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disregard the recent increase in territory in the East, 
 
that is, if we determine the total national income only
 
for the territory of the Reich plus Austria and the
 
Sudetenland for 1940, we can perhaps count on an amount of
 
about 90 billion RM.
 
     Now if we wish to compare the public expenditures with
 
the figures for national income that have been mentioned,
 
attention is to be paid to the following peculiarity in
 
method according to the method of calculation of national
 
income that is employed with quite extensive agreement in
 
Germany, Great Britain and the Unites States, not all sums
 
which are devoted to public purposes are contained in the
 
national income. This is due to the idea that a certain
 
amount of governmental activity is absolutely necessary in 
 
order that a national economy may exist and operate at all,
 
and that income may be obtained. To that extent therefore 
 
the expenditures of the public administration are not the 
 
employment of income, but national expenses. In practice, 
 
this idea is applied to the calculation of German national 
 
income by not including in the total national income all 
 
public revenue secured, from taxes and fees. This is in-
 
cluded only in so far as it benefits, by its use, the 
 
 
domain of consumption, that is, it appears in the national 
 
economy, from the standpoint of the tax-payer, as a part
 
                                   of