GERMAN DECREE

Hawke's Bay Tribune, Volume XXI, Issue 305, 9 December 1931, Page 7

GERMAN DECREE

AVERTING ECONOMIC COLLAPSE DESPERATE LAST HOPE. WHOLE SOCIAL LIFE OF COUNTRY AFFECTED. (Received 9, 2.45 p.m.) Berlin, Dec. 8. Virtually the whole social life of the country is affected by to-night’s decree reducing prices of coal and iron 10 per cent., rents from 10 to 15 per cent., railway fares, freights and public utilities 25 per eent., interest on bonds and mortgages, from eight to six per cent. All wages of employees and salaries are being reduced to the level of January, 1927, and those of civil servants by nine per cent. Tax dodgers who are living abroad are penalised 25 per cent, of tax, with liability to arrest and gaol if they do not return to Germany within four mouths. AU this is described as a desperate last hope to avert economic collapse, in which connection the banker, Herr Melchoir, told the Bastle conference the alarming fact that Germany’s short term debts on July 1 stood at £600,000,000, instead of the previous estimate of £400,000,000. Bankers appointed a committee to examine the conflicting figures. The chief speculation is whether the emergency decree will bring Hitler into power. Everything depends on the Social Democrats. If they join the Oppositionists in demanding the summoning of the Reichstag, Dr. Bruening is expected to resign, when President. Hindenburg will have no choice but to call on Hitler Dr. Bruening’s wireless talk to the nation, explaining the decrees, contained a virtual threat of martial law, he declaring that the Government would employ every means, even a declaration of a state of siege, against anyone attempting to hinder the Government from functioning. INTERNATIONAL BANKERS’ AGREEMENT. (Received 9, 2.45 p.m.) Parts, Dec. 8. International bankers, including British, representing Germany's short term creditors, reached an agreement to take united action in an attempt to link private credits with repr-ations, to which course the French Government is unequivocally hostile.