The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-10-31

B possessed Germany spent billions
81 that did not exist!
B That alone would have stamped
81 Nazi economics as unstable if not
81 disastrous. She went beyond that,
81 and, in 1888, the government ordered
B Industrial employers to put men back
u to work whether they needed them
n or not. They were ordered to use
D less efficient machinery II that were
necessary Cries of protest were in
B vain. Ruin seemed to men like Doc
B tor Schacht, inevitable. But, no, the
8 spending of additional money for
= wages created new purchasing power.
Had only an occasional factory been
forced to return men to work, it would
have got back mighty little Of the new
purchasing power created. But when
they all had TO do 1t, an actual stimu-
lation of business resulted, so that
by 1884, such high-handed action no
longer had to be resorted TO.
Printing the Pump.
The billions of marks which had
been poured into the public works and
rearmament programs went through
the circle Of trade. Industry was able
to make good it's frozen credit with the
banking system. Banks were enabled
TO recover their frozen bills from the
Reichsbank. The financing of public
works was put on a reasonably sound
basis because treasury bills had slowly.
but surely, replaced the frozen COM
mercial bills No inf1ationary measures
were necessary TO protect the reich's
overwhelming deficit. There was no
return TO the dark days of a dozen
years ago.
The budgetary high jinks of the Nazi
government causes no trembling Of the
confidence of the people, with its SUBJ
sequent general business delapidation
simply because the German people do
not know much about it. If the deficit
is tremendous the German people never
read about it in the papers or hear 1t
discussed over the radio. The COM
plete authority of the state forbids 1t.
What happens when the treasury
needs additional funds? A concrete ex-
ample is available in the record Of
January Of this year. The government
merely helped itself to the resources
Of the savings banks and the insur-
ance companies. Both were required
to take over loans of 50OOOO.0OO reichs-
marks. Although the resources of these
institutions were hardly unlimited, the
money was spent Immediately and
soon ran the ordinary economic course
and was returned to the banks. With
the upturn in business the banks saw
ings deposits have actually increased
so far this year by more than the
amount Communicated from them by
the government. This looked so good
that Hitler ordered them to take over
another 100000. 900 last August.
Dark. evil things have been pre-
dicted for rhe Nazi new deal by the old
guard TO whom such practices are un-
imaginable. They are sure this sort Of
economic perpetual motion machine
apart or be slowed down by friction
sooner Of later. So far it has not. The
reichsmark has maintained its position,
has even appreciated from time 10
time. Internally German recovery has
progressed even beyond the hopes Of
many of the Nazi extremists.
Externally, the outlook is not nearly
so bad as might be expected from the
shameless manner in which Germany
has treated her foreign creditors. By
defaulting her debts Germany of course
ruined her credit abroad, and could no
longer buy without laying the money
on the line. In 1884 the revived Ger
man purchasing power began to be so
felt that a shortage of raw materials
for industry began TO be feared. Also.
prices began TO go up. This was bad
for export trade
Hitler Intervenes Again.
A few factories found IL necessary
TO reduce their output because of the
raw material shortage. but Hitler
nipped this in the bud by forbidding
factories TO let workmen 90 because of
shortage of materials.
Government assumed control Of the