dtufail/nuremberg-trials-corpus huggingface dataset:
ruling factor in economic life. And this thesis is somewhat connected with general social and political observations, because it established the fact that the number of consumers is considerably larger than the number of producers, a fact which exercises a not inconsiderable social and political pressure." (EC-611).
Schacht's clearing agreements were particularly effective in Southeastern Europe, where agricultural exports had been considerably curtailed by competition from the more extensive and efficient overseas agriculture. The success of Schacht's ruthless use of Germany's bargaining position is indicated by the fact that by August 1937, there had been imported into Germany approximately one half billion Reichsmarks of goods in excess of the amount delivered under the clearing arrangements. In his letter to Goering dated 5 August 1937, Schacht stated:
"*   *   *   in clearing transactions with countries furnishing raw materials and food products we have bought in excess of the goods we were able to deliver to these countries (namely, Southeastern Europe and Turkey) roughly one half billion RM   *   *   *." (EC-497).
Thus, through this device, Schacht was able to extract huge loans from foreign countries which Germany could not have obtained through ordinary channels. The device as developed by Schacht was subsequently used during the war as a means of systematically exploiting the occupied countries of Western Europe.
* * *." (EC-497). Thus, through this device, Schacht was able to extract huge loans from foreign countries which Germany could not have obtained through ordinary channels. The device as developed by Schacht was subsequently used during the war as a means of systematically exploiting the occupied countries of Western Europe.
In addition to the clearing agreements, Schacht devised the system which came to be known as the "aski" accounts. This scheme likewise obviated the need for free currency (i.e. Reichsmarks freely convertible into foreign currency at the official rate-U. S. dollars, pounds sterling, etc). The system worked as follows: The German foreign exchange control administration would authorize imports of goods in specified quantities and categories on the condition that the foreign sellers agreed to accept payment in the form of Mark credits to accounts of a special type held in German banks. These accounts were called "aski", an abbreviation of Auslander Sonderkonten fuer Inlandszahlungen (foreigners' special accounts for inland payments). The so-called "aski" Marks in such an account could be used to purchase German goods only for export to the country of the holder of the account; they could not be converted into foreign currency at the official rates of exchange. Each group of "aski" accounts formed a separate "island of exchange" in which the German authorities, under Schacht's leadership, could apply their control as the country's bargaining position in each case seemed to warrant.
Schacht's ingenious devices were eminently successful. They admirably served the conspirators' need of obtaining materials which were necessary to create and maintain their war machine. On this point, Schacht has stated:
leadership, could apply their control as the country's bargaining position in each case seemed to warrant. Schacht's ingenious devices were eminently successful. They admirably served the conspirators' need of obtaining materials which were necessary to create and maintain their war machine. On this point, Schacht has stated:
"The success of the New Plan can be proved by means of a few figures. Calculated according to quantity, the import of finished products was throttled by 63 percent between 1934 and 1937. on the other hand, the import of ores was increased by 132 percent, of petroleum by 116, of grain by 102 and of rubber by 71 percent."
"These figures show how much the New Plan contributed to the execution of the armament program as well as to the securing of our food." (EC-611)
(3) Production Control. As an additional means of assuring that the conspirators' military needs would be met, Schacht adopted a host of controls over the productive mechanism of Germany, extending, inter alia, to the allocation of raw materials, regulation of productive capacity, use of abundant or synthetic substitutes in place of declining stocks of urgently needed materials, and the erection of new capacity for the production of essential commodities. The structure of regulation was built up out of thousands of decrees in which governmental agencies under Schacht's control issued permits, prohibitions, and instructions. These decrees were the outgrowth of carefully laid plans of the Ministry of Economics, of which Schacht was the head, concerning "economic preparation for the conduct of war", and in accordance with its view that "genuine positive economic mobilization" demanded that "exact instructions for every individual commercial undertaking are laid down by a central authority" (EC-128).
Ministry of Economics, of which Schacht was the head, concerning "economic preparation for the conduct of war", and in accordance with its view that "genuine positive economic mobilization" demanded that "exact instructions for every individual commercial undertaking are laid down by a central authority" (EC-128).
