GERMAN AFFAIRS.

Otago Witness, Issue 3510, 21 June 1921, Page 17

GERMAN AFFAIRS.

COAIPANIES PAY BIG DIVIDENDS. LONDON, June 14. The Daily Chronicle describes the revival of the textile industry in Germany in 1920-21. During the nine months ended March she imported 800,190 bales of cotton. N ine spinning and weaving companies paid dividends averaging 25 per cent., plus a bonus. The average unemployment was 4.7 per cent. Thirtythree thousand acres were under flax in 1914, and there are now 172,500 acres, which is 60 pier cent, of Germany’s requirements. HOPES FOR THE FUTURE. LONDON, June 16. The German Australian Steamship Company’s net profits in 1919 and 1920 exceeded two million marks each year, yielding dividends of 10 per cent. The report states that the directors expect the road to Australia to become free at the earliest opportunity. This might already have been the case had Australia onlypermitted the importation of German goods in exchange for Australian wheat, of which Germany had bought large quantities ; but it is anticipated that the Australians’ sound business instinct will overcome the artificially-created war psychosis, and the fact be again recognised that trade between the two countries was not to Germany’s advantage alone, but to even a larger extent to Australia’s advantage. EFFECT ON BRITISH TRADE. LONDON, June 15. Addressing the Institute of Chartered Accountants, Air R. APKenna (a former Chancellor of the Exchequer) pointed out that it is impossible (? possible) to make Germany pay by forcing her to tend the Allies such articles as coal, timber, potash, and sugar. This would mean that much German labour and capital would be withdrawn from manufacture; but that would be a penalty which German industry might properly be called on to pay. It is true that nothing like £400,000,000 a year would be produced by these means, but at least there would be no disturbance with British trade, and no external pressure keeping German wages down to a point which would would ensure her successful competition with us in foreign trade. BERLIN, June 17. Air APKerina’s speech has aroused the keenest interest. Some newspapers interpret it as an admission of Germany’s inability to pay reparations. Others' interpret it as a diabolical plan to check Germany’s industrial power. GERAIAN PUBLIC FLEECED. LONDON, June 15. The Daily Chronicle’s Berlin correspondent states that a gigantic swindle, which recalls the South Sea Bubble, has been revealed. For many months institutions called “sport banks” have been springing up in all parts of Germany, especially in Saxony. By means of a big advertising campaign the public was persuaded to invest, being promised a dividend of 100 per cent., less 5 per cent, for charges after the money had been invested for eight weeks. Dividends were paid for a considerable time. An enormous rush to invest followed, people standing for hours in long queues in order to do so. One Berlin bank advertised that it had paid out 29,000,000 marks since the New Tear. Now two Dresden sport banks have suspended payment, and a run immediately commenced on all the sport banks. The directors in Dresden fled the country, though two have since been arrested. A further big crash is expected. The directors of the sport banks admit that they used the money to carry out betting transactions on racecourses. It is believed that large sums were used to bribe jockeys. An estimate puts the public investments at 1,000,000,000 marks, normally £50.000.000.

Another financial scandal which has been reported involves Germany’s greatest racehorse owner, Leo Levine, and his brother Alax, who have been arrested on a charge of bribing Government officials and prominent members of Parliament in order to smuggle great sums out of Germany. The firm has thus made 700.000,000 marks since the armistice. Levine’s relations in parliamentary circles were utilised to secure a monopoly in leather an « textile army stocks, which they secured at knock-out rates.

The brothers were released on bail of 5,000,000 marks.