GERMANY'S FINANCES

Otago Witness, Issue 4048, 13 October 1931, Page 27

GERMANY'S FINANCES

THE POSITION DESPERATE VIGILANCE OF GOVERNMENT. LONDON, October 7. The Berlin correspondent of the NewsChronicle states that the financial tension is most acute and only the utmost effort and vigilance are enabling the Government to maintain the gold standard. Two more banks have been closed. The Prussian Government has announced that full payment to the civil servants for a month, due on October 10, is impossible. It is feared that Dr Bruening’s authority, which is the chief safeguard against economic chaos, is weakening. Herr Hitler believes that his hour of destiny is about to strike.

RESIGNATION OF CABINET EMERGENCY DECREE ISSUED. BERLIN, October 7. The Cabinet has resigned. Germany’s political crisis is the aftermath of the desperate financial economic position, and may have incalculable consequences. An emergency decree issued by President Hindenburg establishes a rigid dictatorship, suspends the constitutional rights of the nation, including the inviolability of personal freedom and the free expression of thought by medium of the press, and imposes a censorship on telegraphs, telephones and films. HIGHLY-PAID EMPLOYEES. REDUCTION IN SALARIES. LONDON, October 7. Though the dissolution of the British Parliament has favourably influenced the European stock markets, there is still intense nervousness at the turn of events in Germany. All the benefits of the Hoover moratorium in Germany have been wiped out by the loss of taxation through the general shrinkage of incomes. To-day’s emergency decree permits private employers to reduce the salaries of highly-paid employees, despite contracts. NEW CABINET FORMED BERLIN, October 9. Dr Bruening has formed his Cabinet. Dr Bruening will hold the Foreign Office, Herr Dietrich Finance, Herr Warmbold Economics, Dr Stegerwald Labour, Herr Groener Defence, Dr Joel Justice, Dr Schiele Agriculture, Herr Treviranus Transport and Dr Schaetzel Posts. October 10. A strong force of police kept the crowds outside the barricades in the Welhelmstrasse when Herr Hitler arrived to see President Hindenburg. The interview lasted 45 minutes. In accordance with custom, the proceedings were secret, but it is understood there was a frank exchange of views, President Hindenburg expressing the opinion that nothing must be done by the Nationalists to make the situation worse.