REICH FINANCES

New Zealand Herald, Volume LXXVI, Issue 23431, 22 August 1939, Page 9

REICH FINANCES

CRISIS DEVELOPING CONVICTION IN BERLIN IMPENDING DISASTER RUTHLESS METHODS NEEDED LONDON, Aug. IS [Reports that a grave financial crisis is ■ developing in Germany receive much prominence in the London financial journals. The correspondent of the Financial News in Berlin sa.vs that there are persistent rumours that Dr. Schacht, the displaced head of the Reichsbank, was recalled secretly and received hy Herr Hitler at Berclitesgaden, preparatory to his resuming a decisive role in the management of German economics. The rumours, the correspondent states, are a reflection of the conviction that the long-expected climax has been reached. This conviction prevails throughout Berlin business and hanking circles, which believe that only Dr. Schacht's ruthless methods are capable of saving the Reich from impending disaster.

Other steps, the correspondent goes on, might postpone, but not avert, a catastrophe. Doubts exist whether the Nazis' regime could accept Dr. Schacht's proposals because they Would undoubtedly include a revision of the armaments programme and a modification of many features of Goering's fouryear economics plan. Reichsbank figures prove that the decline in the country's finances is not due to seasonal influences.

According ■ to the Berlin correspondent of tlie Financial Times, the Reich's financial machinery still gives an appearance of operating smoothly, hut both men and machines are being worn out, and the financial structure is showing signs of weariness.

Manufacturers, he adds, complain of slackness and a decline in discipline among factory workers. The Treasury also has grounds to complain about the lack .of financial discipline, on the part of business men and bankers. GOVERNMENT OFFICES , DECENTRALISATION PLAN CONSIDERATION IN LONDON By Telegraph—Press Association—Copyright (Received August 21, 5.5 p.m.) British Wireless LONDON, Aug. 20 Plnns for the gradual decentralisation of i, Government offices nro under consideration. They are not essentially connected with the precautionary measures for ft national emergency, although it is recognised that a wider distribution of administrative activity -would have a great advantage from that point of view, as well as relieving congestion.