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Hjalmar Schacht (born Horace Greeley Hjalmar Schacht; 22 January 1877 – 3 June 1970, ) was a German economist, banker, centre-right politician, and co-founder in 1918 of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank under the
Weimar Republic The Weimar Republic (german: link=no, Weimarer Republik ), officially named the German Reich, was the government of Germany from 1918 to 1933, during which it was a Constitutional republic, constitutional federal republic for the first time in ...
. He was a fierce critic of his country's post-
World War I reparations Following the ratification of article 231 of the Treaty of Versailles at the conclusion of World War I, the Central Powers were made to give war reparations to the Allied Powers. Each of the defeated powers was required to make payments in eit ...
obligations. He served in
Adolf Hitler Adolf Hitler (; 20 April 188930 April 1945) was an Austrian-born German politician who was dictator of Germany from 1933 until his death in 1945. He rose to power as the leader of the Nazi Party, becoming the chancellor in 1933 and the ...
's government as President of the Central Bank (''Reichsbank'') 1933–1939 and as Minister of Economics (August 1934 – November 1937). While Schacht was for a time feted for his role in the German "
economic miracle Economic miracle is an informal economic term for a period of dramatic economic development that is entirely unexpected or unexpectedly strong. Economic miracles have occurred in the recent histories of a number of countries, often those undergoing ...
", he opposed elements of Hitler's policy of
German re-armament German rearmament (''Aufrüstung'', ) was a policy and practice of rearmament carried out in Germany during the interwar period (1918–1939), in violation of the Treaty of Versailles which required German disarmament after WWI to prevent Ger ...
insofar as it violated the
Treaty of Versailles The Treaty of Versailles (french: Traité de Versailles; german: Versailler Vertrag, ) was the most important of the peace treaties of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1 ...
and (in his view) disrupted the German economy. His views in this regard led Schacht to clash with Hitler and most notably with Hermann Göring. He resigned as President of the Reichsbank in January 1939. He remained as a Minister-without-portfolio, and received the same salary, until he left the government in January 1943. In 1944, Schacht was arrested by the
Gestapo The (), abbreviated Gestapo (; ), was the official secret police of Nazi Germany and in German-occupied Europe. The force was created by Hermann Göring in 1933 by combining the various political police agencies of Prussia into one orga ...
following the assassination attempt on Hitler on 20 July 1944 because he allegedly had contact with the assassins. Subsequently, he was interned in the concentration camps Ravensbrück and later at Flossenbürg. In the final days of the war, he was one of the 139 special and clan prisoners who were transported by the SS from
Dachau Dachau () was the first concentration camp built by Nazi Germany, opening on 22 March 1933. The camp was initially intended to intern Hitler's political opponents which consisted of: communists, social democrats, and other dissidents. It is lo ...
to
South Tyrol it, Provincia Autonoma di Bolzano – Alto Adige lld, Provinzia Autonoma de Balsan/Bulsan – Südtirol , settlement_type = Autonomous province , image_skyline = , image_alt ...
. This location is within the area named by Himmler the " Alpine Fortress", and it is speculated that the purpose of the prisoner transport was with the intent of holding hostages. They were freed in
Niederdorf, South Tyrol Niederdorf (; it, Villabassa ) is a municipality in South Tyrol in northern Italy, about northeast of Bolzano. Geography Niederdorf borders the following municipalities: Prags, Toblach, Welsberg-Taisten, and Gsies. History Coat-of-arms The emb ...
, in Italy, on 30 April 1945. Schacht was tried at Nuremberg, but was fully acquitted despite Soviet objections; later on, a German
denazification Denazification (german: link=yes, Entnazifizierung) was an Allied initiative to rid German and Austrian society, culture, press, economy, judiciary, and politics of the Nazi ideology following the Second World War. It was carried out by remov ...
tribunal sentenced him to eight years' hard labor, which was also overturned on appeal. In 1955, he founded a private banking house in
Düsseldorf Düsseldorf ( , , ; often in English sources; Low Franconian and Ripuarian: ''Düsseldörp'' ; archaic nl, Dusseldorp ) is the capital city of North Rhine-Westphalia, the most populous state of Germany. It is the second-largest city in ...
. He also advised developing countries on economic development.


