fish, fruit and vegetables, but also fats, meat and meat products, poultry,   
egg yolks and the white of eggs. 'The completion of a "cold storage fishing   
factory ship" of 8,000 tons is imminent.'  It is claimed that 'a policy of   
planned storage has secured the food supply of the German people for years in  
                         advance.'"                         
 
                                                            
 
 
5. Inventories are being regulated. "It is the job of the wholesale trade  
to determine the stocks of their retail traderson the basis of their experience  
and, if necessary, by rationing according to previous consumption." Workers'   
dwellings are classed with new armament factories for materials. A permit is   
necessary to start a new business or to open one that has been closed for six  
months. New investments above $30,000 must be approved by Minister of Economics.  
New articles generally cannot be purchased without giving up old. Auto speeds   
are regulated to save tires. Many articles may not contain more than specified  
proportion of certain metals. Tin cans are being replaced by special steel cans.  
"Special 'economy engineers' have been appointed for each type of building to  
study and indicate to builders methods of saving steel after application has   
been made for a steel allocation. A special timber, 'bonus' is granted to firms  
                achieving savings of steel."                
 
                                                            
 
 
6. The emphasis is on bank and corporate liquidity. "The superabundance   
of money- overflowing to the Stock Exchanges - resulted in a sustained share   
boom. On this the Volkswirt makes the very interesting comment that to buy a   
share is the only way to change money indirectly for commodities (claims to   
capital goods), while the direct exchange has been made impossible by rationing  
and limitation of supply. The rise in shares reflects, therefore, the 'scarcity  
value' of commodities. The share boom is also due to a scarcity of supply-   
while there is a good supply of debentures. The Volkswirt criticizes the taxation  
advantages which induce firms to issue debentures in preference to shares and  
which have helped to produce a 'very undesirable discrepancy between debenture   
and share prices.' But even of debentures many quotations have become 'purely  
nominal'; 'the banks ration sales to their best and most faithful customers.'"  
                                                            
 
Experimenting on ways to increase savings. But sentiment against compulsory   
savings. The taxation aims to avoid depleting capital assets. "'This money   
represents the iron ration of firms.' A precedent has already been created by  
exempting from income tax the payment for assets handed over compulsorily to   
Government Departments or W firms. An extension to the proceeds from irreplaceable   
stocks 'would be welcomed by industry and particularly by trade with great   
                     relief and joy.'"                      
 
                                                            
 
III  
                                                            
 
June-September, 1941 Economic Journal  
                                                            
 
 
                            -4-