GOES FROM BAD TO WORSE

Taranaki Daily News, 12 September 1934, Page 7

GOES FROM BAD TO WORSE

THE SITUATION IN GERMANY

ACCOUNT IN ENGLAND CLOSED

CONTROL OF HOME MARKETS

TRADE MISSIONS’ ACTIVITY

By Telegraph—Press Assn.—Copyright. Rec. 7.5 p.m. London, Sept. 11. From all accounts Germany’s economic situation is going from bad to worse. The latest development is the closing of the special Bank of England account of the German Reichsbank. It was hoped that marks in the Bank of England would be purchased by buyers of goods from Germany and used in settlement for purchases, says the city editor of the Daily Telegraph. These hopes have not materialised, and sender-, marks are now selling at a small discount. The German Government has asked German exporters to accept payment in new marks, but Germans have no confidence in their own currency so it is not surprising that the British are equally reluctant. Gfermany is buying large quantities of sweepings from cotton spinning mills, says the Telegraph. Hitherto the only use of sweepings has been the. manufacture of gun-cotton, but during the present acute shortage of raw material in Germany it is suggested that the use for sweepings is for the manufacture of coarse textiles. Herr Schacht now controls 25 bureaux covering all basic products, including food, clothing, coal, wood, chemicals and fodder and also luxury articles, says a Berlin cable. Commodities which can be entirely eliminated will disappear from the market. Thus it will soon be impossible to purchase chewing gum. Simultaneously substitutes for imported products will be marketed such as German tobacco. Negotiations by the German Trade Mission to Argentina are nearing conclusion. It is understood a number of agreements are in sight for the exchange of German coal, chemicals, dyes and electrical goods for Argentine wool and grain. This is the first of several German missions which are being planned to various countries to increase German exports and provide her with raw materials.