"Damned Dangerous"

Berlin, by hailing Germany's No. 1 Jew-baiter as a hero last week (see above), forced into prominence the deep, half-hidden split between popular Nazi demagogs and Adolf Hitler's unpopular Big Business friends whose key man is Reichsbank President Dr. Hjalmar Schacht, Minister of Economics and charged by the Realmleader with finding money for everything from poor relief to export subsidies and pocket battleships.

With Berlin boiling about Jews, Dr. Schacht sped up to cool East Prussia, opened the Konigsberg Fair with a bold declaration that Nazi extremism is "damned dangerous!"

"O Lord, protect us from our friends," cried Dr. Schacht.

"These are the people who during the night heroically smear window panes, who placard every German buying from a Jewish store as a traitor to the nation, who declare every Freemason a scoundrel and who, in the justified battle against political pastors and chaplains, are now no longer able to distinguish between religion and the misuse of the pulpit."

Adolf Hitler's success thus far in regaining Germany's "national honor, freedom and armaments," Dr. Schacht called "stupendous," and most German businessmen would thoroughly agree. These gains, the Reichsbank President warned, are threatened by Nazis whose actions are "like sand in a machine."

"I shall make them responsible," threatened Dr. Schacht, "if the financial and economic completion of the task set up by the Realmleader is made impossible!"

The last German who dared to flay the Nazi lunatic fringe was Franz von Papen, and President Paul von Hindenburg sent an Army detachment to guard his life during the ensuing "blood purge" (TIME, July 9, 1934). His career broken, von Papen became Minister to Austria. No sooner had Dr. Schacht spoken this week than Nazi local satraps began blustering against "reactionaries"--i. e. Schacht. All parts of his speech embarrassing to Nazis were omitted from German newsorgans by order of Minister of Propaganda & Public Enlightenment Dr. Paul Josef Goebbels. Sensing the showdown which cannot be put off forever, Germany waited nervously for Adolf Hitler, who has been on a secretive vacation in Bavaria for nearly two months, to show up in Berlin, his fateful advent being daily expected.

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