Japanese exporters are organized in export cartels by the State. The State restricts competition among exporters and importers. The same thing is done in Germany and Italy. Moreover, it is not only in totalitarian States that payments for imported goods have become dependent on governmental decisions.

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A foreign visitor to the Berlin Stock Exchange would easily be deceived. There are announcements of daily quotations and price changes as though a free Stock Exchanged still existed, but nowhere would he find the former ‘public’— private buyers and sellers—as represented by independent brokers, bankers and ‘visitors.’

Of all businessmen the small shopkeeper is the one most under control and most at the mercy of the Party. The Party man, whose good will he must have, does not live in faraway Berlin; he lives right next door or just around the corner. This local Hitler gets a report every day on what is discussed in Heer Schultz’s bakery and Herr Schmidt’s butcher shop. He would regard these man as ‘enemies of the State’ if they complained too much. That would mean, at the very least, the cutting of their quota or scarce and hence highly desirable goods, and it might mean the loss of their business license.

Whereas in democratic countries the businessman may use his money to influence legislation and public opinion and thus operated as a source of power and corruption, in fascist countries he can exist only as the subject upon whom State power operates. The corruption in fascist arises inevitably from the reversal of the role of the capitalist and the State as wielders of economic power.

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Fritz Nonnenbruch, the financial editor of the Voelkischer Beobachter, states: ‘There exists no law which binds the State. The state can do what it regards as necessary, because it has the authority…. The next stage of National-Socialist economic policy consists of replacing capitalist laws by policy.’

The totalitarian State does not tolerate any ‘second government,’ any challenge to the power of the all-wise dictator. [As the Nazi party has stated] ‘Within the constitution of the Third Reich any position independent of the will of the Fuehrer no longer exists. The principle of separation of power is a thing of the past. Only the Party has a privileged position.’

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The slightest formal mistake was punishable with tremendous penalties. A fine of millions of marks was imposed for a single bookkeeping error. Obviously, the [Nazi] examination of the books was simply a pretext for partial expropriation of the private capitalist with a view to complete expropriation and seizure of the desired property later.

You cannot imagine how taxation has increased. Yet everyone is afraid to complain about it. The new State loans are nothing but confiscation of private property, because no one believes that the Government will ever make repayment, not even pay interest after the first few years.

While State representatives are busily engaged in investigating and interfering, our agents and salesmen are handicapped, because they never know whether or not a sale at a higher price will mean denunciation as a ‘profiteer’ or ‘saboteur’ followed by a prison sentence.