MONEY TANGLE

Evening Post, Volume C, Issue 85, 7 October 1920, Page 7

MONEY TANGLE

ERITISH EFFORT AT

DEFLATION

WHAT THE GERMANS ARE

DOING

(UNITED PRES9 ASSOCIATION.—COrIRIOHT.)

(AUSTRALIAN - NEW ZEALAND CABLE ASSOCIATION.) LONDON, Sfch October.

Mr. W. P. Bylands, at the Iron and Steel Exchange, discussed the wave of depression which is passing over tW commercial community. Britain had been able tc solve the difficult problem of changing to peace conditions, ■ he said, because the great manufacturing interests of the Continent were not in a position to supply any good®, especially any iron or steel, while tho movements of exchange prevented the United States doing a largo business. Now the position was changing. Germany and Belgium "were entering the markets of the world. Germany was now doing forty times the trade she did in the beginning of 1919. The expenditure of the German Government still' exceeded, the revenue to the extent of 60,000 million marks a year, the whole of which was being applied to reduce the cost of living by subsidising coal, railways, and food, and the creation of an unfunded liquid debt to enable German manufacturers to develop industries under a system amounting to heavy bounties. Britain was trying to do the exact opposite. She was trying to deflate, and the Government was removing every subsidy. He was nob criticising the wisdom of the policy, but it would increase the cost of living at a time when our industries were seriously threatened by Continental competition.