Charges Reich Default Due to War Plans and Propaganda

Charges that huge sums expended for Nazi propaganda in foreign countries and war preparations at home were responsible for Germany defaulting on the war debt were made by Professor Max Winkler, president of the American Council of Foreign Bondholders and Research Director of the American Jewish Congress Boycott Committee, in a statement Friday.

Scoffing at German declarations that the default was caused by the anti-German boycott, Professor Winkler declared that “a relatively small reduction in the country’s recorded military budget and its vast expenditures to publicists and propagandists would make it possible for Germany to meet in full the interest payments on her external engagements.”

Dr. Winkler pointed out that Goebbels’ Ministry of Propaganda and Popular Enlightenment, has been authorized to appropriate from thirty to forty million reichsmark to spread hatred against Jews in foreign countries.

“If the Hitler administration had succeeded in converting Germany into an economic paradise, as its propagandists hold, “Dr. Winkle asked, “how can Germany recon### cile the incessant plea of pover# with officially reported gains practically every branch of the Reich’s economic structure?”