The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-08-23
On the
World Front
Suppressing News
From Fascist Germany
HitIer's War Financing
BY HARRY CANNES


DELIBERATELY, the lead
u ing Wall Street-controlled
newspapers have suppressed
one of the most significant
news reports ever to come
from Fascist Germany. A
foreign editor on one of the
New York capitalist newspapers
admitted to me that the following
United Press cable from Berlin, by
H. A. Peters, United Press staff
Correspondent, was suppressed:
BERLIN, Aug. 2l.-Open re
volt against the Nazi storm
Troops broke out in the Outskirt
of Berlin tonight for the first time
since Adolf Hitler rose to power
as Chancellor of the Reich Is
months ago.
"ScOres of excited workers
mobbed Nazi brown shirts who
swarmed down uEon the labor
quarters in the suburbs making
wholesale arrests in Hitler's first
move to convert the 'erring 10
Der cent who dared vote against
him in last Sundays plebiscite on
approval of his seizure of complete
power in Germany.
1.-THE arrests were made pre-
sumably as part Of the drive
against those who voted fNein.'
They were accompanied by open
resistance on the streets as work
ers milled about in bold revolt
against the heavy handed meas
ures of the storm troops. They
refused to permit the victims to
be taken to brown shirt head
quarters"
THE New York Times corresponds
ent, Frederic T. Birchall, on the
day this occurred devoted his cable
story to the concert of the Mil
American Legion Band, and
the mingled playing Of the Star
Spengled Banner, Deutschland
Ueber Allies, and the Fascist an
them, Horst Vessel.
FROM another Wall Street source,
1 a lawyer, we get revealing ex-
pose of Hitler and Schacht's plans
for war financing. In the United
States Law Review, June 1884, IA
with a very limited cir
price 81 an issue), we read
the following:
CIR. SCHACHT'S latest negotia-
" lions with Germany's foreign
tend to confirm the sus-
picion that international bankers
habitually connive with the inter-
national munitions ring.
Last year Germany's favorable
trade balance slowly declined.
turned unfavorable in January and
February of this year and showed
a slight export surplus again in
March. This is not entirely due to
the boycott of German goods, it is
also caused by the doubling and
trebling of German imports of raw
materials to be used in the war
industries.
According to Max Bergner, writ
ing a new emigre publication,
Europiasche Hefte, Schact has
been trying to persuade Germanys
creditors to finance German re-
armament. The country needs
three or four billion more marks
for raw cotton and various metals.
And Schacht wants to pay for these
imports in scrip similar to that now
being used to pay interest on for
eign loans. The modus operandi
of the scheme would be as follows:
ttTIP TO now foreign creditors have
" financed German exports by
accepting scrip, and the plan Is for
them to take still more. If they
want money, how will Germany pay
them? Easy enough. They can
get all the goods they want, and
cheap ones, too, for Hitler's Ger
many can beat Japan itself. Heavy
taxation and low wages have pre-
pared the way for gigantic dump
ing campaign that Schacht is now
He will accomplish the
same thing as he could with in
hation and perhaps go even
further. But the purpose OF this
dumping will not be to increase
German exports.
"The primary purpose of Japanese
dumping is to enable the country
to prepare for war, and how much
more is this true of Germany. The
driving force behind Schacht's
policy is Germany's hunger for raw
and dumped exports will
purchases of raw materials
abroad. Conceivably, the world will
tolerate and participate in this
speculation of Schacht's, for it feels
that otherwise Germany will be
forced to initiate, and thus any in
ternstional currency sterilization
will be made impossible.
ut also feels that there is no
other way of getting Germany to
pay back the billions already owed
If Schacht saves the world
from this danger, it will repay him
by financing German armament. It
may even happen that the first war
loan to Germany will come from an
enemy country
So when Hearst tries to tell his
readers that there will be no war
because there is no money. this
organ of the big corporation lawyers
shows what lot of baloney that is.
Especially, when it comes to war
against the Soviet Union at may
even happen that the first war loan