ONLY 30 PER CENT

Dominion, Volume 27, Issue 74, 20 December 1933, Page 11

ONLY 30 PER CENT

Foreign Creditors of Germany INTEREST PAYMENTS * Statement by Dr. Schacht DECLINE OF EXPORTS By Telegraph.—Press Assn.—Copyright (Received December 19, 7.15 p.m.) London, December 19. It is reported from Berlin that the Reichsbank Committee, in connection with amounts maturing prior to June 30, has arranged fully to transfer interests and amoritzation on the 7 per cent Dawes loan, 1924, and interest on the Young loan, 1930. Thirty per cent will be transferred of all maturing interests, dividends, and amounts paid into the Reichsbank conversion fund for foreign debts. Amortization payments, except in connection witj the Dawes loan, will not be made. The-regulations apply to German and foreign owners of securities. According to Dr. Schacht, president of the Reiehbank, Germany’s declining exports and currency dumping prevent her from maintaining the transfer quota. He admitted that the Reichsbank currency reserve had increased to £0,350,000 since July 1, but five millions of this was accounted for by payments under the new economic law allowing Germans to escape prosecution for evasion of the currency laws by bringing back capital into Germany. This increase could not recur. Dr. Schacht added that the actual receipts from the foreign currency were only £12,500,000, which probably would be further reduced. ... . Transfer must cease if additional imports were impossible. Germany’s gain of £lO millions to £l5 millions in foreign debt service was quadruply offset by international trade losses due to British, Swedish, American, and Japanest currency dumping. Germany s export surplus had declined £9O millions compared with 1931. . LONDON COMMENT “Cheating or Hiding the Truth” STRONG PROTESTS LIKELY (Received December 19, 7.15 p.m.). London, December 19. Under the heading “Cheating or Hiding the Truth,” the city editor of the “Dally Herald” says that since the first moratorium was announced Germany s foreign creditors have been receiving 50 per cent, of the sums due, but after January 1 next they will receive only 30 per cent. There wiU be strong protests, and the British Government will be asked to take diplomatic action, but debt collection by diplomacy is a hard job. Without producing a word of argument, Dr. Schacht, president of the Reichsbank, virtually tells the world that Germany will pay just what she likes regardless of her capacity to pay or the legitimate claims of bondholders, including those who sold goods to Germany. Either Germany is reducing her payments because she Intends deliberately to cheat her creditors or because her economic position is far worse than when Herr Hitler came to power. The Berlin correspondent of tne “Daily Herald” states that unless Germany’s exports Increase, payments on account of foreign loans are likely to be completely suspended. The “News-Chronicle’ declares that the Reichsbank decision Is a heavy blow to German credit, since Dr. Schacht must know that the only inference can be that he does not care but is deliberately playing up to the Nazi ideal of making Germany seltcity editor of the “Daily Telegraph” says Dr. Schacht’s decision amounts to an unwarrantable default. The “Daily Mail” says Dr. Schacht s declaration means! that British holders of German. State and municipal bonds will receive less than one-third of the interest due, which completely rebuffs the British long-term creditors, representations that a reduction in interest from 50 to 30 per cent, is u “3 ust It remains to be seen whether British official action wiU follow.

A moratorium for Germany’s short and long-term foreign debts, it was reported In June last, was expected to be announced looiier or later, according to Dr. Schacht, who informed journalists of the results »f the creditors’ conference. He added that Germany was willing to pay her debts, but she must have an opportunity to make the money for them. The communique said that the confer- ■ mce unanimously agreed that the Reichsbunik’s free ■ reserves of gold and foreign currency had fallen so low that further reductions might impair the Reichsbank s Junctions, as a current bank.. It was therefore preferable that they should be increased, fortifying the Reichsbank in its successful endeavours to maintain the liability of German currency. Moreover, the declining surplus of Germany’s foreign trade and services rendered it necessary to consider the protection and extension of the reserves. An exchange of proposals in that particular was not distlise.ussed, as the representatives were there merely in a consultative capacity, but he recognised that the solution of the difficulties required great efforts by Germany and also depended largely on other countries’ attitude toward the exchange of goods. X , The prompt solution of the German transfer was one of the most important and urgent objectives of the Economic Conference, and the foreigners appointed a committee to maintain touch with the Reichsbank. In September Dr. Schacht stated that Germany was determined to pay her debts. She could only do so by increased exports. Germany intended to overcome the crisis by the old-fashioned remedy of economy in every department, and a reduction in the standard of living. BACK TO THE LAND” Nazis’ Twenty-year Plan Berlin, December 18. I'or the purpose of providing all the food Germany needs, the Ministry of Labour is prepared for a 20-year “back to the land” campaign, in which the existing voluntary labour army of 246,000 will be supplanted by a conscripted body of hal£ a million, which will increase the value of agricultural produce by £100,000,000 a year. The existing volunteers are expected by 1935 to complete 100 new villages

and 5000 new homesteads in the hitherto barren areas of East Frisia, Hanover, Pomerania, and Silesia. REGENERATED GERMANY First Christmas Under Hitler London, December 18. The “Daily Mail’s” Berlin correspondent says that a season of hope and confidence in a regenerated Germany is the best description of the first Christmas under Herr Hitler’s leadership. There is an appearance of contentment everywhere compared with the real disorder and uneasiness last year. Even the Nazis’ opponents admit that they are responsible and a feeling of intense gratitude permeates the nation.

There is still, however, widespread distress, and printed appeals to help the sick and hungry are supplementing a personal canvass.

LONDON DEMONSTRATORS

(British Official Wireless.)

Rugby, December 18.

, Several arrests were made yesterday during a demonstration near the German Embassy, where a large crowd gathered after marching from the East End of London. References to the Reichstag fire trial were shouted as they marched. Four persons were charged at Bow Street to-day with insulting behaviour Three, described as Fascists, were bound over for six months, and the fourth was fined 10/-.

The police stated that they rescued the Fascists from a hostile crowd.