Financial Constitution of Germany

Manawatu Times, Volume LIV, Issue 7269, 23 September 1933, Page 7

Financial Constitution of Germany

Sweeping Changes Promised

GOVERNMENT CONTROL OF REICHSBANK

United Press Association —By Electric Telegraph—Copyright. Received Friday, 7.3o_p.ni. BERLIN, Sept. 22.

Drastic changes in tho financial consitution of Germany "were foreshadowed by Herr Schacht in a conference with Press representatives. The Council of tho Reichsbank, which has always opposed inflation, is destined to disappear, Herr Schacht declared, and tho President of the Reichsbank may not practise any other policy tnan that of the Government. Nevertheless, he insisted that tho money necessary for the movement of trade existed, and if more were needed, the bank could furnish it without danger of inflation.

The present backing of Reichsbank notes by gold and foroign currencies would be abandoned and fixed interest bonds purchased by tho bank in the open market, or accepted as security for loans, would be available as a cover for tho bank’s issue.

Holland Determined to Stick to Gold Standard

LOWER STANDARD OF LIVING INEVITABLE

Received Friday, 7.30 p.m. THE HAGUE, Sept. 21

Holland is balancing its Budget deficit of 270,000,000 florins by imposing jiew economies and taxation. The Finance "Minister says that the gold standard must bo maintained. The Government has refused to experiment with curroncy; accordingly, it is necessary that Holland should adjust herself to a lower standard of living.

Mr Montagu Norman and

Currency

“NOT WHOLLY RESPONSIBLE”

Received Friday, 8.55 p.m. LONDON, Sept. 22.

Mr. Montagu Norman, at tho halfyearly meeting of the Governors of the Bank of England, said: “I hope I can dissociate myself for the future from connection with currency. lam not wholly responsible for some of these questions, which lio elsewhere.”