Brinkmann's Brass Band

The more territory Adolf Hitler takes, the more his financial ministers have to worry about. Last week they announced a desperate "New Financial Plan" which illustrates why German economists have grey hair.

The plan was both complicated and risky. In its simplest terms it was intended to work as follows: The Government will issue fiat money (paper without gold or silver backing) to pay the Heinkel works, say, for airplanes. Next year when Heinkel comes to pay corporation taxes, it pays not in cash but in the fiat certificates. Meanwhile Heinkel may, if it wishes, use the certificates to help pay for purchases of Duralumin, rivets, engine parts. In transactions other than tax payments certificates may never exceed 40% of the purchase price, the rest to be paid in cash. What the plan really comes down to is using future taxes for present needs.

Inflationary and promissory plans like this have long distracted German financial experts (except Hjalmar Schacht, who controlled currency with a firm hand). Latest to crack under the strain is Reichsbank Vice President Dr. Rudolf Brinkmann, who lasted less than four weeks in office. One day just before he was sent to a sanatorium for a rest, Herr Brinkmann was feeling on top of the world. Carefully going through the personnel of the Reichsbank and picking out many of the most talented men, he called them together. He also summoned a brass band. "Play a march," he said to the band. They played a march. When they had finished, Herr Brinkmann turned to the puzzled economists and bankers with a beaming face, and said: "Well, boys, now you're fired."

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