GERMAN REPARATIONS.

Taranaki Daily News, 8 June 1931, Page 6

GERMAN REPARATIONS.

The statement made that Germany is likely to seek some relief from reparation payments cither by postponement or reduction will not surprise those who have made any study of economic conditions in that country. Despite long hours of labour and harder work on the part of the nation generally Germany is suffering almost as harshly as. any country in Europe from the evils of unemployment. What is still graver is that there is growing amongst her people a feeling of despair, which is being exploited by the worst type of political leader. Of what use is all the sacrifice the nation is called upon to make, they ask, when all the fruits thereof go to the payment of reparations to foreigners. The result was seen in the success of the “Hitlerites” in the last election. Their programme may be summarised as being “Germany for the Germans, and repudiation of war debts.” The' more stable elements know what the cost of repudiation would be to Germany, and so far have kept control of the national policy. If they seek relief it will be by constitutional methods, and the proposed appeal to Great Britain may be tho first step in a reopening of the whole question of war debts. That means that the financial relations between The United States and Great Britain must come up for review. There is a growing body of opinion in both countries that the sooner this happens the better.-‘Payments to America have been made in gold because the United States’ tariff has prevented payment in kind, and the result has been an oversupply of gold in America and a lack of it elsewhere. In both cases diminution of trade has followed, and the whole world is faced with the problem of unemployment. If concessions on the part of Great Britain and the United States will stimulate a greater flow of trade and lessen unemployment they will be thoroughly justified, even though they may entail a reduction or postponement of German payments. Any rearrangement suggested by Great Britain must have the approval of the Dominions, but as their wellbeing greatly depends upon that of the Homeland they are not likely to demur at any steps taken there for such a purpose. It is, of course, for Germany to prove, first of all, that the burden she is carrying is too grievous for the nation to carry.