GERMAN TRADE BALANCE.

Auckland Star, Volume LXIX, Issue 221, 26 September 1938, Page 4

GERMAN TRADE BALANCE.

HUGE DEFICIT SHOWN. ( ~~ — —" IMPORTS OF GOLD. In view of 4ke small amount of German foreign balances, any deterioration in the German trade position is bound to cause at least uneasiness, and the accounts of German trade for the first half of the current year exercised, next to the international situation, the main influence on the Bourse,.which commenced to move downwards in July. According to the Berlin correspondent of the "Statist," a rise in imports by 9 per cent and a decline in the value of exports by 3 per cent (compared with 1037) were the determining factors of an ominous reversal in Germany'* trade balance during the first half ■of 1938. A passive balance of 114,000,000 reichsmarks during January-June of this year contrasts' with an export surplus of 192,000,000 reichsmarks during the corresponding period of 1937. These figures apply to the "Old Reich" only. The incorporation of Austria has added since April last to the Reich's trade deficit. Thus, while in June the passive balance of the "Old Reich" wan 26,000,000 reichsmarks, the addition of the foreign trade figures of Austria raises the deficit of Greater Germany in June to 49,000,000 reichsmark*. What i« still more disquieting, Austria's trade deficit shows a manifest tendency to increase since that country's incorporation in the Reich. Part of its former export trade, be it in raw materials or finished goods, is being absorbed by the Reich, while the expansion ol industrial activity requires more I imported raw material. > A puisling feature of the position, in view of the passive trade balance, ia that, Germany has imported gold to the value of 96,900,000 *f reichsmarks during this period. Twa explanations are offered. One is that the gold in question in of Russian origin, and is due to the fact that the Soviet Government has been paving off some of its German credits in gold. The other explanation is more plausible. It is that the Reich is using ffome of ite proceeds from the sale of commandeered Austrian-owned foreign securities for the purchase of gold abroad.