In these critical days, when much is heard of national military strengths, it is not always remembered that, in any assessment even of military possibilities, economic and financial factors are of first-class importance. In the last five years, the German Government's attempts to strengthen the nation's economic potential and invulnerability have been even more spectacular than its military preparations proper. The whole economy of the nation has been regimented for that purpose, An immense national effort has involved reductions in the standard of life of all classes, states the "Financial Times,"
How far has this economic preparation been successful? In one very important sphere there is no doubt of Germany's lack of strength. Her external financial position is weak. The Reichsbank reserve of gold and foreign exchange is officially stated to be only Rm,77 millions, This is certainly an under-statement. There are undisclosed reserves, and in any case the absorption of the Austrian gold reserve must have substantially increased the resources of the Greater Reich, But in the first seven months of the year, the adverse balance of the "Old" Reich was Rm.92 millions, and the inclusion of Austria appears to be increasing that balance by about Rm,22 millions a month. At this rate, it is plain that the Government is having increasing difficulty in retaining even its existing supplies of gold and foreign exchange, There can be no margin, even on the most favourable estimate of the undisclosed reserves, for substantial additional purchases of war material, If Germany were involved in war, and were unable to get foreign credits, she would at the outset encounter considerable difficulties in financing her supplies of essential imports,
Text read from the printed page and cleaned; old type leaves the occasional error.