| Show economic high jul wh jinks in germany IL by WILLIAM C UTLEY AILY down unter den linden D DAILY there walks with a brisk efficient stride a very unhappy he and very successful man schacht ile he Is unhappy ts is dr hjalmar because he be has to do something that ne he does docs not like at all something aln that is distinctly contrary to his own better judgment he Is still more unhappy because brause the fortunes of the people of the fatherland he loves so well are directly concerned with what he Is doing and he Is sure it Is not the best thing for them 1 I ile be Is successful because he Is doing this thing he does not believe in extraordinarily tra ordinarily well better perhaps than any other living man mad could do it besides being a man who wears a derby hat nose glasses a mustache and a worried look doctor schacht is president of the lie Is a conservative man and believes in the time proved theories of laissez dalre in business confronted with the institution of nazi principles of economics which are so abhorrent to him because they are so unprincipled doctor schacht went to chancellor hitler and tried to resign so important were these novel departures in economics to the security of the nazi party and state socialism der feuhrer told doctor schacht that if he resigned ned he would be sent to one of the dreaded concentration camps it was important that the new deal for german business have an able leader to manage it doctor schacht kept the job loyally and efficiently he has ad ministered the financial legerdemain le which has made 0 german erman recovery possible it Is one of the wi wl erdest tales in all the history of business yet german recovery Is a fact although althou h it Ls is built on methods so unorthodox that one slip might easily crumble it hitler faced panic when hitler came into control in 1933 19 33 there were germans C armans unemployed the country was su faering industrial rickets the people w were ere willing to give state socialism a try t ry to get back bach on their feet this was hit hit lers chance ills HIS entire future and nd that of nazllem asin depended not upon german military prestige but upon recovery unless germans sot got their jobs back hitler would not keep his very long today there are less than unemployed germans germ ans it makes in I 1 ke s no n 0 difference if you take the word of the german government for it the revival of german industry and trade Is obvious on last january 30 20 the second anniversary niver sary of his coming into power hitler told germany the national socialist regime has lifted up a nation that had wasted away in dull desperation and his has filled it with strong faith f and confidence in the innate inn ate values and creative powers of its own life if on january SO aw 10 13 1 I demanded four years time for the execution of 0 the first labor program then two thirds of this program has already been fulfilled during the first halt half of this period today tile the truth of his words Is more than ever apparent to the german people public works and re rearmament armament have given guillet impetus us to industrial activity there is an ever increasing consumer demand tor for the products prodoc ts of industry banks have been able to the major par part t of the frozen credits vich which resulted fr from om the panic of 1931 what has baroug brought ht all this about foreign creditors Cre ditora 4 hard on some of it la Is due the factor which chic 2 stimulated recovery in many of the nations of the world the suspension f standard by the united of the gold states but by far the lions share of it has resulted from hillers Hit lers utterly conscienceless economic and financial policies seeking internal recovery germany be began 2 an by simply islin ply canceling her foreign 4 f 0 rz it A Z t tam m 16 7 P al 1 J germany has literally spent billions which did not exist to rearm and this activity is one of the factors which have started her on the way to recovery center part of the fleet which Is being augmented by more and more vessels right hitler reviewing troops left dr hjalmar schacht president of the bank debts she have to worry about those any more let her creditors worry I 1 to resto restore re employment she began huge but ge public works schemes and a rearmament program which startled the world manufacturers were given large lare lar e orders for goods for both purpose pur poss and more workers went back to work she did these things when her gold reserves were ne nearly 1 aly exhausted the mark even now Is only 2 per cent covered by gold we too pushed public works programs with mono mon we weA possessed germany spent billions that did not exist exi st that alone would have stamped nazi I 1 economics as unstable if not disastrous she went beyond that and in 1933 the government ordered industrial employers to put men back to work whether they needed them or 0 r not they were ordered to use less efficient effi clent rink machinery chinery if that were necessary cries of protest were in ruin seemed to men like doctor schacht qc hacht inevitable rut put no the spending of additional money for wages created new purchasing hising power had only an occasional factory been forced to return men to work it would have got hack back mighty little of the new purchasing power created rut but when they all had to do it in in actual stimulation of business resulted so that thai