Early life and career

Schacht was born in Tingleff,
Prussia Prussia, , Old Prussian: ''Prūsa'' or ''Prūsija'' was a German state on the southeast coast of the Baltic Sea. It formed the German Empire under Prussian rule when it united the German states in 1871. It was ''de facto'' dissolved by an e ...
,
German Empire The German Empire (),Herbert Tuttle wrote in September 1881 that the term "Reich" does not literally connote an empire as has been commonly assumed by English-speaking people. The term literally denotes an empire – particularly a hereditary ...
(now in
Denmark ) , song = ( en, "King Christian stood by the lofty mast") , song_type = National and royal anthem , image_map = EU-Denmark.svg , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of Denmark , establish ...
) to William Leonhard Ludwig Maximillian Schacht and Baroness Constanze Justine Sophie von Eggers, a native of Denmark. His parents, who had spent years in the United States, originally decided on the name Horace Greeley Schacht, in honor of the American journalist
Horace Greeley Horace Greeley (February 3, 1811 – November 29, 1872) was an American newspaper editor and publisher who was the founder and editor of the '' New-York Tribune''. Long active in politics, he served briefly as a congressman from New York ...
. However, they yielded to the insistence of the Schacht family grandmother, who firmly believed the child's given name should be Danish. After completing his ''
Abitur ''Abitur'' (), often shortened colloquially to ''Abi'', is a qualification granted at the end of secondary education in Germany. It is conferred on students who pass their final exams at the end of ISCED 3, usually after twelve or thirteen ye ...
'' at the Gelehrtenschule des Johanneums, Schacht studied medicine,
philology Philology () is the study of language in oral and written historical sources; it is the intersection of textual criticism, literary criticism, history, and linguistics (with especially strong ties to etymology). Philology is also defined as ...
,
political science Political science is the scientific study of politics. It is a social science dealing with systems of governance and power, and the analysis of political activities, political thought, political behavior, and associated constitutions and ...
, and
finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
at the Universities of
Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the third-largest city in Germany, after Berlin and ...
,
Leipzig Leipzig ( , ; Upper Saxon: ) is the most populous city in the German state of Saxony. Leipzig's population of 605,407 inhabitants (1.1 million in the larger urban zone) as of 2021 places the city as Germany's eighth most populous, as ...
,
Berlin Berlin ( , ) is the capital and largest city of Germany by both area and population. Its 3.7 million inhabitants make it the European Union's most populous city, according to population within city limits. One of Germany's sixteen constitu ...
,
Paris Paris () is the capital and most populous city of France, with an estimated population of 2,165,423 residents in 2019 in an area of more than 105 km² (41 sq mi), making it the 30th most densely populated city in the world in 2020. Si ...
and
Kiel Kiel () is the capital and most populous city in the northern German state of Schleswig-Holstein, with a population of 246,243 (2021). Kiel lies approximately north of Hamburg. Due to its geographic location in the southeast of the Jutland ...
before earning a doctorate at Kiel in 1899 – his thesis was on
mercantilism Mercantilism is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes imperialism, colonialism, tariffs and subsidies on traded goods to achieve that goal. The policy aims to reduce ...
.Hjalmar SCHACHT, biography
by Frédéric Clavert, author of a thesis on Schacht, ''Hjalmar Schacht, financier et diplomate 1930–1950'', Univ. of Strasbourg, France, 2006
He joined the
Dresdner Bank Dresdner Bank AG was a German bank and was based in Frankfurt. It was one of Germany's largest banking corporations and was acquired by competitor Commerzbank in May 2009. History 19th century The Dresdner Bank was established on 12 Novembe ...
in 1903. In 1905, while on a business trip to the United States with board members of the Dresdner Bank, Schacht met the famous American banker J. P. Morgan, as well as U.S. president
Theodore Roosevelt Theodore Roosevelt Jr. ( ; October 27, 1858 – January 6, 1919), often referred to as Teddy or by his initials, T. R., was an American politician, statesman, soldier, conservationist, naturalist, historian, and writer who served as the 26t ...
. He became deputy director of the Dresdner Bank from 1908 to 1915. He was then a board member of the for the next seven years, until 1922, and after its merger with the Darmstädter und Nationalbank ( Danatbank), a board member of the Danatbank. Schacht was a
freemason Freemasonry or Masonry refers to fraternal organisations that trace their origins to the local guilds of stonemasons that, from the end of the 13th century, regulated the qualifications of stonemasons and their interaction with authorities ...
, having joined the lodge ''Urania zur Unsterblichkeit'' in 1908. During the
First World War World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
, Schacht was assigned to the staff of General Karl von Lumm (1864–1930), the Banking Commissioner for German-occupied Belgium, to organize the financing of Germany's purchases in Belgium. He was summarily dismissed by General von Lumm when it was discovered that he had used his previous employer, the Dresdner Bank, to channel the note remittances for nearly 500 million francs of Belgian national bonds destined to pay for the requisitions.Peterson, Edward Norman. ''Hjalmar Schacht: For and Against Hitler''. Christopher Publishing House (Boston: 1954) pg. 24–31 After Schacht's dismissal from public service, he had another brief stint at the Dresdner Bank, and then various positions at other banks. In 1923, Schacht applied and was rejected for the position of head of the Reichsbank, largely as a result of his dismissal from Lumm's service. During the
German Revolution of 1918–1919 The German Revolution or November Revolution (german: Novemberrevolution) was a civil conflict in the German Empire at the end of the First World War that resulted in the replacement of the German federal constitutional monarchy with a d ...
Schacht became a ''Vernunftrepublikaner'' who had reservations over the parliamentary democratic system of the new
Weimar Republic The Weimar Republic (german: link=no, Weimarer Republik ), officially named the German Reich, was the government of Germany from 1918 to 1933, during which it was a Constitutional republic, constitutional federal republic for the first time in ...
but supported it anyways for pragmatic reasons. He helped found the
left-liberal Social liberalism (german: Sozialliberalismus, es, socioliberalismo, nl, Sociaalliberalisme), also known as new liberalism in the United Kingdom, modern liberalism, or simply liberalism in the contemporary United States, left-liberalism ...
German Democratic Party (DDP), which took a leading role in the governing Weimar Coalition. However, Schacht later became an ally of
Gustav Stresemann Gustav Ernst Stresemann (; 10 May 1878 – 3 October 1929) was a German statesman who served as chancellor in 1923 (for 102 days) and as foreign minister from 1923 to 1929, during the Weimar Republic. His most notable achievement was the reconci ...
, the leader of the center-right German People's Party (DVP).


