Dr. Schacht on Tour The tour which Dr. Schacht, as
President of the Reichsbank, has been taking through Austria and the Balkan States, has greatly advanced Germany's economic penetration of South-Eastern Europe. Germany has Increased her imports from the Danubian and Balkan countries and refused payment except in blocked marks ; the frozen credits thus created can only be liquidated by an increase in Germany's exports to the countries concerned. Dr. Schacht, in Vienna, Belgrade, Athens, and Sofia, has been concerned to arrange for such an increase. Germany is prepared to make large purchases of agricultural produce from these countries, and pay in heavy manufactured goods, and Dr. Schacht envisages a closed economic bloc, dependent on Germany, operating by barter and not money exchanges ; investment will be under State direction ; the foundation of such a bloc, and the mark, " the gold currency without gold,- will be a model for the future of the world's commerce. Such a development will inevitably cut off the Balkan States from their old allies and customers, and the growing economic dependence of Jugoslavia on Germany may seriously weaken the Little Entente. It is important, and dangerous, that Germany's exports will take the form of armaments ; to Greece she has offered guns, aeroplanes and destroyers, and Dr. Schacht is hoping to secure contracts in Turkey for the refortffication of the Dardanelles.
