STATE CONTROL.

Auckland Star, Volume LXIV, Issue 225, 23 September 1933, Page 9

STATE CONTROL.

GERMAN BANKING.

Momentous Changes Proposed

In Berlin.

POWERS OF THE REICHSBANK.

(United P.A.—Electric Telegraph-Copyright)

BERLIN", September 22,

Drastic changes in the financial constitution were foreshadowed by Dr. H. Schacht, president of the Reichsbank, in a conference with the Press.

"The council of the Reichsbank, which has always been opposed to inflation, is destined to disappear," Dr. Seliaclit declared. "The president of the Reichsbank cannot practise any policy other than that of the Government."

Nevertheless, Dr. Schacht insisted that money necessary for the movement of trade exists, and if more is needed the bank can furnish it without danger of inflation. The present backing of Reichsbank notes by gold and foreign currencies will be abandoned and fixed interest bonds will be purchased by the bank in the open market, or accepted as security for loans, and will bo available as cover for the bank's issues.

The "Daily Herald" says the council of the Reichsbank was established by international treaty.

AUSTRIA'S FEAR.

ARMED GERMAN" INVASION,

LONDON, September 18.

Dr. Dollfuss, interviewed by the Vienna correspondent of the "NewsChronicle," admitted the possibility, "in view of the folly of certain circles in Bavaria," of an armed German invasion of Austria, against which, he said, all precautions had been taken.

Germany, he added, would be absolutely isolated in the event of such action. Austria was always ready to arrive at a friendly understanding with Germany, whose broadcasting campaign indicated weakness.

Dr. Dollfuss' declaration is interpreted to mean that Italy will forcibly resist a Nazi invasion of Austria.

The Viennese feel that Dr. Dollfuss is winning the fight for independence. The Austrian army is- believed to be loyal. The Socialists resent the new autocracy, but will fight to death against the Nazis.