GERMAN CRISIS

Otago Daily Times, Issue 23578, 15 August 1938, Page 9

GERMAN CRISIS

ECONOMIC DEVELOPMENTS CONSIDERABLE APPREHENSION FALLS ON BERLIN BOURSE (United Press Association) (By Electric Telegraph—Copyright) LONDON, Aug. 12. The question uppermost in the minds of city business men is what significance is attached to the dramatic falls on the Berlin Bourse. The official German explanation is that the decline is due to heavy sales by Jews fearing that they will not , be allowed to hold industrial securities, but it is believed in London that the real reasons are more serious. Germany’s growing adverse balance of trade is causing grave concern, while internal factors even more alarming. Reports from Germanyw indicate that unrest and apprehension are mounting, especially as it is feared that the Government may embark on more dangerous foreign adventures. Moreover, the Government’s demands are exceeding the country’s productive capacity. The Government has embarked not only on vast capital schemes in Austria and enormous refortification expenditure, but simultaneously Herr Hitler is personally sponsoring the rebuilding of five of Germany’s largest cities. Costs and Taxation The shortage of labour is acute. Industry and agriculture need 700,000 men and 17,000 engineers. Production costs are mounting and taxation is rising in view of the difficulty of borrowing. The situation in Italy is also so disquieting that the Department of Overseas Trade has warned exporters to exercise the utmost care in trading, as Italian payments are again falling into arrears. The s. political fears which are partly responsible for the German crisis are also reflected in the London bullion and foreign exchange markets. The total losses of the Equalisation Fund from gold sales have been estimated at £90,000,000 in the past fortnight. LABOUR SHORTAGE ITALIAN WORKERS FOR GERMANY ROME, Aug. 12. Negotiations are proceeding to despatch industrial workers to Germany. Thirty thousand Italian agricultural workers have gone to Germany already.