Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-19
Man Who Rules the Mark


Curzon belonged to the esoteric and
super-literary society of Souls" In
Berlin, Schacht joined the Wednesday
Society being elected an original men,
Der of that exclusive organization IN
1914. It's founder was Ernst Basser-
mann. former leader of the National
Liberal party, and among those who
discussed politics and economics at its
weekly meetings were Field Marshal
Moltke. Count George Wedel, the dip
lomatst: Hugo SHINES, DR.. Alfred
Hugenberg, former Krupp director.
newspaper magnate and now chief of
the Nationalist party; Walter Rattle
nau. Felix Deutsch, Privy Councillor
Schwsback and DR.. Ludwig Stein.
His Political Influence.
The Importance of the Wednesday
Society was greatly increased by the
revolution. Through it and through his
contributions to the Berlin newspapers
DR.. Schacht established very consid-
cradle political influence. Before the
war he had been a Liberal, and after
the revolution he became convinced
Republican. He joined the Democratic
party, the leadership of which was
vested in Count BernStortf. former Min
lister Carl Dernberg and Varl Won
Siemens of the Siemens Co. With
George Bernhard of the VoSsiche lei
tung he stood for what was known in
Germany as the Continental policy"
Rathenau. although Socialist was also
strong supporter of this policy, which
loOk ed to economic understanding with
France and joint development of
French and German industries. Schacht
also expressed approval of Count Rich
ard Coudenhove- Kalergi's scheme for
pan-European political union.
In 1923 he amalgamated the National
Bank of Berlin with the Darmstaedter
Bank and was drawn more actively into
financial controversies which were being
accumulated by the Ruhr occupation
and the debasement of the old paper
mark.
1t was at melting of the Wednes-
day Society in July. 1923, that the de-
clared himself emphatically against the
ruinous policy of deflation, and his at
titude. supported by other economists,
precipitated a crisis in the Cuno cab
met, which had been conducting a pro-
gram of passive resistance to the French
occupation of the Ruhr.
Fathered Gold Note.
1t was also at meeting of the society
that DR.. Schacht, on October II. 1923,
put forward his plan of a gold note
UdIlk rs Tie only means OF saving the
financial situation. DR.. Karl Helfferich.
secretary of the treasury under the
empire, favored the creation OF a Rem
ten Bank, with a currency based on
land values. Schacht opposed the lat
ter scheme, except as temporary
makeShift. He refused. however, to
accept the ministry of finance in the
StreSemann cabinet. and Stresemann's
last act as chancellor was to appoint
Schacht commissioner of currency. Civ
ing him practically dictatorial powers
in all currency matters.
The next day Havenstein, for twenty
years president of the Reichsbank, died.
Helfferich had been slated for the sue
cession. but Chancellor Marx, with the
approval of President Ebert. decided on
clean sweep and promoted Schacht to
be Reichsbank president. In that posi-
ticn he has constantly strengthened his
authority and influence. He contributed
materially to the preparation and sue
cess of the Dawes plan. He re-estab-
lished German credit and financed Ger
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