THE DEBT PROBLEM

Otago Daily Times, Issue 22352, 28 August 1934, Page 7

THE DEBT PROBLEM

BOYCOTT OF GERMAN GOODS PROBABLE EFFECTS OUTLINED (United Press Association.) (By Electric Telegraph—Copyright.) LEIPZIG, August 26. Amplifying bis recent utterances on the import currency restrictions, Dr Schacht (president of the Eeiclisbank), in opening the Autumn Fair, declared that for drastic restriction of imports, to which current agreements must be adapted, Germany would never resort to currency manipulation or dumping, employing only such measures as were sanctioned by short-term and long-term creditors. Germany was not bankrupt, but could, not buy' foreign currency because other countries would, not buy sufficiently from her, which must lead to a breakdown of world trade because forcing transfer agreements on her must create an absolute clearing system, turning the world into a series of isolated fortresses. If German goods were boycotted the sufferers would be foreign exporters and bondholders, Australian woolgrowers, American cotton raisers, etc. Certain foreign Governments had taken grotesque steps to obtain payment of overdue debts. This would not be forgotten, nor would the fact that Germany also had payments overdue to her from her exports.