Hjalmar Schacht was the most powerful minister in Germany, an economic "wizard" with a destructive plan for growth.This post casts Schacht in a worse light than he deserves, although he was instrumental in getting the German economy into a position of strength. He opposed militarization, however, and that was his downfall.
From the Wikipedia article on Schacht:
In August 1934 Hitler appointed Schacht as Germany's Minister of Economics. Schacht supported public-works programs, most notably the construction of autobahnen (highways) to attempt to alleviate unemployment – policies which had been instituted in Germany by von Schleicher's government in late 1932, and had in turn influenced Roosevelt's policies. He also introduced the "New Plan", Germany's attempt to achieve economic "autarky", in September 1934. Germany had accrued a massive foreign currency deficit during the Great Depression, which continued into the early years of the Third Reich. Schacht negotiated several trade agreements with countries in South America and southeastern Europe, under which Germany would continue to receive raw materials, but would pay in Reichsmarks. This ensured that the deficit would not get any worse, while allowing the German government to deal with the gap which had already developed. Schacht also found an innovative solution to the problem of the government deficit by using mefo bills. He was appointed General Plenipotentiary for the War Economy in May 1934[9] and was awarded honorary membership in the NSDAP and the Golden Party Badge in January 1937.Subsequently, however, Schacht broke with the Nazis:
During the economic crisis of 1935–36, Schacht, together with the Price Commissioner Dr. Carl Friedrich Goerdeler, helped lead the "free-market" faction in the German government. They urged Hitler to reduce military spending, turn away from autarkic and protectionist policies, and reduce state control in the economy. Schacht and Goerdeler were opposed by a faction centering around Hermann Göring.[10]
Göring was appointed "Plenipotentiary for the Four Year Plan" in 1936, with broad powers that conflicted with Schacht's authority. Schacht objected to continued high military spending, which he believed would cause inflation, thus coming into conflict with Hitler and Göring.…
In November 1937 he resigned as Minister of Economics and General Plenipotentiary at Göring's request. He remained President of the Reichsbank until Hitler dismissed him in January 1939. After this Schacht held the empty title of Minister without Portfolio, and received the same salary, until he was fully dismissed in January 1943.…Salon
The banker behind Hitler’s shadow empire
Pierpaolo Barbieri
4 comments:
Schacht, the the enlightened, respectable bourgeois, wasn't a Nazi; he was a "liberal". Like many anti-semites of his time, he didn't feel comfortable with the indiscriminate murder of Jews. Some Jews, well, perhaps, if it's done selectively, with discretion; but not all Jews (at least, not his friends among the Jews).
Like Hindenburg, he secretly despised the Nazis and thought he could set them in power, manipulate and outmaneuver them. He, like Hindenburg, was in for a disappointment.
"The Nazis cannot rule, but I can rule through them." Hjalmar Schacht, 1931.
"It was Schacht, the facade of starched respectability, who in the early days provided the window dressing, the bait for the hesitant, and whose wizardry later made it possible for Hitler to finance the colossal rearmament program and to do it secretly."
"The most dangerous and reprehensible type of all opportunists, someone who would use a Hitler for his own ends, and then claim, after Hitler was defeated, to have been against him all the time. He was part of a movement that he knew was wrong, but was in it just because he saw it was winning."
Robert H. Jackson, American chief prosecutor at Nuremberg.
The guy was smart, he kept his hands clean enough to avoid being hanged. That was all.
This is the English version of his book, "The Magic of Money" for anyone interested.
https://docs.google.com/file/d/0B4CffaGCe1TpRlE3LWZVMkRjU0E/edit?pli=1
Right, Magpie. Schlacht was not too much different from the people at the top today other than he was more reticent about killing lots of people for money and power than people at the top today.
Thanks for the link to Schacht's book.
Schacht is of interest today since he anticipated Keynes and his success in Germany exerted an influence on FDR.
His role can be compared to that of Marriner Eccles in the US. Both were the heads of their respective central banks, Schacht preceding Eccles and later assuming ministerial power. Schacht and Eccles were extremely influential on Hitler and FDR, and both played an important economic role in their respective countries,
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