The plan to allocate raw materials was carried out through myriad "orders to produce" specifying that certain commodities must or must not be produced; "orders to process or use" prescribing the type and quantity of raw material which could or could not be used in the production of a given commodity; orders specifying that scarce raw materials could be used only as admixtures with more plentiful but inferior products; and other like measures. The precise details of these orders are unimportant for present purposes. Their significance lies in the fact that they were governed by a central purpose: preparation for war. In the above mentioned secret report issued in September 1934 by the Ministry of Economics it was said:
"Rules are to be initiated for the allotment of scarce raw materials etc; and their use and processing for other than war, or otherwise absolutely vital, goods is prohibited." (EC-128)
the military aspects of Schacht's plans to increase the production of scarce raw materials within Germany, and thereby reduce Germany's dependence upon foreign countries for materials needed in the rearmament program, are likewise revealed in the aforementioned report of the Ministry of Economics of September 1934:
"The investigations initiated by the Raw materials Commission and the measures introduced for enlarging our raw materials basis through home production as well as for furthering the production of substitute materials will directly benefit war economy preparations." (EC-128)
of Economics of September 1934: "The investigations initiated by the Raw materials Commission and the measures introduced for enlarging our raw materials basis through home production as well as for furthering the production of substitute materials will directly benefit war economy preparations." (EC-128)
(4) Plans and Preparations for Economic Controls During War. Pursuant to the unpublished Reich Defense Law secretly enacted on 21 May 1935, Schacht was appointed General Plenipotentiary for War Economy by Hitler. Under this law, Schacht was placed in complete charge of economic planning and preparation for war in peacetime, except for the direct production of armaments which was entrusted to the Ministry of War; and upon the outbreak of war, Schacht was to be the virtual economic dictator of Germany. His task was "to put all economic forces in the service of carrying on the war and to secure the life of the German people economically". In order to facilitate his task, the Ministers of Economy, Food and Agriculture, Labor, and Forestry were subordinated to him, and he was authorized "within his realm of responsibility, to issue legal regulations which may deviate from existing regulations". The necessity for absolute secrecy was stressed (2261-PS).
Schacht appointed Wohlthat as his deputy General Plenipotentiary for War Economy and organized a staff to carry out his directives. Schacht has admitted that he must accept full responsibility for the actions of these subordinates (3729-PS).
Before his resignation in late 1937, Schacht had worked out in amazing detail his plans and preparations for the German economy in the forthcoming war. Recognizing that wartime controls, to be effective, must be based on adequate information, Schacht had directed the completion of comprehensive surveys of 180,000 industrial plants in Germany and had compiled statistics concerning
in amazing detail his plans and preparations for the German economy in the forthcoming war. Recognizing that wartime controls, to be effective, must be based on adequate information, Schacht had directed the completion of comprehensive surveys of 180,000 industrial plants in Germany and had compiled statistics concerning
"*   *   *   the composition of the labor force as to sex, age, and training, the consumption of raw and auxiliary material, fuels, power, the productive capacity, the domestic and foreign trade as well as the supply of material and products in the beginning and at the end of the year." (EC-258).
On the basis of the statistical data thus collected, plans had been formulated by the end of 1937 wherein
"*   *   *   the needs of the Armed Forces and the civilian minimum needs in wartime are compared with the covering thereof by supplies and production." (EC-258)
The supervisory boards, which were briefly described above in connection with the import and export controls, were charged with "preparing their orders for the regulation of war contracts and fees", and were instructed to coordinate with various Reich manpower authorities to secure "their indispensable personnel" (EC-258).
Special measures were taken under Schacht's direction, to maintain "mobilization stocks" of coal and to assure their distribution in accordance with the wartime needs of armament factories and large consumers. Large "gasoline storage places" were constructed for use of the Wehrmacht and "gasoline stations and gasoline stores" were designated "for the first equipment of the troops in case of mobilization". Careful plans were also made for the allocation of power during war, and practice manoeuvers were held in order to determine "what measures have to be taken in case places of power generation should be eliminated" (EC-258).
stores" were designated "for the first equipment of the troops in case of mobilization". Careful plans were also made for the allocation of power during war, and practice manoeuvers were held in order to determine "what measures have to be taken in case places of power generation should be eliminated" (EC-258).
Evacuation plans for the removal of war materials, agricultural products, skilled workers, and animals from military zones were worked out by the Office of the Plenipotentiary for War Economy with characteristic thoroughness. Thus, "the supplies and skilled workers in the evacuation zones" were "registered, earmarked for transportation into certain salvage areas and registered with the Wehrkreiskommandos by the field offices of evacuation and salvaging plans" (EC-258).
Detailed plans for a system of rationing to become effective immediately upon mobilization had already been made by the end of 1937:
"The 80 million ration cards necessary for this purpose have already been printed and deposited with the Landrats, Chief Mayors, and corresponding authorities. The further distribution of the ration cards to the individual households is prepared by these authorities to take place within 24 hours after mobilization has been ordered." (EC-258).
Trusted persons whose reliability had been attested to by the Secret State Police were installed in important enterprises and charged with the execution of "measures which guarantee the maintenance of production of their enterprises in the event of mobilization". Their functions likewise extended, among other matters, to applying "for exemptions from military service" of "employees who are indispensable to their enterprise", and seeking immunity from requisition by the Wehrmacht of all motor trucks which were needed in the enterprises to which they were assigned (EC-258).
functions likewise extended, among other matters, to applying "for exemptions from military service" of "employees who are indispensable to their enterprise", and seeking immunity from requisition by the Wehrmacht of all motor trucks which were needed in the enterprises to which they were assigned (EC-258).
