Evening star., 1937-09-12
RUMORS GROWING
SCHACHT TOQU|T
Official Denial of Reports
Strangely Lacking
This Time.
BY Cable 10 The Star.

by Sapie 10 Inc 5taE.
BERLIN, September li.-For more
than year. rumors have started In
termittently that DIR. Hjalmar Schacht,
president of the Reichsbank and act
ing minister of economics, wanted to
resign. In recent days these rumors
have become so persistent that one
cannot afford to ignore them COM
pletely. although they are not based
on actual facts.
Or, If so, the facts are of a mega
tive character, in that there has been
no official denial Of the reports of
Schacht's resignation. whereas on pre-
vious occasions denials were freely
issued. The press department OF TIA
Reichsbank declared, when questionA
that "the report is not correct III
this form" Maybe it is partly due to
the questionable shape" of this in
formation that reports which origi-
nally referred only to Schacht's resig-
nation as minister of economics are
insistent now that he contemplates re-
signing the presidency of the Reichs-
bank as we'll.
If these reports prove true, Ger
mans may live to see fundamental
change In their country's financial
policy. Schacht, Germanys financial
wizard" clings to the gold standard
and Is in favor of curbing public ex-
penses. On the basis of these prin-
ciples, by obtaining a moratorium OF
German foreign debts and by apply
ing stringent foreign exchange restric-
tions and control. he has managed to
tide a practically bankrupt nation
over an extremely precarious position
since Hitler appointed him chief of
the German note bank in March.
1888, as successor TO DR.. Hans Luther.
later German Ambassador to WASH
ington.
Succeeded Schmitt in 1884.
In August, 1894, Schacht was made
acting economic minister In place
of Kurt Schmitt, who then went on
leave of absence because of failing
health" and never resumed ONCE.
Those we're the times when Schacht.
former Democrat, was regarded as
economic dictator in the National So
cialist regime, steering his course ,ln-
erringly and overruling the activities
OF certain Nazi elements opposed to
MS methods-such as, for instance
DR.. Robert Ley, head of the Nazi-
created German Labor Front" and
r. Walter Darre, Nazi minister of food
and agriculture.
Since then. however. Nazi radical in
huence has grown continually strong
er. Schacht, as champion of what
the Nazis consider liberalistic capi-
talsm, became the target of its
practices and counter activities from
that camp increased steadily until
April, 1886, when things came to a
climax and Hitler made Gen. Goer-
ing dictator in matters concerning
raw materials and foreign exchange.
As an immediate result of this meas
ure, Schacht offered his resignation
from his two positions. Hitler de-
clined his request and apparently
succeeded in convincing Schacht that
Goering's interference in his domain
from reducing Schacht to q func-
tionary, the sturdy general would
back him in his differences Of opinion
with the Nazi radicals.
Persons who know both Goering
and Schacht doubted from the very
f1rst whether this arrangement would
be permanent in view Of the impulsive
temperament of both men. That
Schacht himself had doubts In this
direction was indicated by the fact
that he did not avail himself Of the
provision of the Reichsbank law for
four-year prolongation of the presi-
Dental office on March 18, 1887, but
chose to prolong his term for one
year only. This means that Schacht's
term of Office as Reichsbank p-esi-
dent expires in March unless he
chooses to prolong it-or resign it
prematurely.
Much Friction Recently.
There has been, of course, much
friction in recent months between
Schacht and those who, opposing his
principles, advocate anti-capdtalistic
measures on the one hand and devalu-
alton OF German currency on the
other. The left Nan wing is In favor
Of the former, an influential group of
industrialists Of move in the hitter
direction.
tCopyriKht, 1877
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