Copyright)

BERLIN, June 16,

Drastic criticism of German finance is the keynote of the final report of Mr. S. Parker Gilbert, Agent-General for Separation Payments.

Mr. Gilbert denounces the profligate expenditure of public bodies, from the Government of the Reich to rural communes, as the most serious danger threatening the country. Otherwise all promises well, he says.

nationalisation has largely increased, production, the standard of life Jias risen and a permanent credit balance has been eatablished in foreign trade. "But the future cannot bo faced," says Mr. Gilbert, "unless the public finances are extricated from the chaos into which they have been plunged by years of spendthrift methods. So far there

has been no effective recognition of the principle that the Government niust live within it-3 income.

"Current- expenditure on the army and the navy has risen to 700,000,000 marks, not including pensions, compared with 450,000,000 marks in 1924.".

Mr. Gilbert's report coincides with the issue by the German Government of a scheme of economies. This is accompanied by a threat that clause 48 of the Constitution will be resorted to unless the-Reichstag passes the economies'clause to allow the President to act in a national emergency.