Evening star., 1933-06-25


highly developed sense of political real
tiles he did not see how it could be
arrested until the German politicians
were ready to give somebody dicta-
torial powers.
Then Germany defaulted on repara-
tlons, and in poured the French tC
apply military sanctions. They occu-
pied the Ruhr. seized mines and rail-
, roads, took over Reichsbank branches
Cuno resisted passively. Schacht made
violent speech against Cuno's eco
| nomic financial policy in the privacy
of the "Wednesday Society" circle; and
Cuno fell.
The mark also continued to fall, al
though StreSemann, an infinitely
tougher man than Cuno, had now taken
over the chancellorship. BY November
of that memorable year, 1928, the mark
touched the fantastic rate of 100000
100000 to the British pound. Nearly
1000 printing presses, running in 140
factories, and fed by 30 printing mills,
all working day and night, were occu-
pied trying to keep pace with the
marks meteoric fall. Stresemann had
offered Schacht the finance ministry
in his cabinet. Schacht had refused.
He had definite ideas and did not pro-
pose to trim them to the winds of
popular politics. 1t was neither obsti-
macy nor arrogance. He knew he must
have free hand. or fall.
i Produce Financial Plan.
He had already produced at Wed
nesday Society meeting a complete
plan for rehabilitating finances. His
plan was based upon gold. Helfferich.
the former Hohenzollern secretary of
the treasury. had rival plan. 1t was
based on land values. Stresemann
had to Go something. He himself
lacked technical knowledge, but his in
telligence was profound. Schacht pro-
posed to put Germany in the interna-
tional current and could gain British
and American support. tStrong and
Montagu Norman, occupying the key
financial positions in America and
England, both were anxious to stabilize
currencies by getting back to gold)
date. Land values! Who would sup
port currency based on German land
values-who except a land-oWning no.
bll1ty without cash resources? Schacht,
further, had obviously the will to carry
currency scheme through.
A few hours before he fell. Strese-
mann gave Schacht what he wanted
d1ctatorial powers as currency commits
s1oner. Schacht's luck was in. Haven
stein, for twenty years head of the
Re1chsbank, died. Helfferich was next
IN line OF succession. But Marx, the
new chancellor. cut across tradition
and precedent and put Schacht, a new
regime man, at the head of the central
bank.
| Thus, dramatically and overnight
| Schacht arrived. Two DAYS before he
was, for political purposes, only a voice
IN debating society. Suddenly he
was precipitated into the national
! arena, with unprecedented executive
powers, virtual controller of Germanv,s
economic life. And he achieved this
position in the state because the poIit-
lcal leaders had no man of their own
/ capable OF dealing with the situation.
he was no longer the expert used as
TOOL: He was the expert in revolt, in
Slstent, intriguing. challenging. thrust
ing MS way into the field of control of
the state SO sadly mismanaged bv ex-
elusive control. first by warrior land
owning caste and then by a new breed
OF popular politicians.
Had Technical knowledge.
Schacht's task was not an excessively
dlmcult one once the political powers
that-be had smoothed the road for him
and protected him during his progress
along 1t to the stabilization of the
| mark. He had the technical knowledge
| and after that it was mainly a matter
OF VIII power. Montagu Norman helped
on the technical side. So did Strong,
Iney mad their reasons. But Schacht
was completely successful as a cor
! Structlve dnancier and economist and
as head OF the central bank he retained
pretty complete control of Germany's
economic life through the crisis wears
to 1929 when he resigned because he
objected to the politicians interference
with the Young plan as drafted by the
bankers and economists
| Look at his eyes. large but narrowed
under straight broWs. Look at his
nose. big and wide -nostriled. Look
at the set OF his head on his neck
Is poised like a boxers. Glance at
/ these physiological points which give
clues to the psychology of this man
and then observe that Schacht refused
to mix it, but stood clear of events
from 1929 until the advent of the Nazis
He saw that Germany was headed for
something. He smelled 1t. And he
| stood from under and watched events
| The Nazi group thus were able to take
! over man untainted by relations with
I the governing group during the pre-
! ceding four years and Schacht was able
hostile to Left tendencies and SUBJ
scribing to the NaA nationalistic ideals
/ and aims.
/ Schacht, besides. has all the technical
knowledge ana experience needed to
keep the regime afloat in stormy seas
+ With Schacht. Hitler hopes to make
himself independent Of Hugenberg and
! the whole old regime crowd He may
manage it. Schacht willing. With
! Schacht. Hitler hopes to secure the
successful fiotation of great internal
loan to back his regime. And he NAV
manage that, too. the international
bankers willing (Schacht has already
secured Montagu Norman's conditional
: pledge Of aid. Hitler wants to get the
interest rate Of Germany's external debt
reduced. 1t would be a great triumph
for him. The technical methods, the
strategy? Leave that TO Schacht.
Schacht is already on the job. The
proclamation Of German transfer diff
culties. the procedure followed at the
May meeting of the creditor representa-
ttves in Berlin, are a first step in the
Schacht operation.
His Views Are Fixed.
1t is Illuminating to take a b!rds-eye
, view OF the fundamental ideas and
! views OF this remarkable man. for they
are Ixed views Sclentlncally based and
do not shift with changing conditions
Moreover, they put spotlight on the
world struggle of capitalistic society to
keep aioat during the great transition
period ushered in by the war and the
harnessing Of science to the industrial
machine
His entire philosophy is contained
within the compass Of two memorable
phrases which he has uttered They
are: The world can only recover
when economic experts, instead of poll
ticians and diplomats, assume the lead
ership Of the fate OF nations" and
Economic facts alone can furnish the
weapons against political aversions.
contrasts OF races and unjustified ma
tional pride"
He hates Socialism in general and