Page 7, 30th June 1939

30th June 1939
Page 7
Page 7, 30th June 1939 — _HITLER TURNS BANKER

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6ni Our German Correspondent The " authoritarian principle was introduced into the German Reichsbank by the new law which abolishes the last remains of Dr.

Schacht's influence in the financial affairs of Nazi Germany.

Henceforth the printing of bank notes and the giving of credits will be unrestricted.

No board of directors and no committees will have to be consulted, but all decisions will be taken by

the Director of the Reichsbank alone, taking his orders from Herr Hitler personally.

There will be an advisory committee which may give its advice in cases where it is asked, but has no right of decision nor the right of veto.

Regarding gold and currency reserves the new law contains the following ingenious stipulation: " The Reichsbank will keep gold and currency reserves to an amount which, according to its own judgment, is necessary for the settlement of payments with foreign countries and for the maintenance of the value of the German currency."

No Gold Standard

The Viiikischer Beobachter comments: " This prescription corresponds to a principle which the Fuehrer has repeatedly stressed, namely that the stability of the German currency is not due to the quantity of hoarded gold and foreign currency, but to the fact that the money issued by the Reichsbank is kept in an adequate proportion to the exchange of goods produced by German labour."

Only Aryans to be Shareholders

The shareholders lose all influence on the Reichsbank's policy. Their only right will be to receive annual interest of five per cent. or less. Only Aryan Germans living in Germany, not including the Protectorate of Bohemia and Moravia, may be shareholders. All others will have to give up their shares. They receive in exchange German Treasury Bonds which provide an annual interest of 41 per cent.

Bad State?

It is difficult to obtain reliable Information about the finances of the Third Reich. The budget is never published. One is not even sure whether there is any budget which deserves the name. Higher taxation which was introduced recently and the system of Tax Bonds (Steuergutscheine) seem to Indicate that matters are rather bad.

The continuous change of personnel in the higher positions of the Reichsbank shows that the high officials who went through the school of Dr. Schacht feel very uncomfortable under the new conditions.

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