Hjalmar Schacht

“ GISEVIUS: We spoke about the matters and the somewhat peculiar situation which had brought us together. Schacht knew that I was very active in opposing the Gestapo, and I, for my part, was aware that Schacht was known for his utterances against the SS and the Gestapo on numberless occasions. Many middle class people in Germany placed their hopes in him as the only strong minister who could protect them if need be. ”

“ Schacht considered armaments necessary, because otherwise Germany would always be defenseless in the midst of armed nations. He was not thinking of definite attack from any side, but he said that in every country there was a militarist party which might come to power today or tomorrow, and a completely helpless Germany, surrounded by other nations, was unthinkable. It was even a danger to peace because it was an incentive to attack her one day. Finally, however, and principally Schacht saw in armaments the only means of revitalizing and starting up German economy as a whole. ”

“ Schacht, even in the years 1935-36, as may have been seen from numerous statements, had fallen into the role of a man, who in good faith had put his strength and ability at Hitler’s disposal but who now felt himself betrayed. ”

“ In addition to the foregoing direct evidence, the Tribunal is asked to take into consideration the fact that to such a man as Schacht the events of the period certainly bespoke Hitler’s intention. Schacht was a close collaborator of Hitler and a member of the Cabinet during the period of the Nazi agitation in Austria, the introduction of conscription, the march into the Rhineland, the overthrow of the Republican Government in Spain, the ultimate conquest of Austria, and the acquisition of the Sudetenland by a show of force. ”

“ Schacht today as one of the men who have done imperishable things for it and its development in accordance with directions from the Fuehrer and Reich Chancellor. The Defense Force owes it to Schacht’s skill and great ability that, in defiance of all currency difficulties, it, according to plan, has been able to grow up to its present strength from an army of 100,000 men. ”

“ It further concedes that Schacht, on occasion, gave aid and comfort to individual Jews who sought to escape the indignities generally inflicted upon Jews in Nazi Germany. Schacht’s attitude towards the Jews is exemplified by his speech at the German Eastern Fair, Koenigsberg, on 18 August 1935, wherein he said:
“The Jew must realize that their influence is gone for all times. We desire to keep our people and our culture pure and distinctive, just as the Jews have always demanded this of themselves since the time of the prophet Ezra. ”

“ Later in the same year Schacht publicly advocated the doctrine of Lebensraum for the German people. I quote again from Document EC-415, Exhibit Number USA-627, being an excerpt from Schacht’s speech at Frankfurt on 9 December 1936, on the second page, the last paragraph:
“Germany has too little living space for her population. She has made every effort, and certainly greater efforts than any other nation, to extract from her own existing small space whatever is necessary for the securing of her livelihood. ”

“ Then Schacht gave me his opinion. Germany needed rearmament in order to be equal to the other great powers in international politics. Only on such a basis could one negotiate. And Schacht said to me in his own ironical pointed way, “I want a big and strong Germany; and to achieve that, I would even ally myself with the devil.” In the course of this discussion, Schacht asked a few questions. First, he wanted to clear up the currency question, and secondly, he considered the colonial question important. ”

“ He acquired great power over industry as a result of the Nazi reorganization of German industry along military lines and in accordance with the so-called Leadership Principle. On this point I refer the Tribunal to the transcript for 23 November at Pages 287-290 (Volume II, Pages 227-228) ; and to the Reichsgesetzblatt 1934, Part I, Page 1194, of which the Tribunal is asked to take judicial notice.
Schacht also exercised broad powers as a member of the Reich Defense Council, which was secretly established on 4 April 1933 and the function of which was preparation for war. ”

“ It was always one question that was concerned: What could one say, so that such a letter should not be considered a provocation but would serve rather to draw the other non-Party ministers, and particularly the War Minister Blomberg, to Schacht’s side? That was just the difficulty, for how could such ministers as Blomberg, Neurath, or Schwerin-Krosigk, who were much more loyal to Hitler, be persuaded to join Schacht rather than to say that Schacht had once again provoked Hitler and Göring with his notoriously sharp tongue. ”

“ In May 1936, Schacht was attacked by some of the more radical elements of the Nazi Party because he had rejected their “partially irrational ideas” concerning armament financing. In repelling these attacks, Schacht emphasized at a secret meeting of the Ministers on 12 May 1936, that his program of financing armaments had meant “the commitment of the last reserve from the very beginning” ”

“ But Schacht’s contribution to Hitler before his accession to power did not consist merely of comforting him, giving advice, and expressing agreement with the Nazi program. He was an active participant in Hitler’s vigorous campaign to take over the German state. Thus, he openly lent the prestige of his name, which was widely known in banking, financial, and business circles, to Hitler’s cause (3729-PS) . He actively undertook to induce business leaders to support Hitler. ”

“ GISEVIUS: I did not understand how an intelligent man, and one who was as capable in economics as he was, could enter into such a close relationship with Hitler. I was all the more bewildered because, on the other hand, this man Schacht, from the very first day and in a thousand small ways resisted the Nazis, and the German public took pleasure in many sharp and humorous remarks which he made about the Nazis. Great was my bewilderment, until I actually met the man Schacht. ”

“ Schacht saw in him the most incapable and irresponsible of Hitler’s advisers. But already before that there were serious differences of opinion between Schacht and Hitler on foreign policy.
For instance, as regards Russia: Already from 1928-29 onwards Schacht had built up a large trade with Russia by long term credits which helped the economy of both countries. He has often been attacked on account of that, but he said: “I know what I am doing. I also know that the Russians will pay punctually and without bargaining. They have always done it.” ”

