GERMANY

Nelson Evening Mail, Volume LXI, 9 November 1927, Page 5

GERMANY

CATASTROPHE THREATENED IF FINANCIAL POLICY NOT REORGANISED DEPRESSION IN’ INDUSTRIAL SHARES (By Eleotrlo " Telegraph—Copyright) Australian A N.Z. Cable Association)

BERLIN, 7th Nov. The Glanzstaff Artificial Silk Company’s shares fell from 561 to 515, and the depression was accentuated by an announcement that the German Steel Trust expressed the opinion that Germany must reorganise her ’ financial policy if an economic and industrial catastrophe was to he avoided. Higher wages and shorter hours are reducing profits despite technical improvements in the coal, iron, and steel industries. Steel Trust shares are at the record low point of 95£. Apparently the Trust is refraining from deciding on a dividend until it knows whether the eight hours day will be introduced at the new year.

AMERICAN VIEW

WASHINGTON, 7th Nov.

There is evidence here that the State Treasury Department is in full accord with Mr Parker Gilbert’s warning to the German Government. It is understood that the State Department policy of supervising loans floated in the United States by foreign interests would he employed to the full in the event of later developments transpiring, as indicated, that the German Central and State Governments are not prepared to effect the reforms, which Mr Gilbert feels are essential. Emphasis is laid by the Treasury Department on that portion of Mr Gilbert’s statement which points mi£ that there ip still lime for readjustment of German financial policies to avert a crisis, and it is apparently hoped that Germany will accept the warning in the helpful spirit in which it is offered, and set its fiscal house in order.