Evening star., 1937-10-31
HITLER At CRISIS
WITH 4-yEAR PLAN
Schacht Attempt to Resign
Forces Fuehrer to Make
Vital Decision.
BY SONIA TOMARA.

BERLIN, Oct. 30.-One year after
the beginning Of the four-year plan
which should liberate Germany from
imports of foreign raw materials,
Chancellor Adolf Hitler and his as
sistants in the economic field are faced
with a turning point in their line OF
action. The crisis in Germanys econ
omy has been precipitated by the state
ment DR.. Hjalmar Schacht made In
Berlin in the middle of the week to
the effect that he was through with the
ministry of economics and had given
his resignation to Der Fuehrer.
ASSOCIATED Press dispatches from
Berlin yesterday indicated that
Reichsfuehrer Hitler would not
accept DR.. Schacht's resignation
and would require him to continue
as minister for economics)
DIR. Schacht has indeed been through
since last August when he informed
Chancellor Hitler that he could not
be responsible any longer for a policy
of which he completely disapproved.
Hitler then did not accept his resigna-
ton. DR.. Schacht, however. has re-
fused since that time to go TO the
ministry of economics and has con-
fined his activity to the Reichsbank,
of which he is president.
Valued Schacht's Reputation.
Hitler, who disliked to make dras-
tic decisions in inner politics. wanted
to keep Schacht as nominal head of
economics because Of his reputation
abroad and let Col. Gen. Wilhelm Her
man Goering make the general staff
colonels 90 ahead with the four-year
plan which DR.. Schacht considers TO
be ruinous for Germany's economy.
The situation has now come to a
point where such cooperation is ex-
tremely difficult. At this stage OF
the four-year plan, when sums calcu-
lated to be about 5000, ,000,0 900 marks
have been sunk into new plants for
'Ersatz" goods that should replace for
eign imports, when the equipment OF
mines that can yield only a very poor
grade of iron at high cost has been
carried far ahead. it is hardly possible
for Hitler to go back to regime OF
more normal economy on which
Schacht insists.
Not only Col. Gen Goering but the
men organizing Germany's military
forces. meaning the whole power OF
the Reichswehr. which for Hitler is vir.
tually identical with Germany, are be-
hind the four-year plan, and what il
is doing at any cost. These men
probably realize that the four-year
plan lowers the standard of living OF
the German people, but the Nazi creed
demands sacrifices for the country's
good. The example of Russia during
the five-year plan there has shown
that the endurance of peoples can &c
far.
Weather Glasses Hit.
Germans are disciplined and indus
trious and their leaders know they
can bear much more before they are
through. But this time it is the
wealthier class Of Germans which i
bound to pay to make Germany self
sufficient. DR.. Schacht so far has de-
Tended private interests. From now
on all economic experts agree thess
interests more and more will be neg.
lected by the state Funds will b,
drawn from the big industries which
will have to contribute 10 Goering'!
enterprises-which Schacht is reported
to consider irrational and extrava'
/ CANT.
It should not be thought that tn,
four-year plan has been unsuccessful
On the contrary. reports from impair
tial sources indicate that the result
achieved over one year are very salts
factory. The Germans have don,
wonders with synthetic rubber, who's
cost first was four times the cost o
the natural product. Production
gradually being made cheaper and tn
quality Of artificial rubber for tires i
excellent 1t is believed to be som
10 per cent better than natural rub
ber. Synthetic oil is said to suppl
over Is per cent of the general nee,