A BACKGROUND TO THE NEWS

Dominion, Volume 32, Issue 104, 26 January 1939, Page 9

A BACKGROUND TO THE NEWS

Dr. Schacht’s Dismissal

The dismissal of Dr. Hjalniar Schacht from the presidency of the Reichsbank is Marshal Goering’s second victory over this wizard of Getman finance. The first was the resignation of Dr. Schacht from the post of Economic Minister of the German Reich some 12 months ago. He was the last obstacle to Marshal Goering’s Four Year Plan.

Four years ago Dr. Schacht told Herr Hitler that he could not satisfactorily fulfil his functions as president of the Reichsbank unless he could at the same time take charge of the Ministry of Economy, because, as he said then, economic life, in the long run, rules currency. His wishes were granted. Within three years he Succeeded in setting up a coherent system of endless internal circulation of goods and services which still allowed for maintenance of a margin of profit for the producers and for relative stability of currency as a medium of exchange. He wanted to improve the system by extending trade with the rest of the world, and he argued that German imports of raw materials and food products as they stood then were insufficient to make possible a vigorous enough development of the Reich’s economy. He was, in a word, opposed to a policy of isolation.

From the start he was opposed by Marshal Goering, whose reasoning is: Germany cannot expect to increase her s purchases abroad because the requisite financial credits would have been given her in Great Britain and the United States only on political conditions which she cannot accept unless she abandons her forcible policy, which she is not willing to do. Besides, in wartime, foreign supplies would fail her anyhow, as her foes would control all maritime traffic. •

Therefore, he argued, there was no other course open to her but to produce synthetically, within her own limits, oil, rubber, wool, cotton, and numerous other essentials.

As early as May, 1937, Dr, Schacht objected to the whole undertaking, which he denounced as utterly destructive of all he himself had achieved. He argued that Goering’s plan weuld do away with the comparatively stable prices he had been fortunate enough to preserve, and, moreover, that it would strike a last blow at the capitalist structure. The New Diplomacy The dictators, Herr Hitler (Germany) and Signor Mussolini (Italy), are reported to be making new claims. The claims are giving the Premier of France, M. Daladier, anxious concern. Meanwhile, in London, Mr. Neville Chamberlain said: “You know I have done all I,can to preserve peace for 'ourselves and others.” The meeting of Mr. Chamberlain, M. Daladier, Herr Hitler and Signor Mussolini in Munich during the Czechoslovakia crisis led one commentator to say that “an era of one-man diplomacy has come to the international relations of Europe. ... In essence relations between nations depend nowadays upon direct communications between the heads of governments. .“The public is accustomed to the personal intervention of dictators in diplomatic affairs. But a British Prime Minister has firmly gathered into his own hands the threads of control of the Foreign Office, and now Edouard Daladier, Premier of France, claims to have taken a most important initiative in suggesting a meeting between Mr. Chamberlain and Chancellor Adolf Hitler. Foreign Ministers seem to have been reduced to the position of aides-de-camp to the heads of Governments, whether totalitarian or democratic. . ..

“Today it is usual deliberately to direct the attention of the public toward showy dummy activities while vital talks proceed in the shadows. . . . It would be inaccurate to say that Europe is ruled by a four-Power pact, but it is right to declare that the affairs of the Continent are in large measure decided by agreement or dissension among actors like Mr. Chamberlain, M. Daladier, Herr Hitler and Signor Mussolini “At Berchtesgaden Mr. Chamberlain confronts Herr Hitler alone. What passes between the two heads of Governments is a profound secret to be given out later in strictly measured doses....” The German Navy

I\. photograph in “The Dominion” yesterday showed ■ Germany’s biggest' battleship, the. 26,000-ton Scharnhorst, which was put into commission on January 7 last. According to the German Naval Annual for 1938, when the new vessels now building are delivered the German fleet, excluding older units, will consist of: two 35,000-ton * battleships with 15-inch guns; two 26,000-ton battleships with 11-inch guns; three 10,-000-ton “pocket battleships” with 11inch guns; three 10,000-ton armoured cruisers with 8-inch guns;. two 10,-000-ton cruisers with 6-inch guns; eight 6000-7000-ton cruisers with 6ineh guns; two aircraft carriers of 19,250 tons; 22 super-destroyers, 16251800 tons; 30 smaller destroyers; 61 ocean and sea-going submarines. The establishment, it is pointed out. is based on the Anglo-German tonnage rate of 100:35 fixed by the Anglo-Ger-man naval treaty of 1935. In submarine tonnage the treaty ■ entitles Germany to 45 per cent, of the British total, and reserves to her the right t o go up to 100 per cent., provided that she first consults with the British Government.

A feature of the two 35,000-ton battleships, says Hector Bywater, a noted British naval authority, is their enormous beam—llB feet. Th’is : compares with the 106 feet of the Nelson and Rodney, the broadest ships in the British Navy, and 105} feet of the Hood. It is evident, he adds, that the underwater protection of the German ships is exceptionally strong. They will mount eight 15-inch guns, 12 6-inch. and 12 4.1-inch anti-aircraft guns. The two 26,000-ton battleships, Seharuhorst and Gneisenau. mount nine 11-inch guns. It is explained that this comparatively small calibre was chosen to save weight for armour protection. The personnel of the German navy is said to be nearly 50,000.