GERMAN FINANCE

Otago Daily Times, Issue 22609, 28 June 1935, Page 9

GERMAN FINANCE

INCREASED INDEBTEDNESS DANGER OF SUDDEN COLLAPSE (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, June 27. (Received June 27, at 10.30 p.m.) Attention has been drawn in various quarters to Germany's financial position, and the impression is growing that Herr Hitler will shortly authorise Dr Schacht to make a statement on the subject. Probably only these two men know the whole facts and disclosure is difficult because the amounts spent on the Reichswehr air force cannot be revealed. The Daily Herald's city editor eays: "Dr Schacht is seriously anxious because the indebtedness has increased by at least £1,000,000,000 under Nazi rule. Moreover, a large part consists of shortterm borrowing, which increases the danger of sudden collapse. The Budget takes no account of the extraordinary expenditure on work schemes and armaments. The Government has spent more than £400,000,000 on work plans, including roads. The fear of inflation comes in the fact that 94\ per cent, of the Reich's bank note cover is now represented by short term state bonds, which may easily be worthless unless the position is drastically improved. Insurance companies, savings banks and industry generally have been compelled to subscribe to forced loans in order to improve the situation. Moreover, local Nazi organisations are operating an extensive system of blackmail on industrial leaders in their areas under pain of being denounced anti-Hitlerites if they refuse levies."