FINANCIAL STRESS

Evening Star, Issue 22067, 28 June 1935, Page 9

FINANCIAL STRESS

POSITION IN GERMANY DANGER OF SUDDEN COLLAPSE Press Association—By Telegraph—Copyright LONDON, June 27. Attention ’ has been drawn in various quarters to Germany’s financial position, and the impression is growing that Herr Hitler will shortly authorise Dr Schacht to make a statement on the subject. Probably only these two men know the whole facts, and disclosure is difficult because the amounts spent on the Rcicliswehr air force cannot be revealed.

The ‘Daily Herald’s’ City editor says: “ Dr Schacht is seriously anxious because the indebtedness has increased by at least £1,000,000,000 under Nazi rule. Moreover, a large part consists of short-term borrowing, which increases the danger of sudden collapse. The Budget takes no account of the extraordinary expenditure on work schemes and armaments. The Government has spent more than £400,000,000 on work plans, including roads. The fear of inflation comes in the fact that 94 per cent, of the Reichsbank’s note cover is now represented by shortterm State bonds, which may easily be worthless unless the position is drastically improved. Insurance companies, savings banks, and industry generally have been compelled to subscribe to forced loans in order to improve the situation. Moreover,. local Nazi organisations are operating an extensive system of blackmail on industrial leaders in their areas under pain of being denounced as anti-Hitler-ites if they refuse levies.”