FINANCES OF GERMANY

Taranaki Daily News, 22 July 1929, Page 11

FINANCES OF GERMANY

REPARATIONS PAID TO TIME DISTINCTLY OPTIMISTIC. TONE WARNING ABOUT SPENDING By Telegraph—Press Assn.—Copyright. Received July 21, 11 p.m. United Service. London, July 20. Mr. Parker Gilbert’s interim report on reparations for the first nine months of the fifth annuity year ending May 31 is distinctly optimistic in tone regarding Germany’s present position and future economic and financial development. ' Germany has made, as previously, punctual payments without interfering with the stability of German currency.

Mr. Gilbert, however, again warns Germany to keep down expenditure and pay from existing revenue. There has been great productivity of revenues, but a constantly increasing level of expenditure, going even beyond the rising revenues and necessitating extensive borrowings and creating much tension in Germany’s finances. Mr. Gilbert considers the Young plan provides opportunity . for the development of a sound financial programme, not merely because of the reduction in annuities, but because of the finality, which, removes uncertainty as to the extent of Germany’s reparations obligations.

Mr. Gilbert is convinced that budgetary difficulties have thrown no doubt on the essential soundness of Reich finances. Germany’s exports continue to rise while imports continue to remain below the high level of last year.