EVENTS IN GERMANY

Evening Star, Issue 21193, 29 August 1932, Page 9

EVENTS IN GERMANY

OPENING OF REICHSTAG

VIOLENT SCENES EXPECTED Press Association—By Telegraph—Copyright. BERLIN, August 27. It is semi-officially announced that Herr Von Papen’s visit to President Hindenburg on Monday is to report on affairs and receive a decree for a dissolution of the Reichstag, to bo used at the Chancellor’s discretion, as it is regarded as certain that violent scenes will mark the opening of the Reichstag. The rules provide that the senior member shall preside until the President of the Reichstag is chosen. The senior member is Frau Klara Zetkin, known as “Mad Clara,” who lived for some years almost exclusively in Russia. Both the Nationalists and the Nazis declare that they will not allow her to take the chair. Clara says she will be in Berlin on August 30, ready to preside despite her age of seventysix years. She is infirm and nearly blind.

ECONOMIC PLANS

COMPULSORY REDUCTION OF INTEREST. HEREIN, August 27. The newspaper ‘ Taglische Rundschau’ says that the' basis of the Cabinet’s new plan for the economic salvation of the country, which is to be explained by Herr Von Papen on Sunday, will bo a compulsory reduction of interest. After a certain date all contracts will be voided, and the parties will have to negotiate a new arrangement, failing which an arbitrator will decide the rates. It is suggested that a standard of 4 per cent, all round should be aimed at. Other papers forecast a strict quota system for imports, especially foodstuffs, and an ambitious plan by Government finance for the provision of employment by means of a compulsory loan amounting to 3 per cent, or 4 per cent, on all property except fixed capital employed in industry and agriculture. Though the commercial Press views the proposals with the gravest misgivings, the Bourse remains optimistic, contending that the gain to industry from increased employment and the extension of credit would outweigh any drawbacks of a compulsory loan.

BROADCAST BY CHANCELLOR

GOVERNMENT'S ECONOMIC PROGRAMME EFFORTS TO STIMULATE INDUSTRY BERLIN, August 28. (Received August 29. at 11 a.m.) “ Signs of improvement indicate that the bottom of tho depression has been reached. All efforts to rcinvigorato industry will contribute to an actual revival,” said Herr Von Papen, in a broadcast speech, which was relayed throughout Germany. Outlining the Government’s proposals to assist industry to absorb the unemployed, Herr Von Papen prefaced his economic programme with a bitter attack on the Nazis. Referring to the Beuthen sentences he declared that he was opposed to the arbitrary use of the law in the interests of one class or party. “ That is the Marxists’ conception which I reject, even if it is advocated by the Nazis. The impulsive recklessness manifested in Herr Hitler’s proclamation does not speak in favour of his claims for leadership of the Government. I do not concede him the right to consider that the minority following his flag constitutes the German nation and to regard all others as outlaws. I am resolved to mete equal justice, using force if necessary. lam determined to extinguish the smouldering fires of civil war and suppress the increasing unrest and acts of violence which are hindering Germany’s reconstruction.”

Herr Von Papen said the Government desired no devaluation of the Reichsmark by currency experiments. The main point was to end deflation, which caused unemployment. The Government proposed to undertake an extensive programme of public works, but it realised that relief schemes could not abolish unemployment; therefore it aimed at inducing private industry to employ more workers. The idea of a compulsory loan to raise £100,000,000 to finance the Government’s plans had been abandoned as impracticable. It was proposed to enlist the existing liquid resources of industry by returning to the taxpayers in the form of certificates all taxes calculated to hinder production, such as the turnover, property, and transportation taxes due between November, 1932, and November, 1933, amounting to £75,000,000. The taxpayers would be entitled to borrow from the Reichsbank amounts equivalent to the certificates, which must be used in business and be repaid between 1934 and 1838. Additionally, £33,000,000 would be advanced to firms employing more workers on a basis of £2O a year for each additional worker. It was hoped to absorb a total of 1,750,000 unemployed. The employers would be authorised to cut wages, but not below the minimum necessary for existence, and conditionally on the savings being used to engage additional employees. Herr Von Papen concluded with a warning that though the Government would adhere to constitutional principles it declined to surrender its authority to the tactical manoeuvres of the Reichstag parties.