GERMAN FINANCE

Poverty Bay Herald, Volume LXIII, Issue 18991, 16 April 1936, Page 10

GERMAN FINANCE

INTERNATIONAL CREDIT DR. SCHACHT'S DEMAND LONDON, April 7. The question of providing international credit for Germany, it is understood, has been discussed by the directors of the Bank of International Settlement, when they met the German Minister tor Economy, Dr. Sehacht, at his country house at Dadenweiler, in the Black Forest, at the week-end. Dr. Sehacht, it is reported, demanded that Germany should be treated as an equal, economically as well as politically, and this is interpreted as meaning that Germany shall have equality of access to raw materials, the possession of colonies, in holding gold, and admission to the international capital market. Recent reports were that Dr. Schacht's resignation was regarded as imminent; but it is now understood that he has greatly strengthened his position with' rferr Hitler, whom he convinced that, in addition to the taxes he is now considering, foreign credits will be essential shortly to get Germany out of her difficulties. Dr. Schacht's strength is that, it is realised that he is the only man in whom foreign bankers have confidence. Thus, Dr. Sehacht, it is reported, is now endeavouring! to convince international bankers that unless they assist him through granting credits, he will be forced from office. He added that if he goes from office, Germany will immediately default in her existing loans from British and other bankers. Herr Hitler's renewed confidence in Dr. Sehacht has been gained despite the bitter' opposition of the Minister for Propaganda, Dr. Goebbels, whose allowance for foreign propaganda lias been drastically reduced under the new financial plans. DEVALUATION OF THE MARK

There is reported to be strong opposition in German orthodox financial quarters to the growing Nazi demands that the mark should be devalued, and linked with sterling. The financiers' proposal is, instead, that wages should be reduced, and other deflationary measures adopted in order to reduce the German price level to permit expansion of the export trade in world markets. The Deutseher Volkswirt, a weekly economic journal, which is closely in touch with Dr. Sehacht, reveals that he is fully aware of the political difficulties facing wage, reduction. The success of the measures depends on their keeping within bearable authority. The journal defends Dr. Schacht's new plan, which consists of rigid supervision of imports, against its critics, especially the exporters. Only rigid supervision, it is pointed out, has made possible imports for rearmament, and any departure from the new plan would only mean the importation of unnecessary luxuries at the expense of vital raw materials.