RADICAL CHANGES

Manawatu Standard, Volume LIX, Issue 45, 21 January 1939, Page 10

RADICAL CHANGES

GERMAN FINANCE POLICY. DR SCHACHT’S REPLACEMENT. (United Press Association —By Electric Telegraph—Copyright.) Received January 21, 1.40 p.m. LONDON, Jan. 20. The News-Chronicle says Dr Funk’s first step as President of the lleichsbank will he sweeping economies and other devices which Dr Sehacht was opposed. Those under consideration include a capital levy of 20 per cent, the disendowment and confiscation of the properties of the Protestant and Catholic Churches, and the repudiation of foreign debts.

The Daily Telegraph’s Berlin correspondent says the removal of Dr Sehacht was the most drastic step toward the further “radicalisation"' of the Nazi regime since the army purge which was accompanied by the replacement of Dr von Ncurath by Herr von llibbentrop. It means that Germany’s policy will be unrestricted rearmament, the money lor which will be raised by any and .every means, regardless of the possibility of financial collapse.

Dr Sehacht, with the support of the Finance Minister, was pressing for taxation increases in the hope that it would be possible to continue to finance rearmament and public works from revenue. Herr Hitler, realising that direct taxation increases would be most unpopular, refused. The projected cuts in army and building expenditure were dropped as a result of pressure from the radicals. Dr Sehacht, seeing the impossibility of carrying out the plan, and not wishing to be identified with methods of which he did not approve, asked to be relieved of his post. The Telegraph’s correspondent adds that financial circles believe Dr Sehacht has been retained in the Cabinet to ensure he will remain in Germany.