THE NAZI TREND

Evening Post, Volume CXXII, Issue 119, 16 November 1936, Page 3

THE NAZI TREND

DROPPING SOCIALISM

SCHACHT EMPHATIC

The sharp antagonism, between, Pr. Schacht, the German Minister of Economic Affairs, and Dr. Ley, the head of the Labour Front,' has been concealed from the German public, but it can be seen very clearly in a letter of which a copy is in the possession of your correspondent, wrote a special correspondent in the "Manchester Guardian" recently. The letter is headed "Der Reichs and Preussische Wirtschaftsminister, Berlin, June 26, 1936," and is addressed to Dr. Ley. It is signed by Dr. Schacht himself.

Dr. Ley's effort all along has been to include ' the employers' association in the Labour Front, which has replaced the old- trade unions. He has the support of the smaller employers and retailers. It is chiefly'these who are the economic foundation of the National Socialist . movement. (The Third Realm is usually represented as a regime dominated by the German middle class and by the so-called "little man," to ; whom-'-more'' than to anyone else Herr Hitler owed his victory.) But the fact is that the "little man" and the retailers are condemned to almost complete impotence in the Third Realm,; Their own organisations carry no weight. The Labour Front is carrying less "and less, and it is not surprising that "the "little man" and the workmen are trying to join hands in resisting the encroachments of "big business." The Third Realm is dominated, much • more than ' the republic was, more, even - than the empire of the Hohenzollerns - was, ,by I "capitalists" and - by ■ the trusts and' monopolies whoso chief, representative is Dr. Schacht. ENCROACHMENT SEEJ», ] Dr. Schacht begins his letter by I calling Dr. Ley's attention to. reports that the Labour Front is attempting to encroach on the employers' and handi-, craftsmen's organisations, , and points out that Dr. Ley himself is said to share, the responsibility for these attempts. The National Association of Handicraftsmen (Reichsgruppe Hand-J werk), he continues, is said to have come to an agreement with Dr." Ley himself,.'-an agreement. by which the tasks of this association would' in future be performed by the Labour Front. Dr. Schacht declares: "I alone am responsible for such measures, and I cannot imagine that any responsible person in" the Labour Front could suppose that any, subordinate of mine would overstep his own competence or break, the. pledge that binds him lo myself. I need not conceal the fact that I would at- once relieve of his duties any person '.employed under my authority who would disregard the' duties entrusted, to him and would take orders from anyone who is not competent to give them."' CAUSING TROUBLE.. . Dr. Schacht sternly warns. Dr.. Ley against the "totalitarian -' aspirations" (as he calls them) of the' Labour Front. They are, he say's, adding to-the difficulties of tlie independent business associations. Retailers, -he continues, are subjected to "a growing pressure" at the hands of certain officials of the Labour' Front. He continues:

". "I must beg you most emphatically to take measures .. . . that will put a definite stop to the attack on all business organisations and to,the encroachments, on matters that are .within my competence." > f In March last year an agreement was signed delimiting the competence of the

Labour Front and of the employers' associations. According to this agreement the functions assigned lo the Labour Front were to be purely educational. Tho Front was not to concern itself with matters relating to; the organisation, of trade and industry. The agreement (known as tlie Leipzig Agreement) received the sanction of Herr Hitler. But the Labour Front attempted lo -'overstep it, and Pr. Schacht. in his letter, comments severely on this. He declares that, he had hoped for harmonious co-operation between the Front and the employers' associations, but he insists that the latter must retain their independence. "I have," he says, "always held pr; independent economic organisation to be an absolute necessity." DEMANDS OF WAR ECONOMY. One of the reasons why this is-go (in Pr. Schacht's opinion) is the demand made upon the German economic system by national defence. He goes on: "I would like to point out in complete and explicit agreement with the Minister of War that'an independent organisation of employers is randcrec indispensable by the exigencies of I war economy. • "Quite apart from this, I must finifl. up by pointing out that the organisation of business associations is deter mined by law. Unfortunately, i' seems that this was quite forgotter when the attacks I. have referred tc were made. The law.is promulgated by the Fuhrer himself." Dr. Schacht's letter ends with the words: "I would be grateful if you would inform me of the. measures you have taken. Heil, Hitler!;— Yours very .respectfully, H. Schacht." The letter marks -the • end1 of, what little share Labour may have • had' in the'regime established ,by Herr-Hitler and his followers. It eliminates the "Socialism" from "National Socialism" r -d places the fundamental • private capitalistic character- of the . Third Realm beyond a doubt, showing "that this character is being, preserved in tlie interests of a war economy. ■