GERMAN ECONOMICS

New Zealand Herald, Volume LXXV, Issue 23123, 23 August 1938, Page 9

GERMAN ECONOMICS

POSITION DEFENDED MINISTER'S STATEMENT BERLIN BOURSE DECLINE OVER-SELLING BLAMED By Telegraph—Press Association—Copyright BERLIN, August 21 The Minister of Economics, Dr. Walter Funk, in opening an Industrial Fair at Konigsberg, said that over-anxious or malevolent persons had taken the recent decline on the Berlin Bourse as proof that Germany's economic position was critical. The recent depi-ession was caused by excessive selling due in the first place to Jews selling securities under the false impression that they would not bo allowed to possess German securities. Jews must not havo any influence on German economics, but there was no reason why a Jew should not possess anonymous securities. To this selling movement was added larger monetary requirements by trade and industry due to the further heavy expansion of production, also to an increase in tho corporation tax which prevented tho realisation of certain expectations of high dividends. It was unbearable that irresponsible and malevolent elements should exploit Bourse movements to influence the general tone of the market unfavourably and create unrest. These endeavours originated from anti-Ger-man circles abroad, but Germans were showing unswerving confidence, said Dr. Funk. This was clearly shown in the recent increaso in savings bank deposits to a record of more than 17,000,000,000 marks. Those responsible for the conduct of tho National Socialist Party's economics would never tolerate anything likely to jeopardise the financing of their great economic tasks. The State would relentlessly deal with the smallest attempt to disturb the mighty work of reconstruction.

WORKERS SCARCE PROPOSED REMEDY TEN-HOUR DAY AGAIN EMERGENCY PRECAUTIONS LONDON, August 21 A conference of industrialists and Nazi leaders has been summoned by Field-Marshal Goering to decide to reintroduce the 10-hour day in Germany so as to minimise the shortage of workers in the armament, building and agricultural industries, which has increased, says the Berlin correspondent of the Daily Telegraph. The employment of women has not remedied the position. Field-Marshal Goering has empowered the Ministry of Agriculture to arrange for the storage of .foodstuffs and grain for a possible emergency, and has also formed a Food Council to supervise the situation. Although London takes a calm view of the German situation, believing Herr Hitler's intention is to frighten rather than fight, it is generally considered that Germany would not be able to fight a long war, having neither command of the seas nor adequate raw materials, while her Italian and Japanese allies are too embarrassed to be of much assistance. The break on the Berlin Bourse dramatically directed attention to the cracks in Germany's economic system. The Financial Times gives prominence to the theory that the State may decide to take over all equities from present owners, replacing them by some form of Government security.