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Show ' - r/ r rE II < i ) ; r / Economic E conOllllC omic High H- H Hh H 19 - o h Jinks Jink J- J JI ill - I (8 8 ( s in ill : n Germany G GI enllany I I ! \ By gy WILLIAM WIL.t.rAM WILt.rAM WILtrAM . . C . UTLEYJAILY UTLEY UTL.EY UTLEYBAILY . Iff ; down Unter den LInden LIndenthere Lindenthere Lindenthere BAILY DAILY JAILY there walks with witb n a brisk , em- em eili- eili emc1ent eiliclent cfil-ciont cfil ciont - \ . c1ent clent stride a ' voiy 'relY relY very unhappy unhappyy Y ' " ' ind 'lntl lntl and verv very ver successful man He He"Dr He-Dr He Dr 1'1 11 - "Dr Dr " pr . njalmar IIjalmar Ilialmar Schicht Sch'Ieht SchIeht Schacht ' . . He lIe Is un un-feppy un feppy - . Ppy because he has to do somethingjiat somethtng something somethtngJ somethingjst J at jst tie be docs does not like 1I1.c 1I1c . at all , somethIng somethIngfat somethingItt somethingat fat Itt { Is distinctly contrary contrnry to his 0\\ 0 0n own 0tter owntter own"itter ownitter \ n " tter judgment He Is still st111 more un un-ippy un ippy - . ppy because the fortunes of tlie the peaot peeof peo- peo pea- pea pee- pee peoof - - of ot the fntheiland fnthelland fatheiland he lie loves los lo\ lo \ " ( s so welldIrectly welldirectly well directly concerned \ with ith \ what hat he lie Is Istng Islag isJinff tng lag , and he Is sure it Is not thething thething the thet t thing for them thl'm thlm ' , : r---- r r7 - - - ' " 7\\\ 7 7iif x \ \ \ " " \ \ iif . r y f 1 / r + * oA oAfi fi fiK K \ ' s s"P4 "P4 P4 " ' ' ' > a4a , t 1 1Rt Rt z , r rod od 4 4M M d 4d ) h : ' , . ; s sbBe bBe He Is successful because he is doing doing4ts doln , ; 4ts its thing he does not believe in es cs- cs csdordinanly . - dordinanly ordtnarily well , better pcihaps perhaps than thanother thanay other living mm man could do It Besides esldes being a man who weirs wears a aby arby by hat bat , nose glasses , , a mustache mustached d a worried look , Doctoi Schacht is issilent isesldent silent of the Ilelchsbank Relchsbank He is a anservatlve anservatlve nservatlve mm man ind and believes In the themeproved theme-proved theme proved me-proved me proved - - theories of Inssez laissez faire in inSsiness siness Confronted with the institu instituin institun n of Nazi principles of economics economicsich economicilch " ? ich are so abhorrent to him beciuse because becauseare beciusey > y are so unprincipled Doctor Schacht Schachtat Schichtint at to Chancellor Hitler and tried tolgn to toln > lgn ln ? ln5o lgno 5o o Important were these nos novel el depar depares deparas [ es in economics to the security of ofNazi ; Nazi pirtv party and state sociilism socialism Der Deruhrer Dcrtirer uhrer told Doctor Schicht Schacht tint that if he heIgned hesigned Igned he would be sent to one of the theade the'adefl theadefl ' ade concentration camps It was wasortant wisiprtant ortant tliat that the New Deil Deal for Ge- Ge GeI Gebusiness Ge.n Gen " - . I business have hive an able leader to topage tonage page it It . Doctor Schacht kept the theyally oyally rally yally and efficiently efficIenUv he be his h'lS hlS has ' ad adnlstered adnistered ndilstercd nlstered nistered the financial financwl legerdmainch legerdmalncb legerdmnlnch legerdmaln legerdmnln cb ch his h'IS has ' mide m'lde mlde made ' Germin Germ'ln Germln German ' reco\ reco recovery recoery recosery \ ery pos pos-e pos e - . e It Is one of the mel wieidest dest tale tales , > In Inthe inthe inthe { \the the \ the history of business Yet Ger Ger-n Ger n - . n recovery recosery reco . erv Is a fact , although it Isl1t isit Is Ist l1t it t on methods so unorthodox unorthodo't unorthodot unorthodoe ' that thate e slip shp ml might ht easily crumble it . t F Hitler Faced Panic Panichen PanicThen Panic7hcn Then hen Hitler came Into control inthere In Inthere In3 there \ were \ ere 6000000 G 000 000 Germans un unloyed unToyed uniloyed loyed Toyed The country wis W'lS WlS was ' sutrerlOf suirering