Plight of Germany

Nelson Evening Mail, Volume LXX, 14 March 1936, Page 7

Plight of Germany

FINANCIAL AND ECONOMIC SITUATION

NOT IMMEDIATELY, BUT POTENTIALLY DESPERATE

GIGANTIC ARMAMENT EXPENDITURE DR SCHACHT’S WARNING NOT HEEDED WHY HITLER DECIDED UPON RHINELAND ACTION (United Press Association—by Electric Telegraph—Copyright) (Received Nth March, 10.15 a.m.) LONDON, 13th March. The ‘‘Manchester Guardian’s” diplomatic correspondent says there is more uneasiness in Berlin than is allowed to leak out. Every symptom of discontent is hushed up. Berlin is covered with posters ordering “all responsible persons to spy out those seeking to sabotage German unity and report them to local Nazi headquarters.” There has been a run on savings banks resulting in restrictions being imposed preventing anyone withdrawing more than fifty marks. The “Morning Post’s” Berlin correspondent declares that if the full truth of Germany’s financial and economic situation were generally known it would lead to panic throughout \he country, it is understood the new Budget will not only provide for further increases in taxation to finance the prodigious armament expenditure but it is expected Government servants will be obliged to contribute a portion of their salaries and capitalists surrender 2 per cent, of their capital to the War Ministry. The cost of living has increased so sharply that these and similar measures are likely to be most unpopular. Therefore Hitler has sent troops to the Rhineland to persuade the taxpayers that they are getting something for their money. Financial authorities described the situation as not immediately, but potentially desperate. Dr. Schacht, Minister for Economy, claims there should be more control of gigantic armament expenditure, but this is vigorously opposed by the General Staff and Krupps. Dr. Schacht is reported to have told Hitler in the plainest language that he must consider a 4 per cent, capital levy, a 30 per cent, excess profit tax, and a 5 per cent, cut in wages to avert bankruptcy. It is no secret that Hitler is incensed with Dr. Schacht and decided upon the Rhineland action not only in the teeth of his advice but also against the counsels of the German General Staff and Foreign Office officials, who do not favour a return to the League. FATEFUL DECISION WITHIN NEXT FEW DAYS NATIONAL PRIDE OR POLITICAL EXPEDIENCY (Received 14th March, 10.40 a.m.) BERLIN, 1 3th March. Political circles realise that Germany must take k fateful decision in the next few days whether to sacrifice national pride to political expediency, and opening the door to further international co-operation. One of the reasons why Germany may prove more conciliatory is her desire for colonies. It is realised there is little chance of obtaining a return, which was the next object of German policy, unless she satisfies the world of her sincerity and goodwill.