LOSSES IN GERMANY.

Press, Volume LXVI, Issue 20025, 5 September 1930, Page 16

LOSSES IN GERMANY.

- INCREASE IN BANKRUPTCIES. * (UNITED PRK6S ASSOCIATION—BT EMCTRIC TELEGRAPH—COPYRIGHT.) BERLIN", September 3. The Institute of Economic Research says that for the six months ended June 30th, creditors lost £25,000,000 in bankruptcies, numbering 7600, compared with 1400 last year. In addition there were 4800 compulsory settlements cotapared with 1800 the previous year.

Echoing Mr Parker Gilbert 's report, Herr Stegersvald, German Minister for Labour, on June 28th, admitted that for some years past Governmental institutions in Germany had been "Jiving beyond their means." The present trade depression, however, he attrilmted to last year's events in America. He said that from 1924 to 1928 foreign capital to the amount of between £.125,000,000 and £150,(300,000 had flowed into Germany every year. Last year, not only did this stream dry np, but large quantities of German 'capital went abroad. Now the Keich and the States must either redeem or transform into long-term debts, short-term credits to the total of more than £150,000,000. This situation was reflected in the building trade, in which between 500,000 and fioo,ooo fewer men were employed than at this time last year. Herr Stegerwald further insisted that German exports must be forced up by "some milliards of marks" (a milliard marks is about £50,000,000) and that efforts must be rnado to cheapen costs of production by reducing both wages and prices, but the latter more than the former.