Dr. Schacht Gives Emphatic Assurance on Policy There seemed, he proceeded, no vulid reason why the dispute should not have been localized and a satisfactory settlement found, either through direct Sino-Japanese negotiations or the efforts of third Pow-
Essen, Sept. 30.
Dr. Hjalmar Schacht, Minister of Economic Affairs, speaking before the German Savings Banks Congress at Essen to-day, declared with emphasis. that the leading men of the Third Reich shared his view that under no circumstances could Germany resort either to inflation or devaluation. He also stressed the important of thrift for the success of the German economic policy, particularly for the financing of rearmament. The National Socialist government was conscious of its obligation to safeguard what the people had saved and entrusted to the Reich.
Dr. Schacht pointed out that the amount of legal tender now in circulation in Germany was only ten per cent. more than in 1929, whereas in Britain and France the' circulation hat increased by 33 per cent. and in the United States by as much as 42 per cent. The cost of living in other countries had increased in the last year more than in Germany. Dr. Schacht declared he had rejected the proposal that he should resort to devaluation to overcome the difficulties in Germany's foreign trade and in this he had the complete approval of the Fuehrer. He added he opposed the demand that the profits made by the prosperity brought about under National Socialism should be taxed by the state. many porterred the much more effective policy of directing these special profits earned by industry into in: vestments necessary for developing the synthetic raw stuff industries.
The speaker closed by emphasizing the success of the policy of consolidation pursued by the Reichs government.—Trans-Ocean. ers.
All efforts to secure a cessation of the conflict unhappily failed. The incident of July 7 at Lukouchiao was in itself insignificant. The action taken by Japan, Lord Cranborne asserted, had been out of all proportion to it. The conflict continued to be waged with ever increasing ferocity and lack of regard to the accepted standards of humanity.
Obviously, Lord Cranborne declared, it would do no good, indeed it would do harm, if the Committee gave the impression that it contemplated action which it was not able to carry out, "We must cut our cloth according to our measure," he said, "but there are definite lines on which progress can be made. Efforts for the cessation of hostilities must not be relaxed. The door must not be closed to any future action that may be possible."
Text read from the printed page and cleaned; old type leaves the occasional error.