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


entire import trade. 1t clamped the
lid down on unnecessary imports. 1t
based trade with foreign countries
upon exchange clearing and compensa-
ton agreements. Other nations, in or
der to sell goods in Germany, had to
import German goods. Doctor Schacht
put over the plan in a degree sufficient
for the country to weather the storm.
Germany is selling enough goods now
to meet her own requirements for raw
materials.
In another drastic government in
reference with business, home indus
tries were burdened with levy which
was to substitute the export industry.
Capital did not like this step very
well, either, and it was protested.
While ii is still early to predict the
result, 1t seems to have been working
in a manner fairly smooth so far.
1t will readily be seen that the IN
orthodox financing of all these govern
ment expenditures depended in large
measure upon the confidence Of the
German people in the nations fnan-
cial stability. Doctor Schacht ad-
mitted this himself In a speech at
Koenigsberg.
The circle OF money circulation must
not be broken. If the people were ever
gripped with fear and began boarding
money-if for any reason at all the
money failed to return TO the banks
whence II came-these banks would
be unable to lend the treasury any
more funds.
Two Alternatives.
In this case the government would
find two courses open. 1t could con-
tinue its financing of public works and
rearmament by initiating the currency,
or 1t could begin cutting down on them.
To cut down on public works would be
killing the goose that began laying
golden eggs. To curtail rearmament-
well. over Adolf Hitler's dead body!
There is little likelihood Of loss
of German confidence, however, the
observers of authority say. Not like
there is in France, where people are
never sure of the solidity Of the gov
eminent that happens to be in power
at the time. German people have every
confidence in the stability Of their gov
eminent. The censorship of the press
and radio makes it difficult for criti-
cisms of government actions and poll
cies to creep in.
There is one school Of thought which
holds that, with Germany spending so
much money and having so small a
gold reserve, devaluation of the reichs-
mark might result which would surely
wreck public confidence in government
finance. Doctor Schacht merely points
out that depreciation of the currency
in other countries has had exactly the
opposite effect. Indeed. he says, it
has served to curb panics in japan,
the United States. Great Britain, the
Union of South Africa and Belgium.
The German state socialism does not
aim at government ownership Of fac
tories. or of any of the means Of pro-
duction Rather it Is built around
policy Of private ownership with the
utmost In federal control Of industry
and business in the public interest.
The government doesn't own business
but when conditions approach state
Of panic the government viii certainly
step into the managerial post.
On the other hand, industry is far
Their than ever from controlling the
government or the state socialist party.
The movement, It is true, was financed
by industry in desperate attempt TO
avert communism or socialism. But
the monster got out Of the hands Of its
maker, and now the maker is its slave.
How will German recovery affect the
worlds peace?
Some say the more prosperous Ger
many becomes, the better able she
will be to speed up her armament until
she is strong enough TO attempt to re-
gain the power she had before the war.
Others contend that once she reaches
prosperity. she will hardly risk losing
it in the uncertainty Of war.
Needless TO say. the first premise Is
the ID IRE popular one.
G Western Newspaper Union.