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Loans and Deficits

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Reports in the New York Times and other newspapers disclose the fact that the economic position of Germany is going from bad to worse and the deficit in Germany’s budget is growing.

This is not surprising if one takes into consideration the catastrophic decline in German foreign trade since the Nazis came to power. This decline, chiefly due to the world boycott of German goods, resulted from Hitler’s policies.

The colossal drop in the Reich’s trade, reaching seventy million dollars, is perhaps good proof that not the Jews alone are boycotting German goods. It shows best how different governments are utilizing the anti-German boycott to rid their markets of German goods and to replace German products with theirs also in other countries.

It was reported this week that Germany is seeking a huge loan in the United States. Needless to point out that, with the tremendous deficit which Hitler is now facing, no American concern would seriously consider the granting of any loan to the Reich at the present time. Especially with the anti-Jewish legislation still in force in Germany and with the boycott against Germany still not being recalled.

The fact that the Nazi government intends soon to raise an internal loan of vast proportions may be interpreted to mean that the Hitler Cabinet is not so optimistic on obtaining a loan in America. The delegation which the German government has sent to the United States to negotiate for such a loan, and which includes such a figure as Stinnes, is still in the United States. But there is no doubt that this delegation will return to Germany without any successful results, even though certain American banking firms may be ready to consider the granting of a loan to Germany on special terms.

It may not be known to many, but it is a fact that the present administration in Washington would consider it premature to approve of any American loan for Germany. Hitler’s chances of obtaining a loan in America are, therefore, very meagre.

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