GERMAN GOVT.’S POLICY

Greymouth Evening Star, 29 August 1932, Page 5

GERMAN GOVT.’S POLICY

FORCED LOAN PROPOSAL HITLERISM TO BE CURBED [BY CABLE PRESS ASSN. COPYRIGHT.] BERLIN, August 27. It is semi-officially announced’ that Chancellor Von Papen will pay a visit to President Von Hindenburg on Monday; in order to report on affairs generally to Germany, and to receive a decree for the dissolution of the Reichstag, such decree to be 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 has chosen the new President of the Chamber. The senior member of the Reichstag is now Frau Klara Zetkin (the working class advocate) who is known as “Mad Clara,” and who has 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 that she will be in Berlin on August 30, and will be ready to preside, despite her age, which is 76 years. She is infirm and nearly blind.

The newspaper “Taglische Rundschau” says, that the basis of the Cabinet’s new plan for economic salvation which is to be explained by Captain Von Papen wil be-the compulsory reduction of the fates of interest after a certain date. All contracts involving interest payments will be voided, and the parties will have to negotiate new arrangements, failing which an arbitrator will decide on the rates of interest to be paid. It is also suggested that a standard rate of interest of 4 per cent ail round-will be aimed at. Otheri papers;.fotecast a strict quota system 1 for German imports, especially of foodstuffs, and an ambitious plan by the Government to finance the provision for employment by means of a compulsory loan, amounting to three or four per cent, on all property except the fixed capital employed in industry and agriculture. Though the commercial press views these proposals with the gravest misgivings, the Bourse remains optimistic, the members contending that the gain to industry from an increased employment and an extensive credit would outweight any drawbacks of a compulsory loan.

CHANCELLOR’S BROADCAST.

(Recd. August 29, 11.30 a.m.) , BERLIN, August 28.

“The signs of the improvement indicate that the bottom of the depression has been reached. All efforts to reinvigorate industry will contribute to an actual revival,” said Chancellor Von Papen, in his broadcast speech, which was relayed throughout Germany.

Outlining the Government's proposals for assisting industry and absorbing the unemployed, Von Papen prefaced his economy programme with a bitter attack on the Nazis-. Referring to the Beuthen sentences, he declared that he opposed the arbitrary use of the law in the interests of one class or party. “That is a Marxist conception, which I reject, . even if it is advocated by Nazis. The impulsive' recklessness manifested by Hitler’s proclamation does not, speak in favour of his claims, to leadership of the Government. I do not concede him the right to consider the minority following his flag as constituting the German nation, and regard all others as outlaws. I am resolved to mete equal justice, using force if necessaryI am determined to extinguish the smouldering fires of civil war, • and suppress the increasing unrest and acts of violence which are hindering Germany’s reconstruction.” Von Papen continued that the Government desired no devaluation of the Reichsmark by currency experiments. The main point was. to end deflation, which caused unemployment Though it proposed an extensive programme of public works, it realised that relief } schemes could not abolish unemployment, therefore, it aimed to induce private industry to employ more workers. The idea of the compulsory loan to raise a hundred million sterling to finance the Government’s plans had been abandoned as impracticable. It was proposed 7 to enlist the existing liquid resources of industry by returning tp the taxpayers in.,the form of certificates, all taxes calculated to hinder production, such as turnover, and property transportation taxes due between November, 1932, and November, 1933, amounting to seventy-five million sterling. Taxpayers would be entitled to borrow from the Reichsbank, amounts equivalent to the certificates, which must be used in business, and be repaid in 1934-3S.' , Additionally thirtyfive millions 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 one and three-quarter million unemployed. 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. Von Papen Concluded with a warning that, though the, Government would adhere to constitutional principles, it declined to surrender authority to the tactical manoeuvres of Reichstag parties. . .. . S