FINANCIAL CRISIS

Waikato Times, Volume 120, Issue 20889, 22 August 1939, Page 9

FINANCIAL CRISIS

CONDITIONS IN GERMANY RECALL OF DR. SCHACHT RUTHLESS METHODS NECESSARY ! nited »*res.« A*sn.—Elec. Tel. CoDyrlgnt) LONDON, August 21 Reports that a grave financial crisis s developing in Germany receive much rotninence in the London financial • >urnals. The correspondent of the Financial . ws in Berlin says that there are perstent rumours that Dr. Schaelit, the splaced head of the Reichsbank, was called secretly and received by Herr iller at Berchtesgaden, preparatory * his resuming a decisive rule in the management of German economics. The rumours, the correspondent states, are a reflection of the conviction that the long-expected climax has been reached. The conviction prevails throughout Berlin business and banking circles, which believe that only Dr. Schacht’s ruthless methods are capable of saving the Reich from impending disaster. Other steps, the correspondent goes on, might postpone, hut not avert, a catastrophe. Doubts exist whether the Nazis’ regime could accept Dr. Schacht’s proposals because they would undoubtedly include a revision of the armaments programme and a modification of many features of Goering’s four-year economics plan. Reiehsbank figures prove that the decline in the country’s finances is not due to seasonal influences. Signs of Weariness According to the Berlin correspondent of the Financial Times, the Reich's financial machinery still gives an appearance of operating smoothly, hut men and machines are being worn out, and the financial structure is showing signs of weariness. .Manufacturers, he adds, complain of slackness anil a decline in discipline, among factory workers. The Treasury also has grounds to complain about the lack of financial discipline on the part of business men and bankers. Shortage of Raw Materials A German textile journal announces that a decision lo shorten the tails of men’s shirts will result in an annual saving of millions of yards of material. This is calculated partly to relieve the nation’s acute shortage of raw materials. The journal suggests that further substantial economy is possible by the introduction of detachable cuffs, pointing out that flayed cuffs are responsible for the early discarding of otherwise sound shirts.