The Daily Alaska empire., 1935-10-16
Nazi Sleight-o of Hand.
(New York Times )


 It is said that Dr. Schacht Germanys economic dictator has made himself indispensable to thu Nazs because nobody else in Germany understand the labyrnthne network of controls that he has se up Certainly Nazi finance from the beginning ha. been shrouded in mystery. Not only the criti- csm and discussion that might help to throw ligh upon it suppressed but the German Government doe: not publish complete budgets complete state ments of its actual and contingent indebtedness These are the subjects of private calculations anc of rumors the amounts being spent in Ger many for rearmament.
 There has been statistical recovery in Germany of remarkable proportions since the advent of the Nazs to power. The most striking figure is that for unemployment which shows reduction from 100000 when Hitler first assumed control at the end of January, 1883, to a low point of 100000 ir August of this year Against the charge that these figures are manipulated to convert visible" into invisible unemployment, the official has been that other economic curves-those of industrial production, savings deposits, stocks and retail sales have also been turning upward. Sidney B. Fay, in the October issue of Current History, reports that Berlin gives the impression of experiencing great building boom.
 How has this change been brought about, and what does it in terms of real economic well fare? Paul Einzg, in article in the same maga- zine, attributes the improvement for the most part to the "unscruplous and unorthodox" economic and financial policy of the Hitler regime. The policy
 
 recovery at the expense of Germanys foreign cred itors. It unorthodox because to high degree it violated the principles of laissez-fare and those of sound" finance Apart from Soviet Russia writes MT. Einzg there other country in which aissez-faire has been discarded thoroughly as in Germany
 There is still reason to suppose, however, that Germany's recovery is statistical and temporary rather than real and permanent. More than any thing else it appears to be owing to public works schemes and particularly to enormous armament and other war preparation expenditures. They give employment and appear to promote prosperity while they going on, but they do not result in income reducing goods or in goods that improve the welfare of consumers. Their great cost brings cumuatively more serious problems. It has been estimated that the National Socialist Government has spent on it's work creation and rearmament programs a mini mum of 17,0OOOOOoOO marks raising the total public debt to figure not far from 40000 900 marks Even pr. Schacht has publicly confessed that We have financed from the future" and has hinted at day of reckoning. That the German lending public does not have great confidence in the future is shown by the fact that the Government has had to make forced loans, which the German industrial ists the savings banks and the insurance com panies have been obliged to take.
 Some observers point to the German situation as an example of how much better planning" is than "laissez-fare,p but as The London Economist has remarked, there is no evidence that any Ger man leader deliberately planned the course that German economy has taken. Rather series of day. to-day experiments have been mprovsed as occasion arose, "as desperate fnancier slaves off exposure and collapse by one ruse after another"