FINANCIAL CRISIS IN GERMANY

Timaru Herald, Volume CXXXVIII, Issue 19904, 14 September 1934, Page 9

FINANCIAL CRISIS IN GERMANY

DIFFICULTY OF TRADE POSITION HAMPERED BY LACK OF CREDITS British Official Wireless (Received September 13, 5.5 p.m.) RUGBY, September 12. The Imperial Treasury announces that the Reichbank, in accordance with article 2 of the Anglo-German exchange agreement, has temporarily suspended payments into the special account opened by them in the name of the Bank of England. It will be recalled that the agreement set up machinery to overcome the difficulties experienced by German firms in obtaining sterling to pay their debts for imports from Britain. Article 2 of the agreement provides that payment of marks into the special account may be suspended when the amount of Reichmarks on that account exceeds 5,000,000, and it is in accordance with this provision that payments into the account are now being temporarily suspended. It is stated that the Bank of England will continue to sell marks and as soon as the balance of the special account at the Reichsbank is reduced below 5,000,000 reichmarks, further payments into the account will be accepted by the German authorities.

HITLER’S BOAST GERMANY’S PLACE IN EUROPE United Press Association—By Electric Telegraph—Copyright BERLIN, September 12. Herr Hitler received the entire Diplomatic Corps. He said it was his unshakeable will to make Germany the stronghold of peace, and would maintain sincere relations with foreign Powers and promote reciprocal understanding. The spirit of equality and respect for other nations’ achievements should govern world relations. Germany would contribute her share to the welfare of humanity.)