GERMAN ECONOMIC CHECK

Taranaki Daily News, 8 October 1928, Page 9

GERMAN ECONOMIC CHECK

j THE RAVAGES OF INFLATION. VICIOUS WAGE AND PRICE CIRCLE. By Telegraph—Press Assn.—Copyright. Received Oct. 7, 5.5 p.m. London, Oct. 6. In a careful analysis of economic conditions in Germany, Mr. Thelwall, British commission counseller at Berlin, says in the Board of Trade Journal that while a tempory setback is being suffered in the home market there is reason to anticipate a real check in the country’s general progress, resulting in merely a slowing-down of the pace of the general recovery from the ravages of inflation which has been too hot to last. A valuable index of the general prosperity last year was shown by the fact thta the total actual dividend distributions by 329 industrial companies quoted on the Stock Exchange showed a 34 per cent, increase over the previous year. Twenty-seven transport companies showed a similar increase of 54 per cent. Mr. Thelwall’s references to the labour situation are of special interest to Australia. He says the most striking feature has been increases of wages and salaries. The system of official arbitration and compulsory awards has cut short many disputes threatening to become prolonged struggles. So far the workers have practically always obtained increases, but the consequent continual upward trend of prices is giving concern. A vicious circle of wage and price increases is unbroken, and no effective step to bring about stability has yet been conceived. I .-=