GERMAN REPARATIONS

Grey River Argus, 22 November 1928, Page 5

GERMAN REPARATIONS

BORROWINGS EQUAL PAYMENTS. LONDON. November 20. “The final reparations settlement must bo one not exceeding Germany’s capacity to pay from hen own resources, and not endangering the standard of her people,” declared Dr Stresemann, in the Reichstag. The “Morning Post’s” Berlin correspondent, discussing the factors the experts must consider, says: Germany lias been able to increase her Budget expenditure very substantially in 1928. Industrial production in 1928 was. roughly, 25 per centum above the average for 1924-25 standard of living. The wages of skilled and unskilled and savings’ bank deposits have risen materially. The other side of the picture is Germany’s net borrowing from abroad froffi January 1. 1925, to May 31, 1928, amounted to 242 J millions sterling, almost exactly the equivalent amount paid out in reparations annuities. It will be asked to what extent is Germany dependent on foreign capital in future, aud to what extent are foregn investors prepared to maintain the supply. The last four years have been years of artificially stimulated reconstruction following ten years’ stagnation. Is it humanly possible to determine upon a brief experience of what Germany, is able to bear twenty years hence?

MOTION TO REDUCE PAYMENTS DEFEATED. BERLIN, November 20. The Reichstag, by 21 9to 78 votes, rejected the Nationalist motion demanding the reduction of reparation payments by fifty thousand sterling annually, and the devotion of. money to agricultural relief. The motion was regarded as tantamount to no confidence in Dr Stresemaun.