GERMAN CRISIS

Taranaki Daily News, 14 October 1930, Page 7

GERMAN CRISIS

HUGE FLIGHT OF CAPITAL

CHANCELLOR’S DIFFICULTIES

alarming export of gold

bruening faces defeat

LOAN FLOATED IN AMERICA

By Telegraph—Press Assn.— Copyright. Rec. 10.45 p.m. ' Berlin, Oct. 13. The survival of the Democratic Government is a problem the Reichstag will have to .face when the session opens to-dayi No German Chancellor has had to face a more difficult situation .than docs Herr Bruening. The chief hope of the Government is Socialist help, as the Socialists are expected to vote for urgent financial measures upon which Germany’s chance of securing foreign loans depends.

The meeting of the Reichstag will certainly be stormy as the failure to\ stop the export of gold has frightened all parties. The newspaper Vorwaerts estimates the flight of capital since September 14 at £50,000,000 while the falls ij? stocks alnd shares quoted on the Berlin bourse during the month total between £40,000,00.0 and £50,000,000. . . The Reichstag has concluded/arrangements for a foreign two-year loan of £25,000,000 at a rate averaging 6,3 per cent.', well below the Young loan. Nevertheless the flight continues; the demand for foreign bills on the Reichsbank totalled £50,000,000 within three days. The anxiety to invest in foreign iri preference to German securities is reminiscent of the beginning of the currency debacle in 1923. It is understood the loan is due to American financiers. American opinion, ijnfike European, is not alarmed by the apparent strength of the Hitlerite element in the Reichstag but is impressed by the drastic financial reforms Herr Bruening has initiated. The loan is a feather in the. caps of Herr Bruening and Herr D.,Luther, head of the Reichsbank. ' : ■

HITLERITES ALARMING FRANCE 7' ' 7 _____ ' / GREATER DEFENCES DEMANDED Paris, Oct. 12. Events in Germany are causing increased alarm in France. The recent Remarkable procession of Steel Helmets at Coblenz resulted in a resolution by the National Union of ex-Servicemen describing this as a, provocative and bellicose reply to France’s most generous acts and demanding a reinforcement of France’s defences in the interests of peace. . : Le Journal des Debats says: “The events in Germany mean that the whole policy of the liquidation of the war has erumbled.”