Rise to president of the Reichsbank

Despite the blemish on his record from his service with von Lumm, in November 1923, Schacht became currency commissioner for the
Weimar Republic The Weimar Republic (german: link=no, Weimarer Republik ), officially named the German Reich, was the government of Germany from 1918 to 1933, during which it was a Constitutional republic, constitutional federal republic for the first time in ...
and participated in the introduction of the
Rentenmark The Rentenmark (; RM) was a currency issued on 15 October 1923 to stop the hyperinflation of 1922 and 1923 in Weimar Germany, after the previously used "paper" Mark had become almost worthless. It was subdivided into 100 ''Rentenpfennig'' an ...
, a new currency the value of which was based on a mortgage on all of the properties in Germany.Peterson, Edward Norman. ''Hjalmar Schacht: For and Against Hitler''. Christopher Publishing House (Boston: 1954) pg. 49–62 Germany entered into a brief period where it had two separate currencies: the
Reichsmark The (; sign: ℛℳ; abbreviation: RM) was the currency of Germany from 1924 until 20 June 1948 in West Germany, where it was replaced with the , and until 23 June 1948 in East Germany, where it was replaced by the East German mark. The Reich ...
managed by Rudolf Havenstein, President of the Reichsbank, and the newly created Rentenmark managed by Schacht. After his economic policies helped battle German hyperinflation and stabilize the German
Reichsmark The (; sign: ℛℳ; abbreviation: RM) was the currency of Germany from 1924 until 20 June 1948 in West Germany, where it was replaced with the , and until 23 June 1948 in East Germany, where it was replaced by the East German mark. The Reich ...
( Helferich Plan), Schacht was appointed president of the Reichsbank at the requests of president
Friedrich Ebert Friedrich Ebert (; 4 February 187128 February 1925) was a German politician of the Social Democratic Party of Germany (SPD) and the first president of Germany from 1919 until his death in office in 1925. Ebert was elected leader of the SPD on t ...
and Chancellor
Gustav Stresemann Gustav Ernst Stresemann (; 10 May 1878 – 3 October 1929) was a German statesman who served as chancellor in 1923 (for 102 days) and as foreign minister from 1923 to 1929, during the Weimar Republic. His most notable achievement was the reconci ...
. In 1926, Schacht provided funds for the formation of
IG Farben Interessengemeinschaft Farbenindustrie AG (), commonly known as IG Farben (German for 'IG Dyestuffs'), was a German chemical and pharmaceutical conglomerate. Formed in 1925 from a merger of six chemical companies— BASF, Bayer, Hoechst, Agf ...
. He collaborated with other prominent economists to form the 1929 Young Plan to modify the way that
war reparations War reparations are compensation payments made after a war by one side to the other. They are intended to cover damage or injury inflicted during a war. History Making one party pay a war indemnity is a common practice with a long history. ...
were paid after Germany's economy was destabilizing under the Dawes Plan. In December 1929, he caused the fall of the
Finance Minister A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio has a large variety of names around the world, such as "treasury", ...
Rudolf Hilferding by imposing upon the government his conditions for obtaining a loan. After modifications by Hermann Müller's government to the Young Plan during the Second Conference of The Hague (January 1930), he resigned as Reichsbank president on 7 March 1930. During 1930, Schacht campaigned against the war reparations requirement in the United States. Schacht became a friend of the Governor of the Bank of England,
Montagu Norman Montagu Collet Norman, 1st Baron Norman DSO PC (6 September 1871 – 4 February 1950) was an English banker, best known for his role as the Governor of the Bank of England from 1920 to 1944. Norman led the bank during the toughest period in m ...
, both men belonging to the
Anglo-German Fellowship The Anglo-German Fellowship was a membership organisation that existed from 1935 to 1939, and aimed to build up friendship between the United Kingdom and Germany. It was widely perceived as being allied to Nazism. Previous groups in Britain wi ...
and the
Bank for International Settlements The Bank for International Settlements (BIS) is an international financial institution owned by central banks that "fosters international monetary and financial cooperation and serves as a bank for central banks". The BIS carries out its work th ...
. Norman was so close to the Schacht family that he was godfather to one of Schacht's grandchildren .


