GERMANY’S PLIGHT

Greymouth Evening Star, 14 March 1936, Page 7

GERMANY’S PLIGHT

FACING BANKRUPTCY DR. SCHACHT’S WARNING [BY CABLE —PRESS ASSN. —COPYRIGHT.] (Received March 14, 11.20 a.m.) LONDON, March 13. The “Morning Post’s” Berlin correspondent declares that if the full truth of Germany’s financial and economic situation were generally known, it would lead to a panic throughout the country. It is understood that the new budget will not only provide for further increases in taxation, to finance the prodigious armament expenditure, but it is expected that Government servants will be obliged to contribute a portion of their salaries, and capitalists to surrender two pqr cent of their capital, to the War Ministry. The cost of living has increased so sharply that these and similar measures are likely to be most unpopular. Therefore, Herr Hitler sent troops to the Rhineland, to persuade the taxpayers that they were getting something for their money. , Financial authorities describe the situation as not immediately, but potentially, desperate. . Dr. Schacht claims that there should be more control of the gigantic armament expenditure, but this is vigorously opposed by the General Staff and Krupps. Dr. Schacht is reported to have told Hitler, in the plainest language, that he must consider a four per cent, capital levy, a 30 per cent, excess profit tax, and a five per cent, cut in wages, to avert bankruptcy.

It is no secret that Hitler/ is incensed with Dr Schacht, and decided upon the Rhineland action, not only in the teeth of his advice, but also against the counsels of the German General Staff and the Foreign League officials, who do not favour a return to the League.

DISCONTENT IN BERLIN.

LONDON, March 13

The “Manchester Guardian’s” diplomatic correspondent says: There is more uneasiness in Berlin than has been allowed to leak out. Every symptom of discontent is hushed up. Berlin is covered with posters, offering “all responsible persons to spy out those seeking to sabotage German unity, and report them to the. local Nazi headquarters.” There has been a run on the Savings Banks, resulting in restrictions being imposed, preventing anyone withdrawing more than fifty marks.