suireringustrial sufferingustrial ; ustrlal ustrial ricl rickets ets The people wereling wereling were wereng ling ng to give state socialism socwIism a try trv to"baclt to'baclc to " ' back "baclt baclt 'baclc baclc on their feet This was Iiit- Iiit IiitS Hit Hit-s Hit s - . s ' chance c'hance His entire future andt and t ; of ot N Nazllsrn Naziism zl1sm depended , not upon Ger Ger-n Ger n - . n mlht military milrtiry ry presti prestige e , but upon reo re- re reoery reery re-ery re ery - ery . , . Unless Germans got their jobs fobs fobsck jobsck jobsk ck ; , Hitler would not keep lceep his veryg very very'oday g . 'oday oday ' there are Rre less than 2000 2000000 2000000mployed 2000000smploved 000 000mplo mployed mplo ed Gcrmins Germ'lns Germlns Germans ' It mikes m'lkes mlkes makes ' no noerence noerence nocrence erence if it you take talee the word "ord ord " of the therman thean theman rman an government for it it . . ' The 1'he 1he ' re- re real re- re real re real - - al of German Industry 1ndustrj and trade Islous Is Islous islous lous . . ) In n last January 30 . , the second nn an- an anersary an-ersary an ersary - . ersary of his coming Into power , . tIer er told Germany : 'The The ' nattonallaUst nationallalist national nattonal nationalallst allst laUst lalist regime has bas lifted up a nation nationt t had bad wasted a away ay in dull desperan despera n and has his h s filled fined it ' " with withh lth strong filth hUh faith faithd filthconfidence 1 d ! confidence In the Innate 1nnnte values and andntlve andative andatlve ntlve ative powers of its own life . . .ton ton . on Januiry Jnnu'lry Jnnulry January ' 30 , . , 1013 1933 lOU , f 1 t demanded demandedir demandedr r yeirs ye'lrs yelrs years ' ' time for the execution executton offirst offirst of offirst first libor hbor Labor progrim progf'1m progf1m program ' , then two two-rds two rds - . rds of this progiam program pro u\m u m \ lias has already alreadyin alreadyn alreadya n a fulfilled fulfi11ed during the first half of ofI ofS ofB I S Period I 1 " odiy od'lY odlY oday ' the truth of ot his words is more moreever moreever moren ever apparent to the Germin Germ'ln Germln German ' peoPublic peo- peo peoPublic - . Public works worles and re-armament re armament rearmament re-armamentc re armamentc rearmamente - - e given ghen glen Impetus to Industrlil Industrhl Industrial ae- ae ac- ac aety acty ac-ty ac ty - - - ty . There is an ever Incre'lsln Increlsln increasing increasingsumer Increising.sumer Increisingsumer ' . Bumer sumer demand for tor the products of ofustry ofnstry ofrstry ustry nstry . . Banks have been able to tonldate to"date todate toaldate nldate aldate " the m major msjor jor pirt p'lrt plrt part ' of the frozen frozendUs frozendits frozenflits pinic1931 dUs dits which resulted resuited from the p'Inlc pInlc panic ' 931 1931 . ? hat that has brought all this about abouti ? ? 1 1Hard / . ? Hard on Foreign Creditors . ome me of it Is due the factor which whichmulated whichmutated which"ulated whichulated mulated mutated " recovery in many of the theons theions theions ions suspen'31ontho suspensionthe ons of ot the wOlld-the wOlld the world--the world wnild - - - the suspen'31on suspen31on suspension suspension"to suspensionto ' Unitedtes tho the " Cold gold standard stanltard by the tbe United Unitedtee , tes tee . . But by far the lion's lions 1ion's 1ions ' share shareit sharet t has bas resulted from Hitler's Hitlers ' utterlysclencelcss utterlyaclenceiess utterly utterlyclencelcsg financialIdea fnancialIdes clencelcsg sclencelcss aclenceiess economic and lln-nclal lln nclal fnancial llnnclaldeB , - financialIdeaPeking deBeeking Ideseeking Ides deB Peking eeking Germany'al Germanyal Germanyan Internal recovery , Germany ' an ! by Imply .imply simply ( . canceling her ber Foreignw ForeignR : foreign orelgn w R r J ! I Idebts those Ulose aboutthose aboutUlose debts She didn dldn t t Ime ha\e ha e base \ toorry to \ worry \\orry orry about creditorsworry