Involvement with the NSDAP (Nazi Party) and government

By 1926, Schacht had left the shrinking DDP and began increasingly lending his support to the
Nazi Party The Nazi Party, officially the National Socialist German Workers' Party (german: Nationalsozialistische Deutsche Arbeiterpartei or NSDAP), was a far-right political party in Germany active between 1920 and 1945 that created and supported t ...
(NSDAP). He became disillusioned with Stresemann's policies after he believed that closer relations with the United States were failing to provide economic benefits, and after his efforts to negotiate a rapprochement with the United Kingdom by pegging the Reichsmark to the
pound sterling Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and ...
failed. Beginning in 1929 he increasingly criticized German foreign and financial policy since 1924 and demanded the restoration of Germany's former eastern territories and overseas colonies. Schacht became closer to the Nazis between 1930 and 1932. Though never a member of the NSDAP, Schacht helped to raise funds for the party after meeting with
Adolf Hitler Adolf Hitler (; 20 April 188930 April 1945) was an Austrian-born German politician who was dictator of Germany from 1933 until his death in 1945. He rose to power as the leader of the Nazi Party, becoming the chancellor in 1933 and the ...
. Close for a short time to Heinrich Brüning's government, Schacht shifted to the right by entering the
Harzburg Front The Harzburg Front (german: Harzburger Front) was a short-lived radical right-wing, anti-democratic political alliance in Weimar Germany, formed in 1931 as an attempt to present a unified opposition to the government of Chancellor Heinrich Br ...
in October 1931. Schacht's disillusionment with the existing Weimar government did not indicate a particular shift in his overall philosophy, but rather arose primarily out of two issues: * his objection to the inclusion of
Social Democratic Party The name Social Democratic Party or Social Democrats has been used by many political parties in various countries around the world. Such parties are most commonly aligned to social democracy as their political ideology. Active parties For ...
elements in the government, and the effect of their various construction and job-creation projects on public expenditures and borrowings (and the consequent undermining of the government's anti-inflation efforts);Simpson, Amos E. ''Hjalmar Schacht in Perspective''. Mouton Group (Paris: 1969) pg. 30–32 * his desire to see Germany retake its place on the international stage, and his recognition that "as the powers became more involved in their own economic problems in 1931 and 1932 ... a strong government based on a broad national movement could use the existing conditions to regain Germany's sovereignty and equality as a world power."Simpson, Amos E. ''Hjalmar Schacht in Perspective''. Mouton Group (Paris: 1969) pg. 179 Schacht believed that if the German government was ever to commence a wholesale reindustrialization and rearmament in spite of the restrictions imposed by Germany's treaty obligations, it would have to be during a period lacking clear international consensus among the
Great Powers A great power is a sovereign state that is recognized as having the ability and expertise to exert its influence on a global scale. Great powers characteristically possess military and economic strength, as well as diplomatic and soft power in ...
. After the November 1932 elections, in which the NSDAP saw its vote share fall by four percentage points, Schacht and Wilhelm Keppler organized a petition of industrial and financial leaders, the ''
Industrielleneingabe The ''Industrielleneingabe'' ( en, text=Industrial petition) was a petition signed by 19 representatives of industry, finance, and agriculture on November 19, 1932 that requested for German President Paul von Hindenburg to make Adolf Hitler the G ...
'' (Industrial petition), requesting president
Paul Von Hindenburg Paul Ludwig Hans Anton von Beneckendorff und von Hindenburg (; abbreviated ; 2 October 1847 – 2 August 1934) was a German field marshal and statesman who led the Imperial German Army during World War I and later became President of Germany fr ...
to appoint Adolf Hitler as
Chancellor Chancellor ( la, cancellarius) is a title of various official positions in the governments of many nations. The original chancellors were the of Roman courts of justice—ushers, who sat at the or lattice work screens of a basilica or law cou ...
. After Hitler took power in January 1933, Schacht won re-appointment as Reichsbank president on 17 March. In August 1934 Hitler appointed Schacht as Germany's '' Reichsminister'' of Economics. Schacht supported public-works programs, most notably the construction of ''
autobahn The (; German plural ) is the federal controlled-access highway system in Germany. The official German term is (abbreviated ''BAB''), which translates as 'federal motorway'. The literal meaning of the word is 'Federal Auto(mobile) Track' ...
en'' (highways) to attempt to alleviate unemployment – policies which had been instituted in Germany by Kurt von Schleicher's government in late 1932, and had in turn influenced Franklin D. Roosevelt's
New Deal The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939. Major federal programs agencies included the Civilian Con ...
in the United States. He also introduced the "New Plan", Germany's attempt to achieve economic "
autarky Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states, and their economic systems. Autarky as an ideal or method has been embraced by a wide range of political ideologies and movements, especiall ...
", in September 1934. Germany had accrued a massive foreign currency deficit during the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
, which continued into the early years of Nazi rule. Schacht negotiated several trade agreements with countries in
