GERMAN POVERTY PLEA.

New Zealand Herald, Volume LIX, Issue 18172, 18 August 1922, Page 7

GERMAN POVERTY PLEA.

BREAD BEFORE REPARATION.

:i DEATH-BED OF NATION."

Australian and N.Z. Cable Association. (Rood. 8.5 p.m.) LONDON, Aug. 17.

The German Chancellor, Dr. Wirth, at an interview accorded to foreign journalists, said: "Germany is steering under f«U sail toward .Austrian conditions. It is absolutely impossible to keep Germany together when her currency is worthless."

Br. Wirth denied M. Poincare's allegations that Germany offered a loan of 4,000,000.000 marks to Czecho-Slo-Vakia, and declared that there was not a word of truth in the statement. M. Poincare's statement that Germany founded banks in Denmaik, Rumania and Holland was equally untrue. German finance had interested itself in banking concerns in Holland merely to enable Q-erman trade to relink itself with the outside world, as all German banks in Allied countries had closed down. If Germany desired to depress her currency by the sale of marks abroad she would K .arcely attempt this through specially published banks. Her present inability 10 pay reparations in gold would be quickly followed by inability to pay in k »id. Yesterday's ' payment of £500.000 to the clearing houso was taken from funds required to purchase foreign fereals for the people's bread. "It is something like being at the deathk*d of a nation,'* said Dr. Wirth. "when °*e surveys the situation. Our great

task ia the next months will be to assure aociai order in Germany. Already there is a serious threat of unrest everywhere." The Berlin correspondent of tho Daily Chronicle reports Dr. Wirth as stating : "Our policy must be first bread for the people, then reparations. We can and will observe our obligations, only so far as assuring the bread supply for our people's physical existence permits. We have goodwill and patienca in a large degree, but our strength is ended. . For mere humanity's sake we must assure the people bread to prevent them from sinking into misery and despair. The difficulties in securing bread have been increased by French action in Alsace-Lor-raine. Only a moratorium extending many months will be of any value. Six months would have been quite sufficient if granted a while ago, but as the mark depreciates a moratorium becomes less and less effective. The psychological effect of a moratorium would have been of great value; that value is now absent. The feeling of danger and uncertainty is one of the worst features of the situation."

Dr. Wirth discussed the flight of capital, declaring that tho best preventive is to make it worth while to keep capital at home. That could best be achieved by stabilising the mark, which could only be done by halving the reparations. "We need confidence," proceeded Dr. Wirth, "for the catastrophe to the mark is due to dwindling confidence caused by fear that Franc© wants Germany's life. That is the great question; tho sword is over our heads.- Tho collapse of Germany would bo an unparalleled thing. If goodwill be introduced into Europe Germany may even yet be saved."

FRENCH FINANCIAL FEELERS PRIVATE SETTLEMENT HINTED

Australian and N.Z. Cable Association. Q>cd. 7.5 p.m.) LONDON. Aug. 16. Tho Berlin correspondent of the Daily News declares that influential French interests are proposing f<> corresponding interests in Germany that in the event of , the Entente breaking up Germany and | Franco should settle their differences privately. Owing to the Alsace expulsions and the ascription of present German ruin to French intransigence, the Germans are not responding sympathetically. It is be- | lieved also that the German Government j would bo equally unresponsive if the j French Government confirmed the invifa. l tion of the financiers.

CLEARING HOUSE DEBT. INSTALMENT NOT PAID. Renter- LONDON. Aue. 16. The German Government has addressed Notes to the British. French, Italian, aad Belgian Governments declaring that owt trig to foreign currency requirements for urgently needed necessaries of life and the fall of the mark it is unable to meet the Clearing House payment of £2,0D0,000 due to-day.

EXCHANGE ON BERLIN.

4400 MARKS TO THE POUND.

Australian and N.Z. Cable Association. (Reed. 8 5 p.m.) LONDON. Aug. 16.

Exchange on Berlin closed to-day at 4400 marks to the pound, after touching 4750.