DISTRESS IN GERMANY.

New Zealand Herald, Volume LXVIII, Issue 20967, 2 September 1931, Page 8

DISTRESS IN GERMANY.

VISITOR'S OBSERVATIONS. PEOPLE'S SLENDER PURSES. LACR OF WORKING CAPITAL. 9 [FROM OUR OWN CORRESPONDENT.] LONDON. July 10. Mr. H. W. Castle, of Messrs. C. and E Morton, who is the European represent# tive of the New Zealand Honey Producers Board, had the following observations t* make after a recent visit to Germany "The difficulties of selling in Germ am a high-priced food, such as New Zealand honey, are at present so great that only a very limited trade can be done. The German people regard honey as a food—as it is—and the quality of the New Zealand product is known and appreciated ; but slender purses do not permit the general public purchasing at a .time •when the expending of each penny lfas to be carefully considered. We have therefore to 'mark time' in the hope that an improvement in the position will take place before long. • One can, however, see no signs oi: any improvement, and conditions to-day are far worse than on ray previous visit a few months back, and infinitely worse than they wei - e 12 months ag°-"To-day Germany has five million unemployed. Bankruptcies and liquidations are very numerous, and one sees many empty shops even in the best residential areas. In the largo towns, Berlin, Hamburg, Frankfurt, etc., conditions appear to be good; but thiis first impression soon changes when one digs below the surface. Then one discovers a feeling akin to despair on the part of the people—suicides are so common as almost to pass without notice. In Wiesbaden roughly one shop in every seven is empty, and. over 1100 houses aro fo;r sale. The municipality has a deficit ol £250,000. Ill* "Taxation is very high, but owing tc the number of categories under whicl: levies are made it is very difficult for t stranger to arrive at an average percent age. One frequently hears it stated hero that Germany exports freely, that thu value of her exports exceeds the vailue of her imports, and therefore all is well—• she is better off than we are, and on—' but in making such a statement Ger. many's external debt (war reparationj ■etc.), is apparently ignored. Moreover, her exports are falling—April last show, ing a decline erf 20 per cent, compared •with April, 1930. Furthermore, antl morti important., there is the fact that a. largo proportion of the export is possible only through a Government subsidy or thu manufacturers selling at a loss—in either case the nation is poorer and not richer The Government subsidy in some cases il as high sis 25 per cent, of the export i figure. "There is lack of working capil&l for existing business and no possibility o~ , credit facilities for new developments ,While Germany was able to,borrow abroad >—mainly from the United States—all seemed well. She was able to pay he: 1 creditors on borrowed money. For morn than 12 months, however, she has no; keen able to obtain any loans, and tho real position is revealed. In Bavariu there is much distress, if not actual Starvation."»