German Crisis

Wanganui Chronicle, Volume 74, Issue 279, 25 November 1931, Page 7

German Crisis

WAGES AND LIVING COSTS REDUCTIONS RECOMMENDED By Telesraph—Press Association--Copyright./ Received Nov. 24, 7.25 p.m. BERLIN, Kofc 24. A reduction of wages and salaries simultaneously with the cost of living to prevent an intolerable shrinkage oi the purchasing power, is one of the main conclusions of the economic court formed under von HinacnPurg’s presidency, to guide the Government in drafting fresh emergency decrees. The Court has decided that public utilities should reduce enurges and that rents should be lowered. It has rejected inflation and has urged the clearing up of the reparations and private debts problems. Tho trade unions oppose the decisions.

DEBTS OF GERMANY RELIEF IMPERATIVE HOPE LIES IN TRADE LONDON, Nov. 11. Notwithstanding the fact that Germany is now the first exporting country in the world, having passed Britain last year, and tho United States in recent months, she is entering upon a winter clouded by a trade depression, says the Berlin correspondent of the Times in a lengthy review. Moreover, there are 4,622,000 unemployed, and tho numbers are increasing. In addition, there is the political agitation duo to £6,000,000 Communists and members of aggressive militant organisations, coupled with the uncertainty regarding the country’s political obligations abroad. They are all adding to Germany’s problems. Nevertheless, there seems to bo an intuitive belief that Germany is moving through tho confusion not toward d‘ ruption, but to better things. It is thought that the world must now recoginso that Germany is bankrupt. She owes, according to Go-man statisticians, £1,250,000, which, whether reparations or private debts, can be redeemed only by export surpluses. The world must allow hjr to earn. Therefore, it is thought that the circumstances have given Germany a stranglehold over participants in the coming international negotia '.ons which will result in a reduction of reparations and "an arrangement that these shall bo paid chiefly in kind, while private debts will be paid in supportable annual sums. However, life continues much as usual. The country is suffering under retrenchment and reduction, but the dictatorship is most benevolent. There are 30,000 flats empty in Berlin, where recently it was impossible to secure a room, and numerous shops and offices are vacant. GERMAN STATE SECRETS THE SUBSIDISED AIRWAY SENTENCES OF IMPRISONMENT Received Nov. 24, 9.20 p.m. BERLIN, Nov. 24. At the trial at Leipzig on a charge of high treason and betraying State secrets concerning tho Lufthansa, tho great State subsidised airway concern, Baron Karl von Osietsky and Herr Walter Krcisler were sentenced to 18 months’ imprisonment. The terms of the judgment may not bo published, as all present were sworn to secrecy. There is much speculation in connection with tho Lufthansa State secrets, since Germany is not permitted to possess naval air forces.