ECONOMIC POLICIES

New Zealand Herald, Volume LXXI, Issue 21893, 31 August 1934, Page 11

ECONOMIC POLICIES

DR. SCHACHT AS CRITIC GERMAN SELF-SUFFICIENCY LONDON. August 22 Asserting that tlio world is going from one crisis to another, the President of the German Reichsbank, Dr. Schacht, tohl the representative of a Czech newspaper that international trade would undergo further deterioration if present economic policies were maintained, says the Berlin correspondent of the Times. All the provisional agreements now being concluded, said Dr. Schacht, were of the most doubtful value. Trade was impossible without the certainty of payment for goods. His first care would be to revive absolute confidence in the security of payment. This statement, by itself, promises well, the correspondent states, but Dr. Schacht added that the world's action toward Germany was the 1 greatest historical stupidity and was driving her willy-nilly toward enforced self-suffi-ciency. German capital invested in substitute materials would not bo lost; perhaps some day the forced production of substitutes would prove Germany's blessing. Cotton, like raw sugar, might disappear in favour of artificial fibres. The standard of living would not fall.