Even more significant were the changes which had been taking place in Nazi personnel The redoubtable Dr, Schacht vanished from the Governmental scene, and it was credibly rumoured that he swas en tirely out of sympathy with the Nazis' financial policy, 'There was the strange incident of the Cologne speech of Dr. Brinkmann, Dr. Schacht's successor, in which he declared to a private audience that "the Treasury is empty". an' incident which culminated in the "nervous breakdown" of. Dr, Brinkmann, and his removal toa "nursing home.
Even. before the war, indeed, there was ample evidence of strain and dimeulty. The tremendous increase in Government activity and the tremendous Treasury deficit were causing the more intelligent of the Nazi leaders great concern. It was an open secret that the leadership was hopelessly divided, and that energetic reforms were needed, The outbreak of war. made a bad matter worse. Already after a short spell of war new troubles are accumulating, and the signs of inflation become more and more plain.
The nature of the problem is evi ent. The Budget deficit is increasing fast, There are only four ways in which it can be-covered. The first is by increasing taxation. This has already been done. The income tax has been increased by 50 per cent,—with a maximum of 65 per cent, and the tax on wages has been substantially increased,
Text read from the printed page and cleaned; old type leaves the occasional error.