London (Sep. 11)
Hjalmar Schacht, German Economics Minister, hurls threats at the world instead of buckling down to the problem of remedying the Reich’s economic distress, states the Investors’ Chronicle and Money Market Review in an article. The article reads:
“In his now usual week-end outburst Dr. Schacht peremptorily calls for a suspension of interest payments due by Germany on all external post-War loans. The thinnest excuses do duty for argument. In short Germany will not pay! A ton of Nazi theory is to equal an ounce of business fact. After suspension for an unstated period of years interest may be resumed at much reduced rates. The impudent assertion is made that Germany has actually been repaying her post-War debts. How? Does Dr. Schacht mean by market purchases of German loans at prices marking desperation sales by holders having every good reason to doubt Germany’s desire to pay rather than her capacity to do so?
“All this talk of Jewish boycotts and of a world ambition by nameless Powers to ruin 65,000,000 people is verbal camouflage. Nor is there evidence that nations decline to accept German manufactures: her difficulties need be no greater than those of any exporting country. And all the time the London money market bears daily testimony to the one practicable and ready course. This country and her Colonies are now on the desired basis of interest payment of 3 to 3Â½% by the time-honored method of honouring their bond and effecting a voluntary conversion. Such a path has all along been within German achievement, and it is still availableâ€” given confidence and good faith.
“German mentality at the moment, as expressed at least by Dr. Schachtâ€”who declares himself to be a ‘man of business’â€”is singularly unfortunate. No country with highly developed industries can hope to be self-sufficing, since the raw materials are scattered over the world, and the need for them can only be satisfied by world trading. Admittedly Germany is in a position of great difficulty. Under the influence of Herr Hitler far too much attention has been given to internal politics and practically none at all to the economic problems which lie at the root of the nation’s life. It is Dr. Schacht’s business as Economic Minister to remedy that, but instead of tackling the job he has so far done little but hurl threats at the rest of the world for its malevolence in keeping Germany down. Yet it must be manifest enough to him as a ‘man of business’ that the world’s interests are not served by ‘keeping Germany down’ in an economic sense, but quite the contrary; so why these tirades?
“Perhaps a reasonable explanation may be that the ‘Economic Dictator’ does not yet find himself capable of pulling against the flowing tide of national sentiment inspired by his superior, the Leader and Chancellor. If so, it is a curious situation, for Dr. Schacht has been appointed for the express purpose of dealing with those vital elements which the politically-minded Leader brushes aside.