GERMAN DEBT PROBLEM

Hawke's Bay Tribune, Volume XXI, Issue 303, 7 December 1931, Page 8

GERMAN DEBT PROBLEM

EFFECT ON WALL STREET. VIOLENT BREAK IN STOCKS. New York. Dec. 5. The German debt problem and the possibility c. Germany dropping the gold standard, though the latter move, it is regarded, will occur only as a matter of a last resort, was held re sponsible to-day for a violent break in stocks. There was a fall in grains, a softness in bank shares and a drop to a new low level of all German bonds. A long list of German issues sold at 16 to 25 per cent, of par value International sJ’s are selling at 25 for the first time, against 91 which was offering 18 months ago. In addition United States steels reached new low levels for a bear market. “MONSTROUS EXTORTION.” Berlin, Dec. 5. Herr Hitler, on receiving journalists, predicted the advent of his party to power within a few weeks, certainly a few months. He declared Germany was unable to pay both her reparationand commercial debts. In order to do so, she must export goods to the value of £2,500,000,000 to £3,000,000,000 yearly which was impossible. The Nazi Government would be prepared to honour private debts, but would be unwilling to pay the monstrous extortion passing under the name of reparations.