“FROM BAD TO WORSE”

Dominion, Volume 27, Issue 297, 12 September 1934, Page 9

“FROM BAD TO WORSE”

Economic Situation in Germany NEGOTIATIONS ABROAD By Telegraph.—Press Assn.—JCopyright. (Received September 11, 7.5 p.m.) 1 London, September 11. Judging from all accounts. Germany’s economic situation is going from bad to worse. The latest development is the closing of the special Bank of England account of the German Reichsbank. The "Daily Express” city editor says that it was hoped that marks in the Bank of England would be purchased by buyers of goods from Germany and used in settlement for purchases, but the hopes have not materialised, and sonder-marks are now selling at a small discount. The German Government has asked German exporters to accept payment in new marks, but Germans have no confidence in their own currency, so it is uot surprising that the British are equally reluctant. The “Daily Telegraph” says that Germany is buying large quantities of sweepings from cotton spinning mills. Hitherto the only use for sweepings has been in the manufacture of gun-cotton, but the present acute need of raw material in Germany may have suggested the use of sweepings for the manufacture of coarse textiles. Dr. H. G. H. Schacht, President of the Reichsbank and Acting Minister of Economics, now controls 25 bureaux covering all basic products, Including food, clothing, coal, wood, chemicals, and fodder, also luxury articles, a Berlin message states. Commodities which can /be entirely eliminated wilj disappear from the market. Thus it will soou be impossible to purchase chewing gum. Simultaneously substitutes for native products will be marketed, such as German tobacco. Negotiations by the German trade mission to Argentina are nearing conclusion. It is understood that a number of agreements are In sight for the exchange of German coal, chemicals, dyes, and electrical goods for Argentine wool and grain. This Is the first of several German missions which are being planned to various countries to increase German exports and provide her with raw materials. (Note on Page 7) BACK IN LONDON , 1 Lancashire Delegation (British Official Wireless.) Rugby, September 10. Sir Frederick Leith Ross, Economic Adviser to the Government, received at the Treasury this afternoon Sir George Holden and other members of the Lancashire cotton delegation which has returned from Berlin after negotiating with German importers of cotton yarns regarding delays in payment owing to the German exchange restrictions. The proposals made to the delegal- - in Berlin will b& reported by Sir George Holden to a meeting in Manchester to-morrow of the Federation of the Master Cotton Spinners’ Association. Pending a settlement of these outstanding debts, which are understood to amount to about £500,000, spinners have refused to continue deliveries to their German customers. NAZI CONGRESS ENDS Spectacular Reichswehr Display Nuremberg, September 10. The Nazi Congress ended in a spectacular manner with a Reichswehr display in which cavalry, artillery, infantry, armoured cars, sappers, machineguns and trench mortars participated in this way making an unprecedented appearance at a Nazi function. It Is estimated that 770,000 travelled to Nuremberg on the railways alone to attend the congress.