South America South America is a continent entirely in the Western Hemisphere and mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere at the northern tip of the continent. It can also be described as the sou ...
and
southeastern Europe Southeast Europe or Southeastern Europe (SEE) is a geographical subregion of Europe, consisting primarily of the Balkans. Sovereign states and territories that are included in the region are Albania, Bosnia and Herzegovina, Bulgaria, Croatia (a ...
, 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. Schacht also was made a member of the Academy for German Law. He was appointed General
Plenipotentiary A ''plenipotentiary'' (from the Latin ''plenus'' "full" and ''potens'' "powerful") is a diplomat who has full powers—authorization to sign a treaty or convention on behalf of his or her sovereign. When used as a noun more generally, the wor ...
for the War Economy in May 1935 by provision of the Reich Defense Law of 21 May 1935 and was awarded honorary membership in the NSDAP and the Golden Party Badge in January 1937. Schacht disagreed with what he called "unlawful activities" against Germany's Jewish minority and in August 1935 made a speech denouncing
Julius Streicher Julius Streicher (12 February 1885 – 16 October 1946) was a member of the Nazi Party, the '' Gauleiter'' (regional leader) of Franconia and a member of the '' Reichstag'', the national legislature. He was the founder and publisher of the vir ...
and Streicher's writing in the Nazi newspaper ''
Der Stürmer ''Der Stürmer'' (, literally "The Stormer / Attacker / Striker") was a weekly German tabloid-format newspaper published from 1923 to the end of the Second World War by Julius Streicher, the '' Gauleiter'' of Franconia, with brief suspensions ...
''. 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 on Hermann Göring. Göring was appointed "Plenipotentiary for the
Four Year Plan The Four Year Plan was a series of economic measures initiated by Adolf Hitler in Nazi Germany in 1936. Hitler placed Hermann Göring in charge of these measures, making him a Reich Plenipotentiary (Reichsbevollmächtigter) whose jurisdiction cut a ...
" on 18 October 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 1937 Schacht met with Chinese Finance Minister Dr.
H. H. Kung Kung Hsiang-hsi (; 11 September 1881 – 16 August 1967), often known as Dr. H. H. Kung, was a Chinese banker and politician in the early 20th century. He married Soong Ai-ling, the eldest of the three Soong sisters; the other two married Preside ...
. Schacht told him that "German-Chinese friendship stemmed in good part from the hard struggle of both for independence". Kung said, "China considers Germany its best friend ... I hope and wish that Germany will participate in supporting the further development of China, the opening up of its sources of raw materials, the upbuilding of its industries and means of transportation." In November 1937 he resigned as ''Reichsminister'' of Economics and General Plenipotentiary at both his and Göring's request. He had grown increasingly dissatisfied with Göring's near-total ignorance of economics, and was also concerned that Germany was coming close to bankruptcy. Hitler, however, knew that Schacht's departure would raise eyebrows outside Germany, and insisted that he remain in the cabinet as
minister without portfolio A minister without portfolio is either a government minister with no specific responsibilities or a minister who does not head a particular ministry. The sinecure is particularly common in countries ruled by coalition governments and a cabinet ...
. He remained President of the Reichsbank until Hitler dismissed him in January 1939. He remained as a ''Reichsminister'' without Portfolio, and received the same salary, until he was fully dismissed in January 1943. Following the Kristallnacht of November 1938, Schacht publicly declared his repugnance at the events, and suggested to Hitler that he should use other means if he wanted to be rid of the Jews. He put forward a plan in which Jewish property in Germany would be held in trust, and used as security for loans raised abroad, which would also be guaranteed by the German government. Funds would be made available for Jewish emigrants, in order to overcome the objections of countries that were hesitant to accept penniless Jews. Hitler accepted the suggestion, and authorised him to negotiate with his London contacts. Schacht, in his book ''The Magic of Money'' (1967), wrote that Montagu Norman and Lord Bearstead, a prominent Jew, had reacted favourably, but
Chaim Weizmann Chaim Azriel Weizmann ( he, חיים עזריאל ויצמן ', russian: Хаим Евзорович Вейцман, ''Khaim Evzorovich Veytsman''; 27 November 1874 – 9 November 1952) was a Russian-born biochemist, Zionist leader and Israel ...
, leading spokesman for the
British Zionist Federation The Zionist Federation of Great Britain and Ireland, also known as the British Zionist Federation or simply the Zionist Federation (ZF), is an umbrella organisation for the Zionist movement in the United Kingdom, representing more than 30 organis ...
, opposed the plan. A component of the plan was that emigrating Jews would have taken items such as machinery with them on leaving the country, as a means of boosting German exports. The similar
Haavara Agreement The Haavara Agreement () was an agreement between Nazi Germany and Zionist German Jews signed on 25 August 1933. The agreement was finalized after three months of talks by the Zionist Federation of Germany, the Anglo-Palestine Bank (under the ...
allowing German Jews to emigrate to
Mandatory Palestine Mandatory Palestine ( ar, فلسطين الانتدابية '; he, פָּלֶשְׂתִּינָה (א״י) ', where "E.Y." indicates ''’Eretz Yiśrā’ēl'', the Land of Israel) was a geopolitical entity established between 1920 and 1948 ...
under similar terms had been signed in 1933.