any nny more more-let more let - - her creditors worry ' > To restore employment , she began t huge beganhuge [ public Hlbllc works schemes and a re : . nrmament armament rearmament renrmament progrim progMm program which startled starrled tho the thoorld theworld world \ orld Manufacturers Manufucturers c were gi\"en gi "en en given givenc \ " givenUrge gi"enhrge givenlarge hrge large orders for tor goods for both pur poses purposes and more \ workers orkers went back buck to toy work J4work towork . , toJ4 ; y ti tiShe J4 goldreserves goldTeser"es She did these things \ when hen her gold . Teser\"es Teser "es es reserves Teser"es1 themirk exhnustedtllern'lrlc \ " \1 1 \ , were ere nearly exhnusted-tlle exhnusted tlle exhausted-the exhausted the exhausted - " rn'lrlc rnlrlc made rn'lrlceven ' even Is centCO now only 21 21per 2 per cent publie pubHe CO\ CO cohered COcreel cosered \ creel by gold We . , too , . , pushed pub He lie works programs-with programs with programs - with money we . , t _ _ _ _ - . "R R " " ' " 77- 77 ' ? - " " ' \ , 1 ' < " / ' : V " . " " ' " " ' . / \ \ ; \ ' > . " "t t " " . - " ' " ( - - < , . \ \ \ " ' , " < : ' " _ _ . N < " \ t . a \1 1 \ 1t 1f s f . ' a an n . 1W ; . , ' ; , . . . , \ . " < . c ba bat " - " . t " , . . \ \ . t & 1 - > . \ \ \ \ ; . : . ' ? t r\ r rt rj : ' } \ . ? . \ ? t p ' _ ! \j j \ - j'u \ . " z < : ,3mv -'u 'u u - : ' . ; " " ' ' < . - ,3m 3m , \ " , ' > . iN'IfJ iNIfJ iN'IfJo ! ) Ye Yeo , . . " ' " _ \ -v v : - " } . _ P.1 P1 $ . . " ) . " , ' ' J ' " ' . C ( ' . " [ o . w \ . - . , - . \ ) : ' 4 4LLY -o o - ! - . " . . ' " \ \ " - w . wV . . /V--- V ' / VJ : ; - - ; ; , . \ ; . - ' > - ' \ - . , . --J J - : . ; : . . ' . " ' ' 'Y Y ' " \ 'Ys Ys : . _ ' " . . - . " . \ ! ' LLY LLYd - . .17- .17 .17f'O'J - > . ! d ' " w . ; : - , f'O'J fOJ " ' : ' + A- A & - A0 " ' " , > 0 . u uw " ) . " h y " , . ou . . _ f : ; ! r : . / L oro ro ' " rox , o rof f . . . . , SOAC/nw.wxw SOACnw.wxw SOAC nw.wxw nwwxw y / . . x " .gafaE.k- gafaE.k .gafaE.k gafaEk . .gafaE.kGermany . . - + # W Germany has literally spent billions which did not exist to rearm , and andthis andthis andthis this activity Is one of the factors which have started her on the way torecovery torecovery to | recovery . Center : Part of the fleet which Is being augmented by moreand moreand more ] and more vessels Right : Hitler reviewing troops Left : Dr . HJ Hlaimar HlaimarSchacht 1lmar 1lmarSchacht Schacht , president of the reichsbank relchsbank J ? possessed posessed " , Germiny Germ'Iny Germany ' spent billIOnsthat billionsthat billions billionsthat that did not exist 1 ' 1That 5 1 That alone \ would ould hive h'lve hlve have ' st'lmpedf stampedi stimped st'lmped stlmped stamped ' f i Nizi N'lzi Nlzi Nazi ' economics economlcs as unstable if noti notdisastrous notdisastrous not i | disastrous She " went ent beyond th'lt thlt tint that ' . , , and , in 1944 1 193 ! ) ' ? , , the tbe government goV'ernment ' ordereJ ordered orderedndustrlal orderedIndustrlil t . : I ! Industrhl ndustrlal employees employ cmplo cis eis to put men b'lcl blcl back backI backto bickto ' I j I jto to ' \ work orl . whether they needed themi themor them I i | or not They were ordered to usei useless use . i less efficient michlnery m\chinery m chinery machinery ' \ If thit th'lt thlt that ' werenecessary \ were werenecessiry ere erenecess'1rY I necessiry necess'1rY necess1rY necessary ' . Cilos Clles Cites of protest were Invain Invain In Invain I vain Ruin TIuin seemed to men like 1i1.e 1i1e . Doc Doctor i tor Schacht Schaclit Ine\ Ine Ines Inevitable IneHable \ Hable stable But no , thespending the I spending spendmg of additional addl Ionil lon'11 lon11 ' money forw for , v w . wages ages created new purchising purch'lslng purchlslng purchasing ' powerrIad powerlied power powerHad Had rIad lied only an occaslonil occasion'll occasionll occasional ' fictory f'lctory flctory factory ' bee bees beesforced beenforced , forced to return men toori to \ work \\ori ori . , Itould it \\ould ould would wouldhave \ wouldhive ouldh'we h'we hwe have ' got back bach mighty little of the new newpurchasing newpurchasing newpurchasing purchasing po power " er cicated cleated But when whenthey " whenthey hen henthey they ill 'In In all ' had to do It , an n actual sUmu stimu sUmuhUon stimulation stimulltlon hUon lation of business busmess resulted < ; so 0 th'lt thlt that th'ltby thatby thitby ' by 1931 1V31 . , such UCl1 high handed action no nolonger nolonger nolonger longer had to be resorted to toPriming toPriming PrIming the Pump . The billions blll10ns of marks which had hadbeen hadbeen hadbeen been poured info inro into the public works 1n and andrearmament indrearmament ( } rearmament programs progrnms \ went ent through throughthe throughthe . the circle of trade Industry Industrv wis W'iS was ' ableto able ableI ableto ableto to mike m'll.e mll.e mlle ' . good Its frozen fr07en credit " with lth thp the thpu'lnl.ing thebanking thebinking I u'lnl.ing ulnl.ing ulnling banking ' . s\ s s\stem s stem sstem ssstem \ stem Binks n\nls n nls Banks ' \ , were enabled enabledI enabledto enabledto I to recover their frozen fro7en bills bt111 ; from the theTIelchsbanl theRelchsbanh theReichsbank TIelchsbanl Relchsbanh . The financing of pubIlc public pubIlcI pubIlcworl.s publicworks publicworks I worl.s worls works worl.sas . \ was \\as as put on a reisombly re'lson'lbly relsonlbly reasonably ' ' sound soundh'l soundbasis soundhi h'l hl basis ' < ; < iis i < ; beciuse bec'luse becluse because ' treisury trc'lsury trclsury treasury ' bills hills hid h'ld hld had ' slowly slowlybut , but surely , , replaced the frozen com corn cornmercial commerclal cornmerclal merclal mercial bills No Nd N Inflationary Int1aUon3ry measures measureswere measureswere were \ ere necessary nececsarv : to protect the reichs reichsoverwhelming relch s soverwhelming soverwhelming overwhelming deficit There was no noreturn noreturn noreturn return to the dark dnrk days of a dozen dozensears dozeniears sears ears ngoThe agoThe ago ngo agoTlie Tlie The budgetary high jinl jinks links s of the Nazi NazigO Nazigosernment Nazigovernment gOernrnent gosernment gO\ gO \ ernrnent causes no trembling trembHng of the theconfidence theconfidence theconfidence confidence of the people , with "lth lth " its sub subsequent subsequent subsequent sequent general business de1'lpldatlOn de1lpldatlOn delapldatron de1'lpldatlOnsImply delapldatronsimply delipldationsimply ' sImply because the tbe Germin Germ'ln Germln German ' people do donot donot donot not know Imow much about it If It the deficitis deficit deficitIs deficitla Is tremendous the Germin Germ'ln Germln German ' people ne\ ne neer neser neserread neverread \ er erread read about It in the papers or hear It Itdiscussed itdiscussed Itdiscussed discussed 0\ 0 over 0er oser \ er the radio The com com- complete complete . - plete authority of the state forbids itWhat it itWhat What happens when wIlen the treasury treasuryneeds treasuryneeds treasuryneeds needs additional funds ? A concrete eample ex- ex example ex e\ e example ' \ . - ample Is available a\"nllnble a "nllnble nllnble \ " , Jn In f n the record of ofJanuary ofTanuary ufJanuary January Tanuary * of this vcar vear year The gosernmentmerely gO\ gO gOernment gosernment governmentmerely \ ernment ernmentmerely merely helped Itself to the resource'3 resource3 resources resource'3of resourcesof resourcesof ' of the savings banks and the insurance insur insurancp Insurancp ancp ance companies Both were required requiredto to tike t'lke tlke take ' over loans of :500 500 : 500000000 000 000 relchs reichs relchsmaris reichsmarks relchsmarks maris marks , Although the resources of these theseIn theseinstitutions tlieseInstitutions institutions In tltut1on'3 tltut1on3 tltut1on'3ere ' \ were \\ere ere hardly unlimited , themoney the themoney themoney money was W3S spent Immediately and andsoon andsoon andsoon soon ran the ordlmry |