Production and prices afford illuminating inferences and the chapters on primary and industrial production, with prices compared, teach much. Germany's controlled economy allows for simple price control, but it is disclosed that where prices have apparently shown hardly any rise, they have indeed increased, while there is a vast and even alarmingly serious deterioration of quality in goods, with buying power simply negatived either by direct rationing or almost confiscatory, taxation. The chapters on German economy in this phase make specially interesting read-fug in the light of the Allies' hopes to achieve their war aims largely through blockade.
This particular question of prices offers the problems of wages, labour, its demand and its residue in unemployment or displacement, Germany started her rearmament almost immediately on the advent to power of Herr Hitler and his Nazi regime, At frst the older system of "free economy" was bolstered by Dr. Hjalmar Schacht's systematic clearances. Very soon, even under Dr. Schacht's tenure of German economic control, the system deteriorated into the batter method. It so happened that German sales of manufactures and capital goods did not balance her purchases, and before long the customer States sought to combat that balance even at the cost of indebted. mess in Germany's favour, in order te maintain economic relations with former customers with free exchanges.
Text read from the printed page and cleaned; old type leaves the occasional error.