DR. SCHACHT ON CAPITAL

Poverty Bay Herald, Volume LXIII, Issue 18920, 23 January 1936, Page 13

DR. SCHACHT ON CAPITAL

VIGOROUS DEFENCE ''FORCE INJUBES TR\D E" BERLIN. Dec. 1. A passionate defence of capitalism wa.-. made this morning by Dr. Schacht. Reichsbank President and German Trade Minister, addressing the Academy of Herman Law on "The Reform of Share Law." Much of his speech was a challenge to the unorthodox economic theories aired in the Nazi press by pseudo-Nazi Radicals, and allegedly anti-capitalistic writers 011 economics. Referring ironically to the various Nazi anti-capita list Ic slogans. Dr. Schacht made it clear that he did not think" highly of these gentlemen who lightly cry' out for the destruction of German capitalistic economy without realising the consequences. "Force is injurious to trade policy," he said. "The masses confused capitalism with riches, but the share is a capitalistic instrument. "Agrarian laws which hinder progress will not help to win the productiou-of-food campaign. .Agriculture, trade, industry, and transport cannot dispense with the most efficient capitalistic and technical equipments. A modern army, more than any other institution, requires a capitalistic foundation. "A nation which is not capable of building up and developing economically a capitalistic and technical apparatus has relinquished its historical importance, and will in future be at. the mercy of world events." Dealing with (lie question of limited liability, shares, Dr. Schacht explained that their anonymous and transferable character—to which Nazi economists ob-ject-—cannot be changed. For if the ■nying and selling of stocks and shares were made difficult the floating of newloans would be rendered impossible.