Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-05
GERMAN FINANCIAL
SITUATION SOUND
Commissioners of Reichs
bank, industries and Rev.
enueS Make Observation.
BY the Associated Press.

raiser to S. Parker Gilbert's annual re.
port due several days hence the agent.
generals Office today made public foul
reports, namely those of the commits.
sioners of the Reichsbank, industrial
debentures, controlled revenues and
railways provided under the Dawes plan
The Reichsbank commissions report
says: "Once again it can be recorded
that the Reichsbank situation in every
respect is sound"
Pointing out that the dominant ten
dency in Germany's business situation
during the past year was the extreme
ly strained position on the capital mar
ket," the commissioner observes it was
possible to meet new capital require
ments only by still further increasing
the short-term Indebtedness already
high.
At the beginning of this period "the
trade balance, it is true, has gradually
improved, but there is no question yet
of equilibrium in the balance of pay
rnents."
In the commissioners opinion the
German money market can be eaSed
only If relieved of the pressure of pub
lie debts
Escaped Stock Crash.
Referring to the New York stock up
heaval the report says:
Germany had no noteworthy specu-
lation in stock exchange securities dur
ing the last few months, and accord
ingly escaped the stock exchange crisis,
but, on the other hand, she had no
liquid funds set free, as in other coun-
tries. as a result of liquidation of the
crisis" Despite the pressure on the
countrys economic life, lit is gratifying
TO note that the producing capacity of
Germany was generally unaffected"
The report adds, however, that it was
apparent from the increase in the num-
Der of bankruptcies and compulsory set
Elements in general business that credit
difficulties had wrought serious conSe-
QuenceS.
AS regards industries covered by the
report OF the commissioner for indus
trial debentures, a better situation was
disclosed. In the IL months under con-
Sfderation there were 205 bankruptcies
and 34S voluntary wind-upS involving,
7.307,50 and $4,000 ,635
gold marks, which was well below the
previous year, when these amounts ex-
ceeded 10000 900 marks and 80 900 900
The commissioner states that indus
trial reorganization generally is in q
fair way of overcoming the difficulties
imposed by the new economic condi-
tons. There have been q widespread
increase in production and reductions
in costs and working expenses. This
process is not yet completed and re-
mains one of the country's most impor-
tant problems. Germany, however,
steadily is continuing to develop her in
dustrial relations nth other producing
countries, notAbly the United States,
Great Britain and France.
Industries Hold Position.
Regarding the six key industries-
coal, Ignite, potash, cast iron, cast
steel and rolled metals-the commits
sioner's report is generally favorable
with production curves rising and Ger
many holding her position on world
markets
OF coal she still yields 25.s per cent
OF European production and of Ignite,
IT'S per cent Of the whole world pro-
ducti0n. Potash and the metals also
show figures exceeding the averages OF
recent years. In steel the maximum
daily production Of 57,266 tons was
last June, q mark which had
not been exceeded since 1913.
In copper Germany still heads Euro
pean consuming nations. While raw
cotton and leather imports have fallen,
wool has risen and the rubber con-
sumption increased 10 per cent, as COM
pared with the previous year, owing TO
Germany now has 1,165, 499 cars on
her roads and ranks third in the rub
countries.
According to the commissioner of
controlled revenues, namely customs,
beer, alcohol and sugar, the
yield during the fifth annuity year
to 2,870,244,00 marks, as
with 2,852 ,491 900 IN 1928.
In general the increase of revenue
has been due to consolidation of the
economic situation, steadily increasing
consumption and increased rates of tax
alton" says the report.
Customs on Firm Base.
Discussing the customs report. the
observed: The future
yield of customs rests on a firm base
and can hardly fall below that regis
tered in last years, except in case of
an extraordinary development of home
agricultural production, especially in
or of a pronounced weakening
of the general economic situation"
The increase in the consumption of
tobacco during the five annuity years,
according to the report, has been gen.
eral and remarkable. From 1924 TO
1928 the consumption of cigars in.
creased by SO per cent, cigarettes by
A per cent and cut tobacco IA per
cent. The per capita consumption now
is los cigars, 500 cigarettes and 600
grams of cut tobacco.
The consumption of beer also ad-
vanced steadily, namely from 81, 75S, 600
hectoliters in 1924-25, to 81, 621 900 in
ls2S-29. The receipts of the fifth year
to ITO per cent of those of
the first, due partly to increased con-
sumption and partly 10 SO per cent
increased tax
= AS to the alcohol monopoly, the Weld
from this doubled in flve years. being
336 ,00O. 900 marks for 192s-29. During
the fifth annuity year 1855, 900 hecto-
liters of pure spirits were consumed.
Railways Up to Expectations.
The railway commissioners report
points out that despite many difficulties,
operation during the past five years
lived up to expectations. The develop
ment of traffic and the financial re-
suits we're more favorable in 1929 than
in 1928, on the whole rejecting The de-
velopment of Germany's economic ac-
tivity with rising exports and declining
imports
Increased rates failed to affect trafic
adversely. The total receipts for 1929
were estimated at $3.50. 900 600, and ex-
penditures, 4.459 900 900. The surplus
Of oil ,000. 900 marks was just Sufflcient
to meet the reparations burdens Of the
railway company, the preference divi-
dend and the costs for extensions for
1929 in addition to the 80, 900 900 marks
for bringing the reserve funds up to
500 900 900 marks as prescribed in the
Dawes plan. The year 1880 will be a
difiicult year as new sources for balane-
ing the budget must be sought. The
only course open is again increasing
rates. The report concludes:
THE results achieved by the company
1904 oh -,