ECONOMIC ISOLATION

Taranaki Daily News, 13 September 1934, Page 5

ECONOMIC ISOLATION

SITUATION NOW COMPLETE

DIFFICULTIES IN GERMANY RESTRICTIONS ON IMPORTS FINANCE FOR SUBSTITUTES By Telegraph—Press Assn.—Copyright. Rec. 7 p.m. London, Sept. 12. The economic isolation of Germany is complete. A meeting of the Reichsbank directors yesterday discussed ways and means of financing new machinery for German factories for the manufacture of substitute materials. German businessmen, generally, refuse to manufacture substitutes owing to the expense involved. Every article imported valued at over 18s is required to have a certificate from one of Herr Schacht’s control officers. The certificate entitles the importer to the foreign currency needed to pay for the purchases. The Anglo-German exchange agreement is working sluggishly, says the l Daily Telegraph, owing to the German decision in favour of a permanent policy of restricting imports. British exporters are also anxious about the £2,000,000 owing for goods exported from Great Britain before the exchange agreement. Bradford believes that Germany will not only arrange to pay her old debts but will return to the raw wool markets sooner than generally imagined, says the Yorkshire Observer. It is felt that the yam exporters’ action against Germany will eventually have the desired effect because Germany must have material that is only procurable in Yorkshire. This is essential to her exports, which must be maintained in order to avoid increased unemployment and further financial trouble. The entire wool textile trade supports the yam section’s action.