GERMANY'S TROUBLES.

Otago Witness, Issue 3525, 4 October 1921, Page 17

GERMANY'S TROUBLES.

PANIC IN BERLIN. BERLIN, September 27. The continuous fall of the mark is resulting in a panic. During the day 424 maTks were paid for an English pound, and later 470 marks compared with 20± before the war. One hundred and twentyseven marks were offered for‘the American dollar. The fall is attributed to German industrialists buying foreign raw material too heavily in order to take advantage of the possibility of selling manufactured products on favourable terms. It is also said that the Reichsbank is buying foreign currency in large quantities' for reparation payments. The third reason is that speculators in Holland, Sweden, Denmark, and Switzerland, who hold great quantities of marks, are now desirous of selling and cutting their losses. EXPORTS TO UNITED KINGDOM. LONDON, September 28. The imports of German goods into the United Kingdom are increasing. The August returns include increases in iron and steel, £73,000: toys and gam's, £66,000; dyestuffs, £30,000; paper and cardboard, £30,000; glassware, £13,000; cutlery, £5,000. THE APPLICATION OF SCIENCE. LONDON, September 28. The Morning Post’s special correspondent at Berlin emphasises the hunt for uidustrial economies in raw material, labour, and time, also the endeavour in the export trade to make up in quality what has been lost in quantity, in order that sheer merit may force an entry for German goods into hostile markets. Thus the coal mines, the ore mines, the smelting works, the rolling mills, the locomotive shops, and the distributing firms are forming a long chain of industries, running the gamut from the raw material to the finished product. In order to pay the reparations, Germany must carry still further the start she got over the rest of the world by applying science to industry. The correspondent’s final conclusion is that Germany is determined to pay in order to buy back her freedom. Germany will become one humming workshop of scientifically-run industry. It is an interesting speculation regarding wliat will be tHo relative position of Germany and her present-day dictators when, after years of high pressure in production, the last penny of the reparations is paid.

DECLINE OF THE MARK. LONDON, September 28. The Berlin correspondent of the Daily Express reports that the overshadowing question of the hour is, “Will the pou l l reach 500?” At one time on Wednesday 490 marks were quoted to the pound. This catastrophic fall caused such nervousness tnat it is stopping all business. Nevertheless shares on the German Stock Exchange are rising in a startling fashion. Rises cf 250 points in a day are common. Some mining shares have risen over 2000 points. Frantic speculation is universal. An indication that the confusion is due to the slump in the value of the mark i 3 furnished by the fact that the prices of goods in the shops are constantly changing. When the price of an article is asked, the assistant says: “Excuse me a minute while I ask the manager of the department how much rice has risen during the last hour.” There is a general feeling that the climax is coming. It is impossible f-or Germ in finance to continue to run amok. September 29. Lord Inchcape, speaking at Glasgow, said the fall of the mark helped Germany to export certain goods at prices with which our could not now compete, but if Germany sold cheaply we would buy cheaply, and the more Germany exported the more rapidly the mark would recover. The only way to avert a fall in the mark was the encouragement of German exports. Tlie fluctuations of the mark are arousing a fierce gambling spirit in all classes in London. Hundreds are purchasing, and orders are flooding the city firms. A prominent banker informed the Daily Express that there were possibly 10,000,000,000,000 marks held in London. REPARATIONS. PARIS, September 23. M. Briand informed the German Ambassador that the economic sanctions will i,o removed on Friday. M. Briand informed the French Cabin.■! that the Allies had agreed to establish control of the Rhenish frontier after the raising of the economic sanctions, and that the German Government had accepted the new conditions. September 30. The British financial experts on the Reparations Commission have raised an objection to the Wiesbaden agreement, which was recently concluded between Germany and France, in regard to the method of payments by Germany. The objection is based on the ground that the agreement creates a priority enabling France to receive more in four years than the agreement between the Allies pro vides for. THE EXPORT TAX. BERLIN, September 30. A conference of representatives of the federated German industries suggested that Germany must make every effort to increase her exports to such an extent that the world will be made to realise that the economic burden placed upon her means ruin to other lands Dr Becher asserted that the loss through unemployment in England, due to German competition, was greater than any indemnity England would receive from Germany. GERMANY’S INDUSTRIAL RECOVERY. LONDON, October 1. Sir Joseph Ward, in a letter to the Sunday Times, states that he recently visited Germany, where he investigated economic conditions. The Germans had embarked on a policy of commercial development which would gradually but effectively make them more powerful competitors of Great Britain than before the war unless we alter our ways, and work harder. There is a pronounced feeling among German business men and workers against re-creating a, large army and navy. They want a peace policy. ANOTHER EXPLOSION. BERLIN, September 28. A blast furnace in metal works at A’arel, near Oldenburg, exploded. Eight men were killed and many injured. WIDESPREAD PLOTS DISCOVERED. BERLIN, October 1. In the Reichstag, the Chancellor trounced the German Nationalists, declaring their manoeuvres were not conducive ,to the country’s welfare during the present crisis. Their attitude of aloofness was detrimental to Germany’s foreign policy. The reactionary plottings were even more serious than was feared. Secret organisations had been discovered, stretching from Baden to Upper Silesia, aiming at the overthrow of the Constitution. They had recently endeavoured to accomplish another Kapp insurrection. The Chancellor declined to give further details, as the problem was under investigation. He appealed to Germans to protect the Republic from a downfall. GERMAN SOCIALISTS. LONDON, October 1. The Daily Telegraph's Berlin correspondent states that the majority of the Socialists are displaying increasing opposition to party Congress decision stressing the advisability of co-operating with other parties to ensure a continuance of a democratic republic and to bring the State nearer to the attainment of Socialistic aims, instead of waiting till the party is able to undertake the government alone. The Spandau Socialists overwhelmingly rejected the decision demanding joint action with the Independents. WA RRIN G WORKMEN. BERLIN, September 60. The Polish and German workmen, waiving their differences, have united in a joint demand for compensation for the loss of work incurred through the German-

Polish fighting last May, and are threatening a general strike unless the Interallied Commission or their employers surrender. Demonstrations took place at Appeln, Kattov.itz, and Beuthen in which 250,000 workers of both races took part in a procession. The Interallied Commissioners are sympathetic, but declare they have no funds; the employers say they have suffered such losses through insurrection that it is impossible to grant compensation. HOHENZOLLERN ESTATES. BERLIN, September 30. The newspaper Vorwaerts publisbea revelations of the manner in which the accounts of the Hohenzollern estates ar© manipulated, in order to escape the payjl of income tax. The net revenue m 1920 was 25,000,000 marks, of which 10,000,000 have been allocated to a depreciation fund. The Prussian Government is investigating the evasions, as all renewals have been raid out of current revenue. Thus far Wilhelm and his sons have not paid a halfpenny in taxation though there are three years’ owing. PEACE TREATY WITH AMERICA. BERLIN, October 1. t he Reichstag has ratified the American t eace Treaty, all parties except the Communists supporting the President, who formally announced the restoration of ralaturns with America.