Act of State

Last week Adolf Hitler, announcing that he was about to perform an official act of State, with his entire Cabinet and attended by the Corps Diplomatique plus Army, Navy, Air and Storm Troop bigwigs, opened "The Largest Automobile Show in the World."

Twelve acres of gleaming motor vehicles --an intoxicating prospect for a one-time housepainter--stretched in broad expanse before Der Reichsfuehrer. Eight thousand German cars, cycle-cars, motorcycles, delivery wagons and trucks reduced to insignificance some 40 foreign cars shown by Italian, British, French, Czechoslovak, Belgian and Austrian firms. Glum U. S. dealers in Berlin showed nothing, protested, "Dr. Schacht has cut our quota so low that it isn't worth while. There are ten Germans who want to buy American cars for every one we can sell them." *

After taking the Nazi salute and drawing a deep breath Orator Hitler put all his simple heart into his loud Automobile Show Address: "I regard the motorization of Germany as the most important factor in our fight against un employment! . . . The German motor vehicle is not only the fastest but--we can say this pridefully--the best in the world. . . . Soon the Fatherland will be self-sufficient in motoring! I consider that the problem of synthetic fuel, like that of synthetic rubber, has been solved by German Science in principle. ... I point pridefully to our Party's record: four and a half times more new German cars licensed this January than in January 1933! Directly and indirectly 1,000,000 Germans are employed in motorization, if we count those engaged in building roads. . . ."

Since every prominent Nazi must have his thundering Mercedes, every Storm Troop leader must have at the least his shiny motorcycle, and since German taxpayers take care of the cost, Adolf Hitler rightly feels that he has hit on a wholly original and potent weapon for subjugating unemployment. But Der fuehrer's heart-- that Great Heart so much publicized in the Reich--yearns to give little cars to little men such as he once was. Facing the silk-hatted Corps Diplomatique almost defiantly, Herr Hitler fairly roared: "We are going to solve the problem of the cheap car BECAUSE WE MUST! I rejoice that one of our leading constructors has devised a car which will cost no more than a medium-priced motorcycle. Its consumption of fuel, Meine Herren, will be the least imaginable !"

After Great-Hearted Adolf had departed amid pomp, Nazi motor manufacturers admitted that nothing cheaper than an $800 car is made in Germany. This, representing an investment of 2,000 marks, remains definitely beyond the reach not only of the Fatherland's "little man," but also of the Fatherland's average workman who earns, according to German statisticians, about six marks per day or barely 2,000 marks per year.

Since the U. S. import duty on foreign cars was cut to 10%, Germany's swanker cars bought with blocked marks have begun to tempt U. S. socialites who have been buying their big Diesel yachts in Germany for years. Thus in 1929 the highest-priced Mercedes chassis cost $15,500 in Manhattan, costs but $8,000 today.

Despite Der Reichsfuehrer's confident Motor Show oration, Nazi economic policy, now managed by "Economic Dictator" Dr. Hjalmar Schacht stood revealed last week as bankrupt on the showing of Germany's latest official trade statistics. With Dr. Schacht puffing and straining to swell exports, they collapsed in January to a record low volume for the Century, excepting the War and inflation periods. With Dr. Schacht wrenching and squeezing to strangle imports, they swelled last month to the highest figure in three years. The Fatherland's trade deficit for January, 104,900,000 marks, was worst since 1928.

* But 40% of all made-in-Germany cars produced last year were turned out by General Motors' subsidiary Opel, while famed Mercedes- Daimler-Benz accounted for only 7 %.

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