MR. JUSTICE JACKSON: Now, taxes did not yield any sufficient revenue to discharge those bills, did they?
SCHACHT: Yes; I explained already yesterday that the risk which was taken in the mefo bills, which I have admitted from the very beginning, was not really a risk if a reasonable financial policy were followed; that is, if from 1938 on, further armament had not continued and additional foolish expenditures not been made, but if instead, the money accruing from taxes and bonds had been used for meeting the payment of the mefo bills.
MR. JUSTICE JACKSON: All I am asking you at the present moment, Dr. Schacht, is whether these bills could not have been paid out of the revenue from taxes.
SCHACHT: Surely. Yes.
MR. JUSTICE JACKSON: They could have?
SCHACHT: Of course, but that was the surprising thing, they were not repaid; the money was used to continue rearming. May I add something in order to give you further information?
MR. JUSTICE JACKSON: No, I am really not concerned with the financing; I am merely concerned with what kind of a mess you were in at the time you resigned.
SCHACHT: Yes.
MR. JUSTICE JACKSON: The mefo bills were due and could not be paid?
SCHACHT: Shortly.