by 19 1914 4 such highhanded high hl h handed action no longer had bid 0 in o be resorted to priming the pump the billions of marks which had been poured into the public works and rearmament programs went th through ronzil the circle of trade tr ade industry was able to make good its frozen credit with tho banking system B hanks binks inks wore were enabled to recover their frozen frown hills bills from tile the financing of public works was put on a reasonably sound basis because treasury tren Fury hills had slowly but surely replaced the frozen frown commercial hills no inflationary inflation nry measures were necessary to protect tile the welchs overwhelming I 1 deficit der icat there was no return to the dark days of a dozen years ago gi 0 the budgetary baft detary high jinks of the nazi government causes no trembling of the confidence of tile the people with its subsequent jib general business de simply because the german people do not know much about it if the deficit Is tremendous rl emend 01 S the german 0 erman people never read about it in the papers or hear bear it discussed over tile the radio the complete authority au thorit V or of the state forbids it what happens when tie cie treasury needs additional funds finds A concrete example Is uval available lable in the record of january of this year the government e nt merely helped itself to to the th resources of the savings banks and tile the I 1 insurance n tur companies roth both were to take over nv r loans required of rOO WO rel welchs ells marks although tile the resources of these institutions were hardly unlimited t the lie money mone y was spent I 1 immediately monedi bitely and soon ran tile the ordinary ordin ary economic and cour c was returned to tile he banks with the upturn in business the hanks biln its savings deposits have actually actu increased so fa far r this amount year by more than all t alie ie from them th the em by government this th Is looked that hitler so goo good d ordered them their to to take another over last august dark evil things haie h ie been dieter dieted for P anre re the nazi new deal lea by tile the old guard to whom such practices are unimaginable they are sure this sort of eco economic perpetual motion machine which develops its own fuel will fall apart or be slowed down by friction sooner of later so far it ha has S not the has maintained its position has even appreciated from time to time internally german recovery has progressed even beyond the hopes of many of the nazi extremists externally the outlook Is not nearly so bad as might be expected from the shameless manner in which germany has treated her foreign creditors by defaulting her debts germany of course ruined her e credit abroad and could no longer buy without laying the money on the line in 1934 the revived ger min m in purchasing power began be an to be so felt that a shortage of raw materials material s for industry began to be feared also prices began to go up this was bad for export trade hitler intervenes again A few factories found it necessary to reduce their output because of the raw material shortage but hitler nipped this in the bud by forbidding factories to let workmen go because of shortage of materials gole government wilment assumed control of the e entire import trade it clamped tha lid down on unnecessary imports it based trade with foreign coun countries teles upon exchange clearing and compensation agreements other nations in order to sell goods in germany had to import german goods doctor schacht put over the plan in a degree sufficient fent for the country to weather v V bathe r the storm germany Is selling enough goods now to to meet her own requirements for raw materials in another drastic government interference ter with business home industries were burdened with a levy which was to subsidize the export industry capital did not like this step ver very y well either and it was protested while it Is still early to predict the result it seems to have been working 0 in a manner fairly smooth so far it will readily be seen that ali the e unorthodox financing of all these government expend expenditures expenditure es depended in large measure upon tile the confidence of the german people in the nations f financial inan stability crit criticism leisi ii difficult the circle of money circulation must not be broken if the people were ever gripped with fear and bc began an hoarding money li if for any reason reason at all tile the money failed to return to tile banks whence it came these banks would be unable to lend the treasury any more funds two alternatives in this case the government govern ment would find two courses open it could continue its aln financing ancen of public wor works ks and rearm rearmament lim e nt by inflating the currency or it could begin cutting down on them to cut down on public works works would be idalin Id killing llin the goose that began laying golden eggs to curtail rearmament well over adolf hitler Hit lers s dead bodyl there is little likelihood of a loss of german confidence however the observers of authority say not like there Is in france where people are never sure of the solidity of the government that happens to be in power at the time german people have everi I 1 confidence in the stability of their government ern ment the censorship of the press pres and radio makes criticism useless western NO union |
