19 NOVEMBER 1921, Page 2

The German Government have been .negotiating with' the leaders of

industry for credits on a large scale with which to meet the payments to the Allies. The capitalists, headed by Herr Stinnes, demanded that the State should sell all its under- takings, beginning with the railways, to private entererise' As the railways are losing money at the rate of £19,000,00 a year, Germany would doubtless gain by such a transaction, apart from the benefits to be expected from private management But the railway employees and other trade unionists natural object to leaving the easy Government service. -According to the Times Berlin correspondent the Budget will show a net deficit of E22,000,000, apart from reparation payment. In view of Germany's wealth, this is not a large deficit. Moreover, Germany has made no effort to promote economy.