1. serious monetary strain because of investments. Providing money by taxing capital is impossible. Circulation of money can not be increased beyond a certain amount. Previous measures executed correctly and without danger to monetary value. Further increase seems precarious; matter of confidence. This point of view alone, however, not determining; possible that funds could be drawn from industrial profits.
2. special scruples, regarding the cases where prices for substitute [Ersatz] material are far beyond world-market prices, and therefore the products cannot compete (for example: tires made from Buna). Adjustment would further increase the excise tax on exports. Inflation cannot be chosen, as this would immediately upset the state's budget.
It must be attempted to produce those raw materials within Germany which are economically favorable; for other raw materials ready reserves for the case of mobilization [Mobfall]. Especially clear is the situation of flax; the complete covering of the requirement is possible; however not with hemp.
Certain raw materials for war must be stocked.
These viewpoints are recognized and followed by the Reich ministry for Economy. The execution is mainly dependent on the question of funds. Therefore, necessity to save in all fields, to make saved funds available for investment.
Prime Minister Goering: All measures are to be considered from the standpoint of an assured waging of war.
Ready reserves must ordinarily be accumulated already in peace in certain amounts.
It is to be attempted to use cheap imported raw materials for export purposes, expensive raw materials from within Germany. In cases where the price differences are small, probably creation of a settlement is preferred.
Minister Schacht: This settlement can be carried out either by compulsory mixing or by a price settlement by the state of the expensive raw materials.
In any case, price supervision must be introduced again.