CAPACITY TO PAY

Evening Post, Volume CXVIII, Issue 55, 3 September 1934, Page 9

CAPACITY TO PAY

SEVERE BRITISH COMMENT

DR. SCHACHT'S SPEECH

.(British Official wireless.) (Rocoivcd September 3, 11 a.m.) RUGBY, September 1. No Ministerial or other official comment is made on tin; speech of Dr. Schacht at Bad-Eilsen, but tho British. Press reaction to the choice which Dr. Sehacht offers to tho nations, naincJy. to lend more money or to receivo nothing on account of past debts is severely unfavourable. "Beforo accopting tho moratorium," says tho "Daily Telegraph," the creditors of Germany will require more than tho assuraneo of.Dr. Schacht that tho capacity to moot obligations has beon exhausted or that Gorman rosources have not been frittered away by her internal policies.

"The Times," affor noting that tho spoeeh, coming no soon after the settloment of the dispute about the Dawes and Young Loans, has created a bad impression, draws attention to the incroaso in the excess of British purchases from Germany over German purchases from Great Britain during the past fow months, "So far as British creditors arc concerned," it adds, "there is even' less validity- than before in the claim that Germany cannot pay her debts because foreign countries will not buy her goods." Proceeding, it says, "Dr. Schacht's version of the position is so one-sided and misleading that it alienates whatever sympathy might otherwise bo felt for Germany in difficulties which very largely she'has created for herself. It would be; nearer tho truth to say that Germany's economic policy liasx been deliberately planned to make an export surplus impossible and thus to provide her with a plausible excuse for refusing to pay her debts."