1938-12-28 — Page 10

A WHISKY

PYE'

AT

SUNDOWN

A drink with

SPARKLE and ZEST

and TANG.

TING MI

by

WATSON'S

KAIPING COAL

HOME,

FACTORY

AND

BUNKERS

FOR ALL PURPOSES.

POWER

HOUSE,

TUGS &

LOCOS

THE KAILAN MINING ADMINISTRATION

Head Office:-TIENTSIN.

Agents:-DODWELL & CO., LTD., Hong Kong.

BAADE IN ENGLAND

10 BL

"NACET

REQD. TRADE MARK

MADE IN ENGLAND

You can depend upon Nacet Blades to give you many close, smooth shaves. They bring that uniformly high quality never before in low-priced blades-every blade in every packet having an edge that is keen and lasting. Nacet Blades fit three-peg razors.

"NACET" BLADES

BAGGAGE TRANSFERS

Telephone 27761

to Engage our Service,

Efficient and Secure

· CHINA PROVIDENT LOAN & MORTGAGE

CO., LTD.

#1

THE CHINA MAIL, DECEMBER 28, 1938

The China Mail

Ninety-Third Year of Publication 3A Wyndham Street, Hong Kong. Telephone 20022

London Office:

7, Garrick Street, London, W.C.2 Notice To Contributors.

Perhaps they have discovered the secret of keeping their work- ers constantly employed. After all, if you ́ ́are in a position to order any man to do any job; it is not very difficult to keep everybody busy.

་་

But even this system of com- pulsory activity contains within itself the seeds of possible trouble. There seem to me to be three dangers, in particular, that threaten the Nazi boom.

The first is the old choice be- All communications intended for

tween guns and butter. Nazi'

devoting publication should be addressed to Germany is to-day the Editor, and be accompanied by something like 15 per cent., per- haps an even higher proportion, the Writer's Name and Address, of its total national resources to

not necessarily for insertion but as 'r guarantee of good faith.

Subscription Rates.

3 Months

6 Months

One Year

H.K.$ 9.00 H.K.$18.00

H.K.$36.00

Postage Abroad Extra

the production of guns and other war material. And if you devote 15 per cent. of your resources to guns, you have just that amount less to devote to useful purposes. financial Danger No. 2 is a one. Germans, never forget the dreadful inflation they suffered fifteen years ago, and from which the same Dr. Schacht rescued

•

Hong Kong, Wednesday, Dec. 28, 1938. them. They are, therefore, of all

NAZI ECONOMICS

people. in the world, the most likely to get suddenly distrustful of the soundness of their rency.

cur-

3

Looking back over the past six.

Now the Nazi system depends years, we can all of us admit that completely on the people's hav- we have failed to take the Nazis ing absolute confidence in the as seriously as they deserved. financial policies of the Govern- We did not think that, we were ment. Every year, the German witnessing the beginning of Government is borrowing very something that was going to large sums of money (an equiva- threaten the lives of each one of lent figure for Great Britain us. When Germany started re- would be at least £500,000,000 arming, we did not think that in and perhaps £700,000,000 five years she would make her-year). This policy is safe only self strong enough to win two so long as there is a volume of wars without firing a shot.

genuine savings that can be bor- In the economic field, too, we rowed. Once the Government have failed to take the Nazis has to start creating money in seriously. Ever since Dr. Schacht order to have enough to bor- started exercising his matchless row, the new money will start ingenuity on the task of invent-competing with the old, prices ing new species of currency, ever will begin to rise, the people will since Nazi Germany started take fright, and the vicious defying all the rules of the eco spiral of inflation will start to nomic game, the pundits have, at revolve.

many.

regular intervals, expressed their If ever the Nazi Government opinion that it cannot possibly gets into that position, it will be last, that an economic collapse is forced, through the national just round the corner for Ger- terror of inflation, to cut down its borrowings and balance its and that will be the But the collapse has never Budget arrived. And now, in reaction end of rearmament.

The whole system therefore from our previous errors, we are

on the people being beginning to fall into the op depends posite mistake of imagining that willing not merely to save, but the Nazis have some secret. pro-to lend their savings to the Gov- cess which solves the economic ernment or (what comes to the same thing) to deposit them in problem once and for all.

There is nothing very mys-the banks who lend to the Gov- terious about the disappearance ernment.

Danger No. 3 is that Nazi Ger- of unemployment in Germany. Since 1933, something like 1,500,- many may not be able to export been enough to pay for the imported |000 men (at least) have enrolled in the Army, the Air raw materials it must have. Force, the Labour Corps, the this respect, 1938 has not been a Black Guards, the Brown Shirts good year for the Nazis. Aus- and the other Nazi organisations. tria and the Sudetenland

1

In

are

A much more fundamental probably, on balance, more hind- test of economic policy than un-rance than help so far as foreign employment can be derived from trade is concerned. Moreover, the the world recession has reduced Ger- the figures of employment figures of those who are doing man exports. That is why a useful work to enrich the nation. greater effort than ever before is And if you compare employment to be made in 1939 to force Ger- figures for 1937 with those for man goods on the world. And 1929 (the last previous com- that is why other countries, our are making parably prosperous year), you own pre-eminently, will find a considerably larger in-plans to resist the German drive. crease in Britain than in Ger- It is fully possible that none many. That is a significant and of these three dangers will in fact become operative in the very rarely appreciated fact.

Nevertheless, even though we immediate future. It is equally have no reason to fear compari-possible that all three will rise son of our economic achieve-up in combination to pose insolu- ments with those of the Nazis, ble problems to the Nazi regime. the Nazi economic system has There are no means of predicting manifestly not collapsed. What which alternative is the more is more, whereas the democracies likely. But the three figures have not had as good a year in which the economic rulers of 1988 as in 1937, Nazi Germany Germany must be watching most has continued to make new anxiously are the trend of food records in industrial-output supplies, the volume of savings Does this mean that the Nazis bank deposits and the course of have discovered the secret of export trade. And what they se

cannot be wholly reassuring. leternal boom?

་་