GERMAN INDEBTEDNESS

Hawera Star, Volume LIV, 28 June 1935, Page 5

GERMAN INDEBTEDNESS

INCREASE UNDER NAZI RULE, FEAR OF INFLATION FELT. (United Press Association—By Electric Telegraph CojiyruTht). LONDON, June 27. Attention has been drawn in various quarters to Germany’s financial position and an impression is growing that Herr Hitler, the Leader-Chancellor, Will shortly authorise Dr H. G. H. Schaeht, Minister of Economics, to make a statement on the subject. Probably only these two men know the whole facts, and their disclosure is made difficult because the amounts spent on the Reiehswelir air force cannot be revealed. The ‘.‘Daily Herald’s” City, editor says Dr Schacht is seriously anxious because German indebtedness has increased by at least- £ 1,000,000,(KX) under Nazi rule. Moreover, a largo part of the indebtedness is 'Shoit-term borrowing. which increases the danger of a sudden eollapso. The Budget- takes no account of extraordinary expenditure on work schemes and armaments. The Government has spent more than £400,003,090 on work plans, including roads. The fear of inflation comes in the fact that 97 per cent, of the Reich's bank note cover is now represented by short-term State bands, 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 better the situation. Moreover, local Nazi' organisations are operating an extensive system of blackmail of industrial leaders in their areas under pain of being denounced as antiHitlerites •if they refuse to pay the levies.