Dr. Schacht's Warning It has been obvious for some time
past that serious conflicts were going on beneath the uneasy surface of Nazi politics. The unwonted silence of General Goering and the Jew-baiting field-day in Berlin have both pointed to a temporary ascendancy of the party's Left Wing. The counter-offensive of the Right came with a most out- spoken speech by Dr. Schacht on Sunday. Dr. Schacht has never lacked courage, and it involved some risk for him, never regarded by the Nazis as one of themselves, to take sides as definitely as he did. He will have made many enemies for himself—there are reports of an open clash between him and Dr. Goebbels—and the tone of his utterance was so gloomy that it cannot have made many enthusiastic friends. The most surprising feature of the speech was the change it revealed in Dr. Schacht's attitude towards Germany's foreign creditors. He went out of his way to recall .that these creditors are not • Governments but " thousands of private persons who have lent us their savings," and though he promised no increase in debt payments he " greatly regretted that Germany is not able to meet her obligations to the full.?' The same solicitude for foreign opinion (can Dr. Schacht be cherishing the illusion that he could raise a loan ?) was doubtless responsible for a- fierce attack on the Jew- baiters—" verminous rascals," they were called—who interfere in economic policy without authority and in a disturbing manner.
