THE NAZI REGIME

Evening Post, Volume CXXVII, Issue 17, 21 January 1939, Page 14

THE NAZI REGIME

SCHACHT'S DISMISSAL

; REASONS ADVANCED

FUNDS FOR ARMAMENTS

(By Telegraph—Press Association —Copyright.)

(Received January 21, 1.40 p.m.)

LONDON, January 20,

TJhe Berlin correspondent of the "Daily Telegraph" says that the removal of Dr. Schacht from the presidency of the Reichsbank is the most drastic step towards further radicalisation of the Nazi regime since the army purge. Taken in conjunction with the replacement of Count yon Neurath by Herr yon Ribbentrop as Foreign Minister, it means that Germany's policy will be for unrestricted re-armament, the money for which will be raised by any and every means, regardless of the possibility of financial collapse.

Dr. Schacht, with the support of the Finance Minister, was pressing for taxation increases in the hope that it would be possible to continue to finance the re-armament programme and public works from revenue. Herr Hitler, realising that increases in direct taxation are most unpopular, refused.

Projected cuts in the expenditure on army building were dropped as a result. of pressure from the radicals. Dr. Schacht, seeing that it was impossible to carry out his plan, and not wishing to be identified with methods of which he did not approve, asked to be relieved of his post. The "Daily Telegraph" adds that financial circles believe that Dr. Schacht is being retained in the Cabinet to ensure that he remains in Germany.