GERMANY’S FINANCE.

Waikato Times, Volume 107, Issue 18048, 17 June 1930, Page 7

GERMANY’S FINANCE.

CAUSTIC CRITICISM.

PROFLIGATE EXPENDITURE,

A STATE. OF CHAOS,

United Press Assn.—Elec. Tel. Copyright,

BERLIN, June 15

Drastic criticism of German finance is the keynote of t'he final report of Mr S. Parker Gilbert, Agent-General for Reparation Payments.

Mr Gilbert denounces the profligate expenditure of public bodies, from the Government of the Reich to rural communes, as the most serious danger threatening the country. Otherwise ail promises well, he says. Rationalisation has largely increased production,- the standard of life has risen and a permanent credit balance has been established in foreign trade.

“ But the future cannot be faced,’-’ says Mr Gilbert, “ unless the public finances are extricated from the chaot into which they have been plunged by years of spendthrift methods. So far there has been no effective recognition of the principle that the Government must live within its income.

“ Current expenditure on the army and the navy has risen to 700,000,000 marks, not including pensions, compared with 459,000,000 marks in 1924.”

Mr Gilbert’s report coincides with the issue by the German Government of a. scheme of economies. This it accompanied by a threat that clause 48 of the Constitution will be resorted to unless the Reichstag passes the economies clause to allow the President to act in a national emergency.