Evening star., 1934-08-27
HITLER CANDLES
IN lob FINANCES
Wheels Turn, Picks Swing
IN Meantime, However,
With Bill Later.

BERLIN R.-Germany, gambling
high on her financial future as far as
foreign debts are concerned. has set
up an equally good gamble, in the
opinion of foreign observers, In the
financing of her domestic economic
recovery program.
It is through liberal use OF public
credit, lately in the form of employ
ment creation warrants" that the
NaH regime has set shovels and picks
to swinging, brought smoke from in
dustrial smokestacks and otherwise
forced drop in Germany's unemploy-
ment figures.
The decrease in unemployment has
provided the Hitler government with
an excellent propaganda weapon and
has been the fond topic of countless
public speeches, but the financing"
side has not been paraded into words
with equal favor.
s76O, 100000 for Jobs.
To date an estimated 1000, ,000, 900
marks, equivalent to $760, 0,000, 900, has
been paid out for employment Gre
alton, from a total authorized Of
$500 900 900 marks, or about 81, ,444,-
100000, for a variety of projects rang
ng from transport and communica-
ion to land reclamation.
Employment creation warrants"
lave been issued through semi-public
redit institutions, since neither
,udgeted funds nor reserves of free
,apital were available, according to an
exclamation by the German Institute
or Business Research.
These warrants have term OF three
months, but are extended when due
md are redeemable by the Reich
within the next five fiscal years.
AS far as loans in connection with
he employment creation program are
concerned, the Reich anticipates
letting back within the next is to rs
,,rears the amounts it will have loaned
Turing the next five years.
Earmarks Revenues.
Meanwhile, to insure financing Of
these employment creation warrants,
the Reich has deposited with the
l2eichsbank 100000 900 marks ($228,-
000,000) in tax credit certificates and
$50, 100000 marks ($323, ,000,000 of
employment creation certificates"
The German Institute Of Business
iaesearch frankly admits this is q
case of financing of the employment
creation campaign by means of pub
lie credit and by relying upon the tax
revenues Of coming years" and that
it. means conscious drawing on the
reserves of the future"
The institute states further:
ITO what extent these reserves
will be formed, or in other words, to
what degree higher tax revenues will
make possible the meeting of obliga-
taons previously incurred, will depend
p'holly upon the success of the meas
tires themselves-upon the strength
Of business recovery"
Two Courses Open.
The institute points out the Reich
"can meet its great obligations result
ing from financing employment Gre
1L1Okl IlCdouICo ClbIlcI Will CuTTcut
hudgetary receipts or by enlarging its
eIebtS."
In this connection there is the
strong prevailing opinion among for
Gign observers that Germany cannot
increase her budgetary receipts until
the third Reich adjusts the mark to
The international situation and per-
EnitS herself to return to normal po-
eition in world trade.
1t also is asserted, in foreign eco
nomic circles here, that the handling
of the employment creation warrants"
has put a severe strain on private
bank capital to the extent of giving
Germany a veritable credit imitation.
AS rule, it is pointed out, the
warrants are drawn by firms supply
ing materials, by contractors, and so
on, and are Endorsed by the body
carrying out the project. The ma
jority have been discounted by pri-
vate banks, it is reported, with thus
far only a small percentage taken up
in turn by the Reichsbank.