FINANCIAL POLICY IN GERMANY

Press, Volume LXXIV, Issue 22375, 12 April 1938, Page 18

FINANCIAL POLICY IN GERMANY

DISCUSSION BY CHAIRMAN OF DEUTSCHE BANK ITHE PKESB Special Service.] AUCKLAND, April 11. The national financing of Germany under the prevailing system of trade by barter was discussed by Mr J. Hasslacher, an industrialist and chairman of the Board of Directors of the Deutsche Bank, when, with Mrs Hasslacher. he arrived at Auckland today on the cruise liner Reliance. Through an interpreter, he intimated that he was unable to say much about the financial situation in Germany, but he answered several questions on the Government's fiscal policy. Mr Hasslacher said that the gold standard had been discarded and finance was based on the possession of foreign money, which, because of its scarcity, had to be controlled. They were unable to do any cash transactions and had to' buy just as much from other countries as other countries were prepared to buy from them. There was only one exception, the United Kingdom, which purchased more from Germany than . Germany bought from her, and with the surplus of English pounds, Germany was able to pay her debts to other countries. Questioned about the recent agreement with New Zealand, Mr Hasslacher said be was unable to indicate at present whether trade would be heavy between the two countries, but he said that Germany would be pleased to take the Dominion's wool, butter, and meat in exchange for her machinery and chemicals. The agreement had* been favourably commented en in commercial circles in Germany. After referring to the rapid development of German industries in recent years, Mr Hasslacher said that the banking business was showing an upward tendency. Industrial firms had a large- turnover, and there was a general feeling of satisfaction throughout the country.