While Dr. Hijalmar Schacht indulges in speechmaking at Basel, his opponents in Berlin seem to be busy acting. He is listened to with interest because, reports are beinning to circulate to the effect that there is something wrong with the standing of the president of the Reichsbank. Rumors of this sort are, as a rule, the first blow of the axe, the body having been undrmined beforehand.
It is usually the fate of former associates that the next role they are made to play in the eyes of the world is that of a figure-head standard bearer. Ultimately, the standard is entrusted to others, and its erstwhile bearer lands in a concentration camp. It may take some time yet in the case of Dr. Schact, but his opponents are ready for the Job. His enemies are to be found in two camps. One set are striving to bring about the long-wished-for inflation. Dr. Schacht is basiclly not at all opposed to credit expansion. The German ecconomy is at present like a gas balloon that is constantly being inflated more and more. Theoreticlly speaking, in view of the kind of business transactions the German state is contemplaing, there is no dearth of money is a Country that keeps bewailing its poverty. All this is nothing but an inflation moverment couched in terms of refined modern financial technique, which does not make use of throwing an incressed amount of paper money into circulation.
This sort of manipulaton, how ever, owing to its seemingly solid outward from, makes impossible a real robbers’ crusade, which is the fond dream of the inflationishs Nothing less will satisfy them than an open cancellaton of indebtedness brougt about by genuine inflation, which will make it possible ofr those who purchased, in good time, foreingn currency, to derive considerable benefits from the drop in value of the mark. The fact that the president of the4 Reichsbank keeps the value of the mark high abroad, is nothing less than an atrocity to them.
Next to the speculators, the financial theorists of the National Socialists are the strongest supporters of inflation and opponents of Dr.# planks in the Nazi progame. Its author, however, in his capacity of dutiful Secretary of the Ministary of State Economy, could not but submit to the dictactorship of Dr. Schacht. But he will never give up his pet theory, that by printing more notes it will be possible to regulate the prices of commodities and that by turing out still more paper money it will be possible to preak the yoke of taxation and reparantions Who knows, but he may be seeing himself, in his day dreams, as a successor to his present master?
The other class of Dr. Schacht’t opponents are neither speculators nor inflatoists in principle. They merely belive that without devaluating the mark, Germany will be unable to cope with the export currency has been depreiationg namely, of England and the United States. They are hosest citizens who are craving to engagte in oderly business enterpries and who have not made any profits from the contracts for military supplies awarded by the Government. They have and erather vociferous expression of their fellings in the matter, their motto being: ”Down with the mark!”
Neither of these two factions has pointed out, however, that part of Dr. Schacht’s financial policy, for which he deserves to be demounced more than for anthing else. This consists of German goods pay in makrs the value of which is artificailly maintained on a high level, while creditors abrodad are not being paid at all, But, apparently, no one in Germany fells in the least embarassed by this sort of policy Evidently, they regard it as ”clever and ”smart”.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