“ The Poles have never received the German offer. The newspapers are lying in order to lull the German people to sleep. The Poles have been attacked. Henderson did not even receive the offer, but only a short excerpt from the note was given to him verbally. If at any time at the outbreak of a war, the question of guilt was clear, then it is so in this case. That is a crime the like of which cannot be imagined.”
Then Schacht continued: “What madness to start a war with a military power like Poland, which is led by the best French general staff officers. Our armament is no good. ”

“ I swear that: I will be faithful, and obedient to the Fuehrer of the German Reich and the German people, Adolf Hitler, and will perform my duties conscientiously and selflessly. (The audience takes the pledge with uplifted hands) .
You have taken this pledge. A scoundrel he who breaks it. To our Fuehrer a triple ‘Sieg heil’.” (EC-297-A)
Schacht was likewise enthusiastic about the acquisition of the Sudetenland, and filled with pride over the contribution his credit policy as head of the Reichsbank had made thereto (EC-611) . ”

“ To the retort: “But we have an air force which can make itself felt,” Schacht said: “The air force does not decide the outcome of a war, the ground forces do. We have no heavy guns, no tanks; in three weeks the German armies in Poland will break down, and then think of the coalition which still faces us.”
Those were Schacht’s words and they made a deep impression on me; for me they are a definite and clear answer to the question which Dr. Dix put to me.
DR. DIX: Now, in the course of those years from 1933 to 1939 did Schacht ever speak to you about alleged or surmised war plans of Hitler? ”

“ Only then in the course of 1936 he began to realize more and more that Göring was not supporting him against the Party, but that Göring supported the radical elements against him, only then did Schacht’s attitude begin to change gradually, and he came to regard not only Himmler but also Göring as a great danger. For him Hitler was still the one man with whom one could create policy, provided the majority of the cabinet could succeed in bringing him over to the side of law and order. ”

“ Schacht told Lammers one day that if he did not receive the official notification of his release by a certain date, he would consider himself dismissed and inform the press accordingly. On that occasion scores of people implored Schacht not to resign. Throughout those years, whenever a man wanted to resign from his post, there was always the question whether his successor might not steer an even more radical course. Schacht was implored not to leave, lest radicalism should gain the upper hand in the economic field also. I only mention here the name of Ley, as head of the labor front. ”

“ At a ceremony in connection with the creation of the Economic Chamber for Pomerania in Stettin on 19 January 1936, Schacht denied that there was any disagreement between Hitler and his collaborators, and went on to say:
“In Germany there is fortunately only one policy and one economic policy, namely that of Adolf Hitler; to work with him and for his goals is the highest satisfaction for every member of the people’s community.” ”

“ DR. DIX: So you consider that when you realized the truth you did everything humanly possible to try and save humanity from the disaster of this war and bring it to an end, once it had started.
SCHACHT: I know of no one in Germany who would have done more in that respect than I did. I warned against excessive armament. I impeded, and if you like, sabotaged effective armament through my economic policy. I resigned from the Ministry of Economics against the will of Hitler; I publicly protested to Hitler against all the abuses of the Party ”

“ That must have been in 1932, a comparatively short time before the seizure of power. We immediately began to speak about political questions, about Hitler and Schacht’s relations to Hitler. I used that opportunity to warn Schacht seriously against Hitler and the Nazis. Schacht said to me: “Herr Vocke, one must give this man or these people a chance. If they do no good, they will disappear. They will be cleared out in the same way as their predecessors.”
I told Schacht: “Yes, but it may be that the harm done to the German people in the meantime will be so great that it can never be repaired.” ”

“ Hitler was hostile to the Soviet Union and this hostility is counterbalanced by open friendliness on the part of and in the person of the Minister of Economics. If I want to prove that Schacht was pioneer of a policy of understanding between nations, even in phases where Hitler carried on a peaceful battle, so to speak, with another country, such as the war of propaganda against the Soviet Union, then, in my opinion, this point is very important for Schacht’s fundamental attitude—on one side war and on the other understanding. ”

“ My department dealt with the Reich guarantees for deliveries to Russia, and thus I was in position to know that Schacht considered Hitler wrong in fighting Russia. Through much effort, he obtained Hitler’s permission to send extensive supplies, especially machines to Russia. Frequently I gained the impression that Herr Schacht favored these deliveries because, while instrumental in giving employment, they did not benefit rearmament. ”

“ In November 1938, at a time Schacht now asserts he was plotting against Hitler, he stated in a speech:
“Instead of a weak and vacillating Government, a single, purposeful, energetic personality is ruling today. That is the great miracle which has actually happened in Germany and which has had its effects in all fields of life and not least in that of economy and finance. There is no German financial miracle. There is only the miracle of the reawakening of German national consciousness and German discipline, and we owe this miracle to our Fuehrer Adolf Hitler.” ”

“ DR. DIX: You know that you are accused of being a participant in a conspiracy which had as its object an illegal violation of the peace. Did you at any time have secret discussions, or secret orders, or secret directives, which worked toward this objective?
SCHACHT: I may say that I myself never received any order or fulfilled any wish which might have been contrary to the conception of right. Never did Hitler request anything from me which he knew I would surely not carry out because it did not agree with my moral point of view. ”

“ I have referred to Document EC-297, Exhibit USA-632, in the course of this. That is the exhibit I have been using.
So you say that was to an impersonal head of state and not to Adolf Hitler?
SCHACHT: Yes. One obviously cannot take an oath to an idea. Therefore, one has to use a person. But I said yesterday that I did not take an oath to Herr Ebert or to Herr Hindenburg or to the Kaiser, but to the head of State as representative of the people. ”