Resistance activities

Schacht was said to be in contact with the
German resistance to Nazism Many individuals and groups in Germany that were opposed to the Nazi regime engaged in active resistance, including attempts to remove Adolf Hitler from power by assassination or by overthrowing his established regime. German resistance was ...
as early as 1934, though at that time he still believed the Nazi regime would follow his policies. By 1938, he was disillusioned, and was an active participant in the plans for a coup d'état against Hitler if he started a war against
Czechoslovakia , rue, Чеськословеньско, , yi, טשעכאסלאוואקיי, , common_name = Czechoslovakia , life_span = 1918–19391945–1992 , p1 = Austria-Hungary , image_p1 ...
. Goerdeler, his colleague in 1935–36, was the civilian leader of resistance to Hitler. Schacht talked frequently with Hans Gisevius, another resistance figure; when resistance organizer
Theodor Strünck Theodor Strünck (7 April 1895, Pries - 9 April 1945, Flossenbürg concentration camp) was a German lawyer and resistance worker, involved in the 20 July plot. Life Theodor Strünck studied legal science, graduating at the University of Rostock ...
's house (a frequent meeting place) was bombed out, Schacht allowed Strünck and his wife to live in a villa he owned. However, Schacht had remained in the government and, after 1941, Schacht took no active part in any resistance. Still, at Schacht's
denazification Denazification (german: link=yes, Entnazifizierung) was an Allied initiative to rid German and Austrian society, culture, press, economy, judiciary, and politics of the Nazi ideology following the Second World War. It was carried out by remov ...
trial (subsequent to his acquittal at the
Nuremberg trials The Nuremberg trials were held by the Allies of World War II, Allies against representatives of the defeated Nazi Germany, for plotting and carrying out invasions of other countries, and other crimes, in World War II. Between 1939 and 1945 ...
) it was declared by a judge that "None of the civilians in the resistance did more or could have done more than Schacht actually did."Peterson, Edward Norman. ''Hjalmar Schacht: For and Against Hitler''. Christopher Publishing House (Boston: 1954) pg. 340 After the attempt on Hitler's life on 20 July 1944, Schacht was arrested on 23 July. He was sent to Ravensbrück, then to Flossenbürg, and finally to
Dachau Dachau () was the first concentration camp built by Nazi Germany, opening on 22 March 1933. The camp was initially intended to intern Hitler's political opponents which consisted of: communists, social democrats, and other dissidents. It is lo ...
. In late April 1945 he and about 140 other prominent inmates of Dachau were transferred to Tyrol by the SS, which left them there. They were liberated by the Fifth U.S. Army on 5 May 1945 in
Niederdorf, South Tyrol Niederdorf (; it, Villabassa ) is a municipality in South Tyrol in northern Italy, about northeast of Bolzano. Geography Niederdorf borders the following municipalities: Prags, Toblach, Welsberg-Taisten, and Gsies. History Coat-of-arms The emb ...
,
Dolomites The Dolomites ( it, Dolomiti ; Ladin: ''Dolomites''; german: Dolomiten ; vec, Dołomiti : fur, Dolomitis), also known as the Dolomite Mountains, Dolomite Alps or Dolomitic Alps, are a mountain range located in northeastern Italy. They form pa ...
,
Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
.


