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twice that much in 1940, as the number of men called to
 
the colors has greatly increased since the opening of
 
the war. A certain increase in expenditures for personnel
 
will also be noted, because the elimination of part of the
 
salary cuts, starting in July 1939, will not show up except
 
in a full budget year. With the further increase in the
 
Reloh debt, the expenditures for service on the debt will
 
increase. The interest on the Reich debt, which took the
 
sum of 1.95 billion RM in the fiscal year 1939, must call
 
for more than 3 billion RM in the fiscal year 1940. The 
 
expenditures for amortization amounted during past
 
two fiscal years to from 1.25 to 1.30 billion RM per annum.
 
In this connection it is to be noted, however, that only 
 
some 2/3 or 3/4 went for the amortization of loans, interest-
 
~bearlng Treasury bonds and other funded debts, while the
 
remainder was used for the payment of bond maturities
 
from the so-called advance financing (provision of work 
 
bonds and Mafowe bonds). It. remains to be seen whether
 
in the current fiscal year an amortization of such special 
 
obligation will take place also. The amortization 
 
of loans and Treasury bonds will be undertaken to about the
         z .
 
same extent as in the previous year.  In all, the expendi-
 
ture for service on debts ought to amount to from 3.9 to
 
4.3 billion RM.  The payments to States and Communes