GERMAN FINANCE

New Zealand Herald, Volume LXXV, Issue 23129, 30 August 1938, Page 11

GERMAN FINANCE

MINISTER'S DEFENCE

DENIAL OF A CRISIS DECLINE ON THE BOURSE "CREATORS OF UNREST" By Telegraph—Press Association—Copyright BERLIN, August 22 A threat to change the financial and commercial systems of Germany if they stood in the way of Nazi progress was made by the Minister of Economics, Herr Walther Funk, when opening a trade fair at Koenigsberg. His address took the form of a counter to the statements of "over-anxious and malicious persons."

Such people, tho Minister said, had seized upon the decline on tho Bourse as evidence of the beginning of a financial crisis. "But," he added, "in an economy strictly guided by tho State, Bourse rates do not possess the same importance as they do in an economy where there is free play of forces. " The reasons for the Bourse declino were: — " (1) Jewish stockholders selling their possessions under the influence of false representations.

" (2) Larger money requirements for trade and industry necessitated by further heavy industrial expansion. " (3) The increase in the corporation tax depressed certain high dividend expectations.

" In the happy German future we will not bo misled by the weak nerves and bad consciences of those endeavouring to create unrest." Herr Funk pointed out that in recent weeks savings deposits liad increased substantially until they had reached a new high record. Nazi economic leadership would not tolerate any stagnation or method of financing which adversely affected the carrying out of its great tasks. Difficulties would be eliminated even if it involved changing methods which had been shown, even temporarily, to be ineffective and unserviceable.