Property Decree Helps Put Reich Loan Over; Germany Found “definitely Anti-capitalist”

Finding the entire trend in Germany “definitely anti-capitalist,” the stock exchange Gazette asserted today that economic dictator Goering’s decree for registration of Jewish capital and property was responsible for the success of the Reich Consolidation Loan by causing a rush of Jewish investors seeking to escape confiscation measures. An article in the Gazette, leading British financial periodical, analyzes the decree and its far-reaching effects.

Citing failure of the response in the first week after the loan was issued, the article declares:

“There is one obvious and important lesson in this expropriation procedure, namely, that Germany’s financial policy has now reached the stage where reliance upon large-scale borrowing for financing of public expenditures no longer suffices to meet the bill. The whole political, social and economic trend in Germany is definitely anti-capitalist.”

The German Government, according to the Gazette, is now preparing a scheme to transfer all Jewish property exceeding 5,000 marks ($2,000) into Reich loans. This it characterizes as the “most blatant measure for expropriation yet undertaken by the Nazi authorities.”

Outlining the expected procedure to be followed by the Berlin Government in executing the Goering decree, the Gazette declares that after all the returns are in special commissions will be appointed to determine the “just” value of the listed property. “Already,” the article states, “it is openly admitted in Nazi circles that the just value will not in any case exceed 50 centum of the normal market value of the property.”

The Gazette reveals that a number of banks have been organized to act as Government agents to take over Jewish property at the price determined by the Goering commissions, which will be paid in Government bonds.

The article estimates the present value of Jewish property in the Greater Reich at approximately three billion dollars. Of this total, about $250,000,000 will be left the Jews under the $2,000 provision of the decree. “Most of the remainder,” it is added,

“either directly or indirectly will be made available for purposes of the State; half of it by direct confiscation through arbitrary determination of a just price, the other half by compulsory investment in Government sounds.”

The Gazette does not anticipate difficulties in disposing of the property, with the exception of real estate, pointing out that most Jewish industrial enterprises are high earners and are coveted by German concerns. Other factors cited as favoring quick liquidation are the shortage in investment possibilities and inability of foreign concerns to transfer their profits abroad, thus necessitating re-investment in Germany.

“Some of them,” the article declares, “have already made the fullest use of opportunities of acquiring Jewish business interests.” It continues:

“As soon as the program of expropriation became known, many Jewish capital owners began to subscribe heavily to the latest Reich loan in the hope that investments in Reich bonds would not be subject to ‘just’ price corrections. It is indeed difficult to see how the Government can do anything else than leave Jewish investments in Reich loans untouched. It would, after all, smack too much of arbitrary spoliation if Jewish investors were to hand over Reich loans to the Government ‘s special banks, then to be told that their just price was only 50 per cent of the official Boerse and then to be handed back half their former holdings.”

Meanwhile, however, the Gazette points out, “the Nazi authorities have made it plain that they will recognize for special treatment only those Jewish holdings acquired before subscriptions to the latest loan started.”