REPARATIONS

Wairarapa Daily Times, 15 June 1931, Page 5

REPARATIONS

GERMAN PROPAGANDA TO OBTAIN A REVISION. ' -s ■<.; Press Association Electric Telegraph—Copyright (Received Monday, . 9 a.m.) BERLIN, Sunday. Ambassadors at Paris, Rome and' "Washington have been invited to Berlin immediately to report upon the feeling towards the revision of reparations. The Ambassador at London is not included as the the Chequers visit has revealed the British attitude. The Reichsbank has raised the discount rate from live to seven per cent., owing to the demand for foreign currency, due to scaremongering, amounting yesterday to £10,000,000. The interest rate has been advanced from six to eight, per cent. Meanwhile the flight of capital is- increasing. It is estimated that since June I, £25,000,000 have been withdrawn from Germany. Herr Luther, the Reichsbank President, has appealed to other banks to check the flight of capital. He points out that £525,000,000 worth of foreign investments have already left the country.

POLITICAL CRISIS. BERLIN, Saturday. A political crisis is threatening as a result of the People’s Party after a long and stormy meeting demanding an early convocation of the Reichstag to revise or even annul the emergency decree. The Nationalists are equally insistent on a revision, and will support the People’s Party. A meeting of the Reichstag House Committee is fixed for June 16. If the proposal is carried the Government is certain to resign. It is believed that the Socialists hold the key to the situation, and they, too, are demanding a convocation if Dr. Bruening, the Chancellor, refuses to alter the provisions of the decree which is regarded as being oppressive to the workers.

The People’s Party apparently is aiming at a reorganisation of the Cabinet, putting a man more favourable to the industrialists in the place of Dr. Curtius, whose contention is that a convocation would lead to increased economic tension,

Dr, Bruening lias hurried to consult President Hindenburg, who is spending a holiday in Newtek, A

(A week ago President Hindenburg signed new financial decrees which are expected to yield £90,000,000 and turn a deficit of £62,000,000 into a surplus of £28,000,000-. Practically every’ 9 er ' mail, i's affected by the decrees. The pensions of 660,000; war invalids have been reduced 10 per cent., and an even greater number of widows and orphans have been similarly*reduced. An addition of 200,000 will be niadc to the present 500,000 workless who receive no benefit of any description from the Government. All taxpayers will bo subject to a new income tax).