Cameras for Copper

To the desk of overworked Dr. Hjalmar Schacht, president of the Reichsbank and Minister of Economics, there came last week a neatly typed memorandum signed by the presidents of a dozen large mortgage banks. The Nazi Government, they complained, scrabbling for every pfennig to pay for its fabulous armament program, has practically taken over their entire capital, making it impossible for them to issue mortgage loans, their chief source of income. If this practice is not stopped, some of the mortgage banks will be forced to close.

Because Adolf Hitler has long understood that he cannot do without miraculous Dr. Schacht, who alone seems to be capable of keeping German economy from falling apart, left-wing Nazis have given up their attempts to boot him out of office. Dr. Schacht in turn has learned not to annoy Nazi extremists unduly. He had the memorandum mimeographed, sent copies to Nazi bigwigs, other bankers, manufacturers, without comment other than a request for their personal opinions. That done Dr. Schacht stepped into a plane and hopped quickly to Brussels where he was elaborately welcomed by King Leopold, the Governor of the National Bank of Belgium and Premier Paul van Zeeland.

Dr. Schacht had a fine offer in his briefcase, but Premier van Zeeland, pleasantly aglow after his thumping electoral victory last fortnight over Belgium's No. 1 Fascist, Leon Degrelle (TIME, April 19), was in no mood to give anything away to the Fascists from across the Rhine. Germany is starving for raw materials; the Belgian Congo is one of the richest properties in Africa. Dr. Schacht's scheme was that Germany should buy $84,250,000 worth of Congo copper, tin and oil, pay for it within a specified time with thermometers, automobiles, safety razors, cameras, et al. One potent group in Belgium hailed this scheme with delight, for as special inducement Dr. Schacht was willing to have all the Congo imports carried in Belgian freighters. Catch to all this is that Belgian manufacturers are opposed to seeing their country flooded with German manufactured goods. Premier van Zeeland listened earnestly, promised nothing.

"Other nations are beginning to consider it worth their while to talk with us as equals, now that we are again armed and powerful," frankly said Hjalmar Schacht to Belgian reporters.

Just as frank on his return to Munich, Dr. Schacht admitted the reason for his offer: the Four-Year Plan (to make Germany self-sufficient) is doomed to failure.

"The raw material restrictions now have surpassed their peak," said he. "Our food situation has shown that we cannot become independent of foreign imports within a calculable time. . . . These decisions have been made in complete accord with General Goering, who heads the Four- Year Plan."

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