A JOINT EFFORT.

Star (Christchurch), Volume LXVI, Issue 20455, 7 November 1934, Page 11

A JOINT EFFORT.

Saving Germany’s Economic

Situation. HITLER AND SCHACHT. Two men are to-day bearing on their shoulders the tremendous responsibility of remedying Germany’s disastrous economic situation, which threatens the country with a winter of hardship and even famine, states the Berlin correspondent of the London “ Daily Telegraph.” They are: Ilerr Ilitler, head of the Government and head of the State; and Dr Schacht, president of the Reichsbank, and for six months at least German Economic Minister. The strain in both cases may prove more than one can bear. The huge fall in Germany’s exports is shown in a report published recently by the Institute of Business Research. “ Between the autumn of 1929 and June, 1934, exports decreased in value by 75 per cent, and in volume by 60 per cent. In 1931 the fall in imports was greater than that in exports, so that the ‘ favourable ’ surplus increased.” In 1932 the decline was about equal. \\ ith the advent to power of the N azis imports rose “ owing to the growing need for raw materials as a result of business improvement,” while exports continued to sink. At the beginning of this year the process had gone so far : that Germany was laced with an import surplus. j 1 hus ’t is no easy legacy to which i Dr Schacht has succeeded, and his task is not made lighter by the fact that Ilerr Ilitler as even his adjnirers admit -dislikes hearing the truth when it is unpleasant. I learn that the reason for the dismissal of Or Kessler, the leader of the German Economic Association, was that he'gave Ilerr Hitler a true report of Germany's serious economic plight. At the time it was alleged that he had been dismissed for incompetence. Dr Schacht, being an adroit politician, is unlikely to make Dr Kessler’s mistake. Having a very strong constitution, he may avoid a nervous breakdown. But it will be a miracle if he steers Germany through the difficulties which lace her—despite the fact that h - enjoys dictatorial powers, and can act without prior reference to the Cabinet. One of his first measures has been to give notice that the permits of ioreign newspaper correspondents and members of embassy and legation staffs to receive registered marks for the payment of their living expenses, will oe withdrawn on October 1. This, I understand, does not apply' to other residents as yet. By his order, Dr Schacht hopes to increase the quantity of foreign currency entering Germany, as German money will be made considerably dearer. It is unofficially calculated that on the salaries of foreign journalists and diplomatic officials Germany will save herself some one and a half million marks (a little over *110,000) a month. „ Ihe mystery of what is called the Petras” legacy is still the talk of financial circles in Berlin. According to reports published abroad, and in responsible German newspapers, two Germans were to inherit enormous sums from a relative in America named Daniel Petras. I Germans would have to surrender the dollars to the Reichsbank, receiving in exchange the equivalent in marks, and the sums were said to be so big that it was reported that the Reichsbank would more .than double its reserve of foreign currency. On the basis of these reports, I was informed by an official of the Reichsbank, the American cotton trade offered to make a special agreement with Germany. But the Reichsbank declares that it knows no more of the legacy than what appeared in the newspapers.

UNITED INSURANCE.

Dividend Rate Again Increased. • Insurance has again increased its dividend. Final distribution is at the rate of S per cent per annum, making 7* per cent for the year, against C per cent for the previous year. Net surplus, after taking into account invest received, was £49,068. as against £26,922 the previous yaer. Receipts were substantially lower, but how much of this was due to the fall in interest rates cannot be stated, as the net premiums, interest and icnts are in one item. Administrative expenses and taxation are substantially greater, and how this occurred also cannot be stated, as here, again, it is all lumped together. Losses had the very substantial reduction of £48,923. Besides the dividend, which requires £33,750. a sum of £2500 is added to the reserve fund, making it £240,000, a sum of £2500 to the reinsurance reserve fund, making £165.000, and reserve for equalisation of dividends is re-established by nr appropriation of £IO,OOO. The balance of £3lB added to £6702 brought forward gives £7020 to be carried forward.

and Government stocks by £4925. Other debentures have increased by £SOOO, and mortgages by £1319. Cash is £1421 higher than a year previously, and debtors owe £3803 more. EGG SALE. Messrs Harris Bos., I,td.. report that the usual weekly sale of Feather brand guaranteed new laid eggs was held yesterday afternoon. The prices realised were: Hen eggs, first grade (2oz or over), lOd; second grade (under 2oz), 9d. 6 RUBBER STOCKS. United Press Assn.—By Electric Telegraph—Copyright. BONBON, November 5. Rubber stocks at the end of Octo-

Year endec! Sept. 30. 1932. 1933. 1934. X e t premiums, £ £ £ Expenses and 357,S35 344,654 325,693 taxation 1 13,450 1 19,390 Losses • 256.407 198,340 144,417 Net deficit .... 1 2,022 From Cont. Ac. . 18,105 Balance From equalisation 6.0S3 26,922 19,068 of Div. Ac. . . 22,500 Div.i per cent .. 5 Div.. amount 22,500 27,000 Reserve Fund . . Equalisation of — — 2.500 Div Reinsurance re- — — 10,000 Forward 6.7 SO 6,702 7,020 Deposits have increased by £10,470.

Oct. Sept. Aug. , Tons. Tons. Tons. London ; 64.282 56,030 4S.255 Liverpool ...,, 5S.3S0 57.477 56.383