"HITLER'S 'NEW ORDER' IN THEORY AND PRACTICE"   
                                                            
 
       By Paul Einzig. Economic Journal. April, 1941.       
 
                                                            
 
 
             AN ANSWER TO THE FOREGOING ARTICLE             
 
                                                            
 
 
The author is a well-known financial writer for London newspapers, He   
takes the position that a German Europe is to be evaluated not on the plans   
announced but on the actual practices of Germany before and since the occupation   
of the European countries- that the practices are not due to the exigencies of  
   the moment but give a sampling of permanent practices.   
 
                                                            
 
 
1. That Germany is not undertaking a reconstruction of Europe but proposes  
an enslavement of Europe to be effected through currency and other controls   
applied, if necessary, through force.  That the objective will be to bring   
about a high standard of living in Germany but with all other standards so   
regulated that Germany will have a constant flow of cheap imports. The measure   
of the standard will be whatever is needed to keep foreign workmen producing   
what Germany needs. The center of power being Germany, all the foreign industries   
producing armament and all those in competition with Germany will be dismantled   
stry and agriculture everywhere must be subordinated to Germ
 
                                                            
 
 
2. This is now being done in part by forcible removal of the industries   
and in part by currency methods. The conquered countries all keep their own   
currencies. Germany buys at a fixed exchange rate which undervalues the mark   
and thus makes prices high in the countries but low in Germany. If the exchange  
tends to rise, the foreign currencies are devalued. This has happened in Rumania,  
Yugo-Slavia and Belgium. The proceeds of German purchases are, as before the   
war, frozen into German balances which can only be liquidated by payment for   
German exports. But the present policy of Germany is to import whatever will   
help the German standard of living and to export only what will aid the importing  
nations to complement the German economy. The balances thus frozen in Germany  
tend to increase and will probably be levied on to pay occupation costs, etc.  
At the same time, the Central Banks of the exporting countries are compelled   
to advance money to their own nationals in payment for the goods represented   
e frozen balances and hence steadily to inflate their curren
 
                                                            
 
 
3. The author cites many instances to prove that the methods now being   
employed are the "New Order" and that inevitably the present subject nations   
                   will be Slave nations.                   
 
                                                            
 
 
4. He suggests that a British victory should carry with it the obligation  
to compel Germany to earn her trade position in Europe by preventing the   
application of the methods above described.  He does not say how this is to  
                          be done.