After the war

Schacht had supported Hitler's gaining power, and had been an important official of the Nazi regime. Thus he was arrested by the
Allies An alliance is a relationship among people, groups, or states that have joined together for mutual benefit or to achieve some common purpose, whether or not explicit agreement has been worked out among them. Members of an alliance are called ...
in 1945. He was put on trial at
Nuremberg Nuremberg ( ; german: link=no, Nürnberg ; in the local East Franconian dialect: ''Nämberch'' ) is the second-largest city of the German state of Bavaria after its capital Munich, and its 518,370 (2019) inhabitants make it the 14th-largest ...
for "conspiracy" and "crimes against peace" (planning and waging wars of aggression), but not war crimes or crimes against humanity. Schacht pleaded not guilty to these charges. He cited in his defense that he had lost all official power before the war even began, that he had been in contact with Resistance leaders like Hans Gisevius throughout the war, and that he had been arrested and imprisoned in a concentration camp himself. His defenders argued that he was just a patriot, trying to make the German economy strong. Furthermore, Schacht was not a member of the NSDAP and shared very little of their ideology. The British judges favored acquittal, while the
Soviet The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...
judges wanted to convict.Taylor, Telford. ''The Anatomy of the Nuremberg Trials: A Personal Memoir''. Alfred A. Knopf (New York: 1992) pg. 564–65 The British prevailed and Schacht was acquitted. However, at a West German
denazification Denazification (german: link=yes, Entnazifizierung) was an Allied initiative to rid German and Austrian society, culture, press, economy, judiciary, and politics of the Nazi ideology following the Second World War. It was carried out by remov ...
trial, Schacht was sentenced to eight years hard labor. He was freed on appeal in 1948. In 1950, Juan Yarur Lolas, the Palestinian-born founder of the Banco de Crédito e Inversiones and president of the Arab colony in
Santiago Santiago (, ; ), also known as Santiago de Chile, is the capital and largest city of Chile as well as one of the largest cities in the Americas. It is the center of Chile's most densely populated region, the Santiago Metropolitan Region, whos ...
, Chile, tried to hire Schacht as a "financial adviser" in conjunction with the German-Chilean community. However, the plan fell through when it became news. He served as a hired consultant for
Aristotle Onassis Aristotle Socrates Onassis (, ; el, Αριστοτέλης Ωνάσης, Aristotélis Onásis, ; 20 January 1906 – 15 March 1975), was a Greek-Argentinian shipping magnate who amassed the world's largest privately-owned shipping fleet and wa ...
, a Greek businessman, during the 1950s. He also advised the Indonesian government in 1951 following the invitation of economic minister Sumitro Djojohadikusumo. In 1953, Schacht started a bank, '' Deutsche Außenhandelsbank Schacht & Co.'', which he led until 1963. He also gave advice on economics and finance to heads of state of developing countries, in particular the Non-Aligned countries; however, some of his suggestions were opposed, one of which was in the Philippines by the former Bangko Sentral ng Pilipinas head
Miguel Cuaderno Miguel Cuaderno Sr. (December 12, 1890 – January 14, 1975) was the 17th Finance Secretary of the Philippines under Manuel Roxas and the first Governor of the Central Bank of the Philippines The Bangko Sentral ng Pilipinas (; commonly abbre ...
, who firmly rebuffed Schacht, stating that his monetary schemes were hardly appropriate for an economy needing capital investment in basic industry and infrastructure. Indirectly resulting from his founding of the bank, Schacht was the plaintiff in a foundational case in German law on the "general right of personality". A magazine published an article criticizing Schacht, containing several incorrect statements. Schacht first requested that the magazine publish a correction, and when the magazine refused, sued the publisher for violation of his personality rights. The district court found the publisher both civilly and criminally liable; on appeal, the appellate court reversed the criminal conviction, but found that the publisher had violated Schacht's general right of personality. Schacht died in
Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the third-largest city in Germany, after Berlin and ...
, West Germany, on 3 June 1970.


