ECONOMIC PLAN

New Zealand Herald, Volume LXIX, Issue 21273, 29 August 1932, Page 9

ECONOMIC PLAN

PROVISION OF EMPLOYMENT COMPULSORY LOAN PROBABLE (Received August 28, 5.5 p.m.) BERLIN, Aug. 27 The Taglische Rundschau says the basis of the German Cabinet's new plan for the economic salvation of the country is to be explained by the Chancellor, Herr von Papen, to-morrow. It. will be compulsory to make a reduction in interest rates. After a certain date all contracts involving interest payments will be voided and the parties will have to negotiate new arrangements, failing which an arbitrator will decide the rates. The paper suggests that a standard 4 per cent all round will be aimed at. Other journals forcast a strict quota system for imports, especially foodstuffs, and an ambitious plan by the Government to finance the provision of employment by means of a compulsory loan amounting to, 3 or 4 per cent on all property except fixed capital employed in industry and agriculture. Although the commercial press views the proposals with very grave misgivings tiie Bourse remains optimistic, contending that the gain to industry from increased employment and an extension of credit would outweigh any drawbacks of a compulsory loan.