GERMAN ECONOMIC PLIGHT

Hawke's Bay Herald-Tribune, Volume 81, Issue 46, 17 November 1937, Page 12

GERMAN ECONOMIC PLIGHT

Our Own Correspondent-1

Schacht's Resignation III Omen for Nazis WHO WILL SUCCEED HIM?

(From

LONDON, Not. 1. Herr Hitler's delay in announcing the zesignatiomof the Minister of Economic Affairs, Dr. Schacht — although this ih already effective— is arousing much speculation. In many quarters it is te* garded as an ill-omen for the Nazis, because Dr. Schacht's history has shown that he has an uncanny power of anticipating to-morrow's masters. It was Dr. Schacht who built up the whole complicated structure of the Nazi economic policy. He is going because he Xrasiders that the Government is straining the policy beyond the saf ety llimit, and he is not prepared to accept lurther Tesponsibility. It is doubtful whether his auccessors ,will be able to handle the delicate bnachinery which he haasbuilt up. Dr. Schacht was one of the first to jUrge Herr Hitler's appointment as .Chancellor, and, more than any other :man, he enabled National Socialism to overcome its initial economic difficulities. For four years he was Germany's ,economic financial dictator. His first big mistake was to incur (the animosity of the militarlsts by eriticising the vast rearmament expendiiure. The promulgation of the Four;Year Plan for material self-sufficiency was the beginning of the end. Dt. Schacht's lukewarm enthusiasm xesulted in his virtual displacement by General Goering, although nominally still at the helm. 3 Because of his prestige and the people 's confidence in him, Hitler . has been willing to allow Dr. -Schacht to continue as a figurehead; but it is, perhaps, significant, that he xefused to remain. Dr. Schacht is at heart a firm believer in capitalistic principles. The last straw came when the Government took over the inining and smelting of uneconomic, low-grade iron ores and virtually assumed control of the privately-owned section o£ the German iron and steel industry. , Ordinarily, Dr. Schacht's resignation would have led to a flight of the reichsmark, but under the existing watertight system of exchange control, no such immediate spectacular consequence will arise. However, there is a widespread feeling that ultimately it may lead to Germany 's financial collapse.