The Daily News SATURDAY, SEPTEMBER 8, 1934. GERMANY’S ECONOMICS.

Taranaki Daily News, 8 September 1934, Page 6

The Daily News

SATURDAY, SEPTEMBER 8, 1934. GERMANY’S ECONOMICS.

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While Herr Hitler tells the Nazi Congress that the Nazi movement has completely conquered Germany, and that the 4,000,000 votes cast against his leadership as President of the Fatherland can be regarded with a smile,. his reference to economic conditions was remarkably unilluminating. Herr Hitler claimed in his first proclamation as President-Chan-cellor of Germany that the number of the unemployed had been reduced by 4,500,000. This statement had already been given publicity by the Minister of Propaganda, and has been received accordingly by those who have more than an academic interest in the economic conditions brought about by Nazi rule. Herr Hitler’s claim is flatly contradicted by many German authorities such as chambers of commerce and other trade organisations that stand quite outside politics. These maintain that, apart from expenditure upon armaments, the industries of the Fatherland are absorbing less rather than more wageearners. They go further. The commercial authorities assert that the reduction in the official returns of unemployed has been brought about not by finding work, but by a variety of other means, of which the latest is the giving of notice to 1,500,000 people, now in employment to make room for married workers. Other methods of improving the official statistics have been the removal of women from industry and reducing the unemployed registrations by the non-inclusion of all who are drawing relief pay and at the same time doing odd jobs. The commercial community in Germany is seriously perturbed, for despite the boasting of the Nazi leaders it appears evident that the actual total of those in need of work or State assistance is as great as or greater than when Herr Hitler became Chancellor nearly two years ago. It is pointed out further that any real reduction in the number of unemployed has been brought about by the lowering of wages and the standard of living, for the total amount paid in wages has shown a decline every quarter since Herr Hitler attained power. The decreased spending power is reflected in the .reduced purchases of foodstuffs, clothing and household goods, while all retail trades have shown a decline. Meanwhile the Minister of Economy, Dr. Schacht, asserts that a long moratorium is essential in regard to Germany’s foreign debts unless she is to default and in her collapse cause disaster to the creditor nations. Unfortunately investigation proved that the demand for a reduction of the debts could not be substantiated by Germany’s actual needs, and Britain made it clear that she would take steps to safeguard the interests of her own people. The same experience of lack of candour characterised the investigations by creditor nations that led to the arrangements known as the Dawes and Young plans for the liquidation of Germany’s foreign debts, and until the Nazi leaders are prepared to treat their nation’s creditors with canfdour the economic condition of Germany will continue to create I difficulty at home and distrust

abroad. In the political field the Nazi victory is admitted, but until similar success is achieved in the economic sphere the opposition to the Hitler regime must be regarded as containing more dangerous possibilities than were made known to the Nazi conference.