ILL-OMEN FOR NAZIS.

Manawatu Standard, Volume LVII, Issue 306, 25 November 1937, Page 6

ILL-OMEN FOR NAZIS.

DR. SCHACHT’S RESIGNATION. FUTURE FINANCIAL PROBLEMS. LONDON, Nov. 1. Herr Hitler’s delay in . announcing the resignation of the Minister of Economic Affairs, Dr Schacht although this is already effective —is arousing much speculation. In < many quarters it is regarded 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 considers that the , Government is straining the policy beyond the safety limit, and he is not prepared to accept further responsibility. It is doubtful whether his successors will he able to • handle the delicate machinery which he has built up. Dr Schacht was one of the first to urge Herr Hitler’s appointment as Chancellor, and. more than any other man, he enabled National Socialism to overcome its initial economic difficulties. For four years he was Germany’s economic financial dictator.

His first big mistake was to incur the animosity of the militarists by criticising the vast rearmament expenditure. The promulgation of the Four-Year Plan for material self-suffi-ciency was the beginning of the end. Dr. Schacht’s lukewarm enthusiasm resulted in his virtual displacement l>y General Goering, although nominally still at the helm. .

Because of his prestige and the people’s confidence in him. Hitler has been willing to allow Dp. Schacht to continue as a figurehead ; but it is persignificant, that he refused to remain.

Dr. Schacht is at heart a firm believer in capitalistic principles. The last straw came when the Government took over the mining and smelting of uneconomic, low-grade iron ores and virtually assumed control of the pri-vately-owned section of the ■ German iron and steel industry. Ordinarily. Dr. Schaclit’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.