GERMANY’S PERIL.

Taranaki Daily News, 12 November 1921, Page 5

GERMANY’S PERIL.

“A GENERAL SMASH.” FEAR OF COLLAPSE. FINANCE CRIPPLED. By Telegraph.—Press Afwn —Copyright. Received Nov. 11, 5.5 p.m. London, Nov. 10. The Daily Chronicle’s Berlin correspondent says Herr von Gwinner, one of the creators of the Deutsch Bank, interviewed on the financial situation, says the position is almost as black as it can be. It was preposterous to expect Germany to pay unthinkable sums. He added: “People talk glibly about reparations, but Germany is asked to pay 132,000,000,000 gold marks, representing 8,000,000,000,000 paper marks. The absurdity can be seen when it is remembered that alj the vast amount of paper money Germany has thus far printed is only 100,000,000,000 marks. The army of occupation is costing eleven times the number of marks we spent on our army and navy before the war. The only remedy is that the world must return to its senses. Germany must have breathing space for at least a year; otherwise there will be a general smash, and perhaps the end of the white race in Europe. 'lf our industries suffer badly it will be our Moscow, and the end of Germany.” Continuing, he said: “It is stupid to accuse the German Government of bringing about the fall of the mark. The real course is that the Government had to borrow 27 per cent, of the last reparation payments by means of short loans, which are now being repaid. There is only one way out—we must get together and work the whole thing out. If we don’t we shall be faced with European disaster.”—Aus.N.Z. Cable Assn.