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Hokitika Guardian, 15 July 1931, Page 4

When President Hoover’s Moratorium was first proposed, the prospect of even temporary relief from the heavy reparation charges naturally caused great rejoicing in Germany. But the German Chancellor, who is compelled toukeep a, careful eye on the national finance, warned his people that “the American plan would not end all its troubles.” More specifically, Dr. Bruening stated that the Moratorium “would not afford l any relief to Germany’s taxpayers or the unemployed.” For the financial position is such that, “to put Germany’s house in order” and balance the Budget, measures are needed surpassing in stringency even the recent financial decrees which brought the country almost to the verge of revolution. This plain speaking seems to have disillusioned and disheartened the German people, and tneir disappointment was intensified by the delay in the negotiations caused by France’s .objections and the nec-

essity for adjusting them to the conditions laid down by Mr Hoover. Apparently these difficulties have been got over, but in the* interval Germany has relapsed into a very dubious and precarious financial condition. The internal condition of the country is simply deplorable. ' At least 4,030,000 unemployed wage-earneis, with 8,069,000 dependents, are living on the duie, which at best is only a miserable pittance, and there are 1,500,000 middlecless unemplyoed whose plight is said to be even worse. What with unemployment, the collapse of trade, and the political dangers threatened by the Nazis or National Socialists, on the one hand, and the Communists on the other, the whole system of social and national 1 ' life, says an exchange, lias, been "shaken to its foundations; and one of the many ominous signs of the times in Germany is the flight of capital. Within the past twelve months £200,000,000 of capital has been withdrawn from Germany, and half of this huge sum Jolt the country in June. Tiie Bank of England, with the cooperation -of the leading French and American banks, recently granted' to the Reichsbank credits amounting to £25,000,000, to maintain the stability of the currency. But. this is‘only a temporary expedient and the continued withdrawal of foreign credits would speedily reduce tbe country to insolvency, All this shows that Air Hoover’s proposal for a Moratorium, so far as Germany is concerned;-was not made a. moment too soon; and now that the way seems, .cleared, for its acceptance, it is to be hoped that-this welcome relief will at once produce a favourable reaction on. Germ a ny’s financial and industrial condition,