Evening star., 1933-06-25

were using the provision Of light and
power as an additional form of taxa
ton. Whereuoon he cursed the ma
tionalization Of industry root and
branch.
Sees Faults In Socialism.
"The fundamental malady Of the So
cialist system" he declared, 'is the
tremendous generalization Of the ma
chinery of the state. The overgrown
bureaucracy and the excessive number
of civil servants slow up the whole
administrative enterprise. Any enter
prise in which the overhead costs form
too large a percentage OF the total re-
turn is spending its capital, and will
soon collapse
He does not merely believe in de-
Tending the national economic inter
ests of Germany; 1t is an article OF
his faith. But he thinks (and this is
in line with the vaguer Nazi ideas OF
race superiority that nations can ar
range cartels. associations, mergers OF
interests thus giving the economic
forces of a powerful and industrious
conglomeration of tribes a chance to
win a place in the sun, II not Conti-
mental or even world dominance, with
out the intrusion of the warrior caste
and military war, neither of which he
likes.
Thus in the first postwar phase, he
embraced the ideas Of Pan-European
political union, and advocated the So
called Continental policy which
aimed at an economic understanding
with France and joint development
of French and German industries. The
only fly in that ointment was that
control in the mariner
ship-and so did Germany.
Schacht also is the author OF the
bright idea (Which may yet come to
something) of taking the colonial
question cut of international and ma
tional politics by getting Britain,
France, Italy and possibly the United
States, with one or two other coun-
tries, into a merger to develop the
German colonies fer the joint beneflt OF
all. The only fly in that ointment,
once this project was put into practice
for the German colonies, now man
dated to Germany's conquerors, is that
il would not be long before Germany
would be pressing for the extension OF
an enlightened and economically sue
cessful and peace-stimulatlng technique
to the colonies now administered unoer
the French. Portuguese, Belgian. itanan
and British flags, with the result tnaI
certain imperial nations would lose
their valuable special interests ~
Africa for a START, and the cniei
beneficiary would be the mighty ciahg-
orous workshop that is Germany.
Wants Territory Returned.
In this field Schacht is in the com;
many of many advanced economists ol
pacific tendencies. He mlght even, WIZ
rreservations on phraseology, be n; u.
wells sneaking-Wells, with his 1oea
that the major task confronting Woilo
craftsmanship is the organizing ulioel
10 control of world boards oil such
iaroer interests of mankind as Trans
mort and raw material supply. ou'
Yhen you talk to the Relchspank pleai
dent about Upper Silesia and the folisii
Corridor to the Baltic, his romantlc ue-
tachment vanishes. These terrltoiies
must be returned to Germany.
we're hers. and they were looleo.
sides. without them Germany ecoiiornS do
IS disrupted. Until restitution or,e nna
the financial reconstltutloh VI
is impossible. And so on. ,er-
The nationalistic approach, one per
ceives to economic problems. Hls caso
is arouable. The extraordinary peaSe
treatV perpetuated at Versaliles mas
created such cases, arguaDle In oeIniS
If economics and finance, all over Iu a.
rome But many folk can not sec ~,
An,onp the latter have been from tiie
etart most of the Allied statesmen H.
They met in Paris to talk about repa-
rations-purely question OF "na. - -.
many could pay, and when, anu III" al"
And Schacht, the chief Gernladd e,,ss-
gate, roughly thrust the aloresa!u 4 r.ere
ton into their midst. ihey "a one
shocked "A brain storm, salo ons
oreSitor delegate. shaking his heao'
"These economic experts!" exclaimed d
british diplomat over dinner tnat h.siit: !.
IT inst shows what mistake II -
70 send them to these conferences ~, >,
s'ear "Tactless," ct politically inept," no
diplomat" are terms which are nkeiy
10 come Schacht's way again oui nis
the urogress of the London conlelene;e
That is because he IS an ecoiioan1> a1
autocrat who is impatient ol ueeep
tions. half truths, lying WIN nsui I1;,
dope, bologna and mug -Wuhlp odaI
contpmpt Of politicians is only eXceeoee
bv his distrust OF publics which arc
Governed by passions and preJuoice'
and misled by words, having themseEe'
neither time nor inclination to make
~Business men in different nations
nearly always understand one another;
he says. That is because they tan
as they think and do not waste time
employing empty phrases intended 1oi
the public" o,-
Little wonder that the 57-year-ot
Schacht. mild family man IN prlVat'
life, industrious, devoted. apstemious
should in public life be an autocrat 2
well as an economist. He may be tn
reconstructor of Germany'S economl
and financial life. and the man upo,
whom Hitler chiefly depends to provid
rising instead of falling econom
tide for the NaZi regime. but as
person dependent for power upon per
sonal popularity and the emotional ac-
claim of the crowd, he would las
about as long a. . lump Of ice tn
Hadess