Works

Schacht wrote 26 books during his lifetime, of which at least four have been translated into English: * '' The Stabilisation of the Mark'' (1927)

* ''The End of Reparations'' (J. Cape & H. Smith; 1931) * ''Account Settled/Abrechnung mit Hitler'' (1949) after his acquittal at the Nuremberg Trials * ''Confessions of the Old Wizard'', (Boston: Houghton Mifflin, 1956)

* ''The Magic of Money'', (London: Oldbourne, 1967) * ''My First Seventy-Six Years'' (autobiography), (Allan Wingate, 1955
online


Miscellany

*
Gustave Gilbert Gustave Mark Gilbert (September 30, 1911 – February 6, 1977) was an American psychologist best known for his writings containing observations of high-ranking Nazi leaders during the Nuremberg trials. His 1950 book ''The Psychology of Dictat ...
, an American Army psychologist, examined the Nazi leaders who were tried at Nuremberg. He administered a German version of the Wechsler-Bellevue IQ test. Schacht scored 143, the highest among the leaders tested, after adjustment upwards to take account of his age. *When he stabilized the mark in 1923, Schacht's office was a former
charwoman A charwoman (also chargirl, charlady or char) is an old-fashioned occupational term, referring to a paid part-time worker who comes into a house or other building to clean it for a few hours of a day or week, as opposed to a maid, who usually ...
's cupboard. When his secretary, Fräulein Steffeck, was later asked about his work there. She described it as follows: ::What did he do? He sat on his chair and smoked in his little dark room which still smelled of old floor cloths. Did he read letters? No, he read no letters. Did he write letters? No, he wrote no letters. He telephoned a great deal – he telephoned in every direction and to every German or foreign place that had anything to do with money and foreign exchange as well as with the Reichsbank and the Finance Minister. And he smoked. We did not eat much during that time. We usually went home late, often by the last suburban train, travelling third class. Apart from that he did nothing.''When Money Dies: The Nightmare of the Weimar Collapse'' Chapter 13: Schacht


Portrayal in popular culture

Hjalmar Schacht has been portrayed by the following actors in film, television and theater productions; *
Felix Basch Felix Basch (1885–1944) was an American-Austrian actor, screenwriter and film director. He first acted in Vienna, and he was a producer and director for the German film production company U. F. A. Following the Nazi takeover of power in Germ ...
in the 1943 United States propaganda film '' Mission to Moscow'' * Władysław Hańcza in the 1971 Polish film ''Epilogue at Nurnberg'' * James Bradford in the 2000 Canadian/U.S. TV production ''Nuremberg'' * Stoyan Aleksiev in the 2006 British television docudrama '' Nuremberg: Nazis on Trial'' Hjalmar Schacht appears in the following works of fiction: * In Nancy Mitford's 'The Pursuit of Love'(1945) Sir Leicester Kroesig is 'taken for a drive in a Mercedes Benz by Doctor Schacht' * Southern Victory Series, an
alternate history Alternate history (also alternative history, althist, AH) is a genre of speculative fiction of stories in which one or more historical events occur and are resolved differently than in real life. As conjecture based upon historical fact, alte ...
epic by
Harry Turtledove Harry Norman Turtledove (born June 14, 1949) is an American author who is best known for his work in the genres of alternate history, historical fiction, fantasy, science fiction, and mystery fiction. He is a student of history and completed hi ...
. Schacht cameos in Volume 7: ''The Victorious Opposition'', as German Ambassador to the United States.


See also

*
Secret Meeting of 20 February 1933 The Secret Meeting of 20 February 1933 (german: Geheimtreffen vom 20. Februar 1933) was a secret meeting held by Adolf Hitler and 20 to 25 industrialists at the official residence of the President of the Reichstag Hermann Göring in Berlin. Its ...


Notes


References


Further reading

* Ahamed, Liaquat. ''Lords of Finance: The Bankers Who Broke the World'',
Penguin Books Penguin Books is a British publishing, publishing house. It was co-founded in 1935 by Allen Lane with his brothers Richard and John, as a line of the publishers The Bodley Head, only becoming a separate company the following year.Weitz, John. ''Hitler's Banker: Hjalmar Horace Greeley Schacht''. Boston: Little, Brown and Co. 1997. .


External links


Schacht prosecution notes from "Nazi Conspiracy & Aggression"




*
Interrogation of: Schacht, Hjalmar / Office of U. S. Chief of Counsel for the Prosecution of Axis Criminality / Interrogation Division Summary, Part 1Part 2.
{{DEFAULTSORT:Schacht, Hjalmar 1877 births 1970 deaths Anti-Masonry Antisemitism in Germany Burials at the Ostfriedhof (Munich) Central bankers Dachau concentration camp survivors Economy ministers of Germany Flossenbürg concentration camp survivors German anti-communists German bankers German Democratic Party politicians German economists German Lutherans German people of Danish descent German people of World War I German people of World War II Humboldt University of Berlin alumni Leipzig University alumni Ludwig Maximilian University of Munich alumni Members of the Academy for German Law Nazi Germany ministers People acquitted by the International Military Tribunal in Nuremberg People educated at the Gelehrtenschule des Johanneums People from Aabenraa Municipality People from the Province of Schleswig-Holstein Ravensbrück concentration camp survivors University of Kiel alumni University of Paris alumni