GERMAN INDEBTEDNESS

Otago Daily Times, Issue 23671, 1 December 1938, Page 11

GERMAN INDEBTEDNESS

REPORTS EXAGGERATED STATEMENT BY DR SCHACHT (United Press Association) (By Electric Telegraph—Copyright) BERLIN, Nov. 30. (Received Nov. 30, at 11.15 p.m.) Dr Schacht told economists that the reports of German indebtedness were exaggerated. Marks circulating in 1929 totalled 2,980,000,000, compared with 7,930,000,000 for the first 10 months of 1938. The trade balance in 1934 showed a deficit of 284,000,000 marks, converted in 1937 to a surplus of 443,000,000 marks. DANGER OF BANKRUPTCY GERMAN INSURANCE COMPANIES LONDON, Nov. 29. (Received Nov. 30, at 11.55 p.m.) The News Chronicle's Berlin correspondent says that many insurance companies are in danger of bankruptcy as the result of an order to pay to the Government damages estimated at over £50,000,000 due to Jews. Most German companies were reinsured with British companies, which are refusing liability on the grounds, firstly, that damages are claimed under civil commotion clauses, which are cut out of contracts by Germans, or where the clause remains it is argued that civil commotion cannot occur in an authoritarian Stfate; secondly, it can be proved that the damage was organised with the connivance of the Government, therefore it was an act sovereignty that cannot be covered by insurance; thirdly, both the police and the firemen were remiss.