The Waikato times. TUESDAY, SEPTEMBER 4, 1934. DR. SCHACHT MANOEUVRES

Waikato Times, Volume 116, Issue 19352, 4 September 1934, Page 4

The Waikato times. TUESDAY, SEPTEMBER 4, 1934. DR. SCHACHT MANOEUVRES

Following his speech a week ago at the Leipzig autumn fan, in which he sought to conciliate the attitude of foreign opinion towards Germany's export trade, the Nazi Minister of Economics, Dr. Schacht, apparently carried his theories a good deal further in the speech delivered at the Agrarian Conference at Badeilsen on Thursday. His suggestion of a moratorium on Germany’s foreign debts, which was backed up by an assertion that the country s ability to transfer payments was exhausted, has met with a decidedly hostile reception in London.

Dr. Schacht has left no room for doubt concerning the objective toward which his policy is being directed. He clearly desires the complete cancellation of Germany’s war indebtedness. There are many points which provide justification for this ideal, but the methods adopted by Dr. Schacht to secure it are more likely to prejudice than to assist its realisation. Coming so soon after the settlement of the position regarding the Dawes and Young loans a settlement which was reached only after the threat of pressure from Britain —the claim for a moratorium has not only failed to find sympathy, but has created a distinctly bad impression.

Dr. Schacht is due to discover that the manoeuvres and intrigues which made him economic dictator of Germany under three separate regimes will avail him nothing in the world of international finance and commerce, where straight and honest dealing is the surest and most direct road to success. The creditors of Germany do not wish to see a great country permanently crippled and disabled from contributing to the prosperity of the world by an intolerable burden of indebtedness. On the other hand, however, they require very definite assurances that Germany is prepared to live in concord and amity with her neighbours before they will relax the advantage which they hold.

So long as money is being frittered away within Germany on her internal policies, or being applied to the development of armaments in contravention of the Treaty of Versailles, foreign creditors may demand with every shadow of right full settlement of their accounts. Germany cannot have it both ways. She must choose between isolation and co-operation, and the evidence points to the latter course as the most advantageous for both her and her creditors. If she wishes to build up her military strength, she must be prepared to live alone and be self-sufficient, the tendency being towards a total cessation of imports and exports. If she desires prosperity, coupled with a resurgence of her external trade, she must abandon the methods hitherto employed of applying her creditors’ money to increasing her armaments.