GERMANY'S BIG PUSH

New Zealand Herald, Volume LXIX, Issue 21281, 7 September 1932, Page 9

GERMANY'S BIG PUSH

AID TO INDUSTRY TAX BONUS SCHEME FUNDS FOE BUSINESSES • DEC-BEES NOW IN FORCE CREATING EMPLOYMENT By Telegraph—Press Association— Copyright (Received September C. 7.5 p.m.) BERLIN. Sept, 6 Midnight saw the beginning of Germany's big push. The President's decrees hv the Chancellor, Herr von Papen, a. week ago, then became law. It is expected that the tax bonus jchemo will result in £100.000.000 of credits'being placed at tho disposal of industry. Among the decrees signed by Marshal TOP Hindcnburg is one authorising employers to reduce wages by 12£ to 20 per cent, provided that they increase the number of hands employed by onequarter. Generally speaking, the greater the addition an employer makes to hi? staff the larger will be the permissible reduction in pay.

In the course of a broadcast speech, on lAusrugt 28. Hen- von Papen said the idea of a compulsory loan to raise £100,000.000 with which to finance the Government's plans had been abandoned as impracticable Itf was proposed to enlist the existing liquid resources of industry by turning to the taxpayers in the form of certificates all taxes calculated to hinder production, such as the turnover, property and transportation faxes due between November, 1932, and November, 1953, amounting 'to £75.000,000. The taxpayers would be entitled to borrow from the Reichsbank amounts equivalent to their certificates, which must be used in their business, and be repaid Detwcen 1934 and 1958. / " , In addition £35.000,000 would be advanced to firms which employed more workers, on a basis of £2O a year for each additional worker. The Government hoped to abs<?rb a total of 1,750,000 unemployed in this way. The employers would be authorised .to cut wages, but not below the minimum, necessary for existence and on condition fhfjt the savings were used to engage additional employees.