7 SEPTEMBER 1934, Page 1

Germany's Economic Problems One must look elsewhere for clearer indications

of What is really happening in Germany. One illuminating incident is the declaration by Dr. Schacht that the annual sum of 2O0,000,000 marks for German propaganda abroad can no longer be continued. This is a blow for Dr. Goebbels, for whom the President of the Reichsbank is understood to cherish no ardent affection, and at the same time a revelation of the extent of German propa- ganda up to the present. Such a fund is, of course, of the nature of secret service money, and no one outside the Ministry of Propaganda knows how it was spent. It is safe to surmise that a substantial proportion went to Austria and the Saar. Dr. Schacht's decision is one of a number of measures which underline the stringency of the economic situation in Germany. Winter is getting near now, and the belief that an economic crisis cannot be staved off for more than six months is attributed to some of the most authoritative figures in German industry and finance. A Protestant church crisis may be forced at the same tune, for Reich Bishop Muller seems resolved to deal drastically with the opposition to him, notably on the part of the Bishops of Wurttemberg and Bavaria and the Churches they represent. Political power rests with Dr. Muller, but the dissident pastors still manifest an indomitable spirit.