GERMANY’S PLIGHT

Poverty Bay Herald, Volume LXIII, Issue 19138, 6 October 1936, Page 9

GERMANY’S PLIGHT

SACRIFICE OF PEOPLE ECONOMIC PROBLEMS HITLER’S DIFFICULTIES j LONDON, Sept. 19. , j Herr Hitler has again set Europe guessing. The capitals . anxiously awaited Nuremberg’s grand' finale, expecting a characteristic coup, but this failed to materialise. The viciousness of the German dictator’s verbal attacks on Russia and the extravagance of his references to the Urals and the Ukraine, while unquestionably increasing the anger of the Soviet, are suspected of being to some extent for internal consumption. The conclusion now drawn is that serious restlessness has manifested itself in Germany owing to the economic plight of the country and that this has compelled Hitler to renew his vigorous campaigns to rally the nation. It is known that Germany faces another winter with a shortage of food, and foreign exchange difficulties remain as serious a s ever. Expenditure rises, taxation increases ’ and the people worider how much longer they must' continue their tremendous personal sacrifices without .any alluviat ion. Nobody realises better than Hitler that his attempts to nationalise industries have thus far failed, whereas. Mussolini has achieved the corporate State. ; , THEY COST TOO MUCH Hitler is now intensifying his campaign. Although 'bitterly antagonistic to tho Soviet, he is reported to be deeply interested in the Russian system and somewhat envious because lie fours that Russia is becoming the model National-Socialist State. lie has been paying close attention |o the Russian Youth Movement and likewise to Russia’s terroristic methods. The great Nazi scheme for making Germany independent of foreign raw materials within four years is being watched with the keenest interest.in Britain, and it is evident that the Germans will make titanic efforts to promice economic substitutes for wool, rubber and oil. .... It will be a tremendous test of Ger-i man ingenuity and resources. As has been pointed out, the German Government: has already poured out millions' in developing synthetic, raw materials without outstanding results. Nothing can overcome Germany’s deficiency. . Oil-drilling programmes are already estimated to have cost Germany 2(1,000,000 marks; 165,000,000 marks have been granted for the 'erection' of 12 staple fibre' factories and several hundred million marks have been spent on developing the production of oil from coal. Ac-

credits and subsidies have hitherto been the only method of stimulating the production of raw;materials. Under the new plan, it-is-foreseen thatthe Government will compel industries to erect now works, using their own liquid assets. State aid will be restricted to undertakings lacking the necessary capital. ... it is expected that in'some cases the State will-. guarantee minimum prices for raw materials thus produced and companies will be allowed to issue shares for public subscription, which has hitherto been partly forbidden. AUSTRALIAN PRODUCT The creation of a special raw materials office to organise the scheme on a nation-wide basis is expected to be announced shortly. The plans include the development on a grand scale of the work of finding substitutes, particularly staple fibre. Petrol, rubber ami synthetic substitutes for natural textile materials are already being produced in great quantities. Gerniany supplies 90 per cent of the rayon required for artificial silk, and 20 per Cent of the cloth used for uniforms for Germ.au soldiers is made from yarn substitutes.

Thirty-four thousand tons of sausage skins are imported, largely from Australia, each year, but: such progress, has, been made in finding a synthetic substitute for the naluni! skins -tha 1 ! it is hoped-soon to make Germany independent of this foreign supply. The financial correspondent of the Manchester Guardian expresses tin 1 opinion that Germany will perhaps go farther in replacing cotton wool wi.li 1 artificial fibres,; and .also oil with oil produced from, coal and with industrial alcohol; but fjueh experiments are entirely .uneconomic. The : substitution of home-made ‘‘Buna” rubber would be even more expensive. “Buna” to-day costs three times the price of natural rubber, and is used only on military, postoffice and railway vehicles. For metal and metal-ore supplies from abroad, no substitutes arc available at whatever cost. ‘ The country is dependent up to 50 per cent on foreign supplies. This rate will increase, because Germany’s deposits of iron ore are very poor.

Tlje same applies to non-ferrous metals. Despite extraordinary subsidies, the output of the lead mines increased only, from 52,000 to 57,000 tons from 1933 to 1935.

Despite rigid control of imports and energetic efforts to encourage the production of.> substitutes, Germany’s commodity imports have mostly risen sharply since Hitler’s advent. In several oases the 1935 imports were the largest on record. . .NEW KIND OF “CORK” The .Berlin correspondent of The Times "reports: German ingenuity in producing substitutes for imported raw materials has now been applied to '.cork. ’ It is announced that corks mti'de of poplar wood and coated with cellulose varnish aro being placed on tho market. One lnrge concern bottling German

sparkling wines-is using them exclusively this season. Germany imports annually from Spain and Portugal between seven and ten million marks ’ worth of corks, mostly for the wine industry.