Pursuant to directives issued by Schacht as Plenipotentiary, labor authorities of the Government ascertained "the available amount of manpower, the wartime requirements of manpower and measures for the covering of the wartime needs". The wartime needs were to be met in part "by using reserve manpower (manpower theretofore used in non-essential enterprises, women, etc.)", and by making "every change of working place and every hiring of workers dependent upon the consent of the Labor Office" (EC-258).
The foregoing measures, it should be noted, are merely representative; they are not exhaustive. But enough appears to make it abundantly clear that Schacht's contribution, by any standard was an extraordinarily important one. Enough appears, moreover, to give particular emphasis to the following observations of the Honorable George S. Messersmith, United States Consul General in Berlin from 1930 to 1934:
"It was his [Schacht's] financial ability that enabled the Nazi regime in the early days to find the financial basis for the tremendous armament program and which made it possible to carry it through. If it had not been for his efforts, and this is not a personal observation of mine only but I believe was shared and is shared by every observer at the time, the Nazi regime would have been unable to maintain itself in power and to establish its control over Germany, much less to create the enormous war machine which was necessary for its objectives in Europe and later throughout the world.
mine only but I believe was shared and is shared by every observer at the time, the Nazi regime would have been unable to maintain itself in power and to establish its control over Germany, much less to create the enormous war machine which was necessary for its objectives in Europe and later throughout the world.
"The increased industrial activity in Germany incident to rearmament made great imports of raw materials necessary while at the same time exports were decreasing. Yet by Schacht's resourcefulness, his complete financial ruthlessness, and his absolute cynicism, Schacht was able to maintain and to establish the situation for the Nazis. Unquestionably without this complete lending of his capacities to the Nazi Government and all of its ambitions, it would have been impossible for Hitler and the Nazis to develop an Armed Force sufficient to permit Germany to launch an aggressive war." (EC-451)
D. SCHACHT PARTICIPATED IN THE NAZI CONSPIRACY PURPOSELY, WILLINGLY, AND WITH KNOWLEDGE OF ITS ILLEGAL AIMS AND METHODS.
(1) He was a faithful adherent of Hitler. It has already been demonstrated that even before Hitler's accession to power, Schacht aligned himself with Hitler and accepted his program. Schacht's utterances after Hitler had entrenched himself in power clearly show that he remained a faithful servant of Hitler despite the series of outrages committed under Hitler's direction.
At the opening of the Leipzig Fair on 4 March 1935, Schacht said:
"My so-called foreign friends don't render any services to me or the cause, which they don't want anyway, of course, but not even to themselves, if they try to construe a contrast between me and the allegedly impossible economic theories of National Socialism and represent me as a sort of guardian of economic reason. I assure you that all that I am doing and saying enjoys the absolute approval of the Fuehrer and that I would never do or say anything that does not have his approval. Not I but the Fuehrer is the guardian of economic reason." (EC-503).
me as a sort of guardian of economic reason. I assure you that all that I am doing and saying enjoys the absolute approval of the Fuehrer and that I would never do or say anything that does not have his approval. Not I but the Fuehrer is the guardian of economic reason." (EC-503).
On the occasion of the unveiling of Hitler's bust in the vestibule of the Reichsbank on 31 July 1935, Schacht said:
"Germany stays and falls with the success of the policy of Hitler." (EC-415)
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." (EC-502).
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"; and he announced that despite the attacks, he would continue to work because he
"*   *   *   stands with unswerving loyalty to the Fuehrer, because he fully recognizes the basic idea of National Socialism and because at the end, the disturbances, compared to the great task, can be considered irrelevant." (1301-PS).
So far as appears, Schacht did not become a member of the Nazi Party until January 1937. Franz Reuter, whose biography of Schacht was officially published in Germany in 1937, has stated that Schacht's becoming a regular Party member was only a question of secondary importance, and even part of a carefully planned policy, for,
far as appears, Schacht did not become a member of the Nazi Party until January 1937. Franz Reuter, whose biography of Schacht was officially published in Germany in 1937, has stated that Schacht's becoming a regular Party member was only a question of secondary importance, and even part of a carefully planned policy, for,
"By not doing so-at least until the final assertion and victory of the Party-he [Schacht] was able to assist it [the Party] much better than he would have been able to do had he become an official Party member." (EC-460)
On 30 January 1937, Hitler bestowed the Golden Party Badge upon Schacht, in recognition of his "special services to Party and State." Schacht accepted this hallmark of approval by the Fuehrer with effusive thanks and a pledge of continued support. In his speech of acceptance, Schacht stated:
"The presentation of the Golden Badge of the Movement is the highest honor the Third Reich has to offer. In honoring me as the head of the Reichsbank and the Reich and Prussian Ministry of Economics, it honors at the same time the two agencies which I am directing as well as the work of all those officials, employees and workers functioning in these two