London, Aug. 1.
The return from Paris of Dr. Htjalmar Schacht, president of the Relehsbank and Minister of Economic fairs, is turning thoughts in Germany towards international discussions limitation of armaments, declares the Berlin correspondent of 'Those with ears close to the groun and Herr Hiller has a. remarkably: keen ear—are apparently convinced, hho says, that the two years' service Gecision' and the consequent tax in= creases are producing under the sur fave a mood more hostile to the pres fent regime than the German. people have displayed for some time, 'There 1, the correspondent' continues, @ smell of war in the atmos phere, and the suspicion is dawning that Germany' is partly to. blame, For this reason, itis calculated thai success in the direction of armament limitation and general relaxation of the tension in Europe would help to restore th shaken confidence at home, The correspondent oes on to draw attention to an article in the "Frank-futter Zeitung" declaring that productive government. expenditure would be more benellelat than arma ments in stimulating industry and reducing unemployment and taxa ion, The article concludes that the metic should be "Houses instead of shells."—Reuter,
Text read from the printed page and cleaned; old type leaves the occasional error.