CRISIS IN GERMANY.

New Zealand Herald, Volume LXVII, Issue 20655, 29 August 1930, Page 11

CRISIS IN GERMANY.

CAPITAL LEAVING COUNTRY. ECONOMIC POSITION GRAVE. LONDON. August 27. The Berlin correspondent of the NewsChronicle says the flight of capital from Germany is causing the Government great anxietv. It is estimated that £41.000.000 has left the country since .January, most of which has gone to Switzerland. More recently the. trend has been to Holland. Besides the money sent away by large capitalists small people ore sending their paltrv savings abroad despite the higher rate of interest and the freedom from income tax obtainable if banked in Germany.

Dr. Reinliold, formerly Minister of Finance, brands this flight of capital as a crime. He says there has not been such an exodus of money since the inflation period immediately after the Great War.

Another message from Berlin says the economic crisis in Germany is rapidly becoming worse. Industry after industry is slumping and dismissing workers. liven the Municipal Traflic Company at Berlin has dismissed 1600 men from the staff, rejecting the alternative of holiday shifts. Several potteries and steel works have been closed down owing to bad trade. A great dispute is brewing in the Ruhr mines. The. employers are demanding a 10 per cent, reduction in wages and the unions are seeking an increase of 6d a shift. Negotiations have broken down.