FINANCE IN GERMANY

New Zealand Herald, Volume LXXV, Issue 23012, 13 April 1938, Page 23

FINANCE IN GERMANY

POLICY OF TRADING DEUTSCHE BANK CHAIRMAN The national financing of Germany under the prevailing system of trade by barter was discussed by Herr J. Hasslacher, a prominent industrialist and chairman of the board of directors of the Deutsche Bank, when, with Frau Hasslacher, he arrived at Auckland on the cruise liner Reliance. Through an interpreter lie intimated that he was unable to say much about the financial situation in Germany, but he answered several questions relating to the Government's fiscal policy. Herr Hasslacher said the gold standard had been discarded and finance was based on the possession of foreign money, which on account of •scarcity,had to be controlled. They were unable to do any cash transections and were compelled to buy just as much from other countries as other countries were prepared to buy from them. There was only one exception, in the case of the United Kingdom, which purchased more from Germany than Germany bought from her and, with tlio surplus of English pounds, Germany was able to pay her debts to other countries. Questioned regarding the recent agreement effected with New Zealand, Herr Hasslacher said ho was unable to indicate at the present time whether trade would be heavy between the two countries, but ho stressed the fact that Germany would be pleased to take the Dominion's wool, butter and meat in exchange for her machinery aud chemicals. The agreement had been favourably commented upon in commercial circles in Germany. After referring to the rapid development of German industries in recent yeax-s, Herr Hasslacher said banking business was showing an upward tendency. Industrial firms had a largo turnover ami there was a general feeling of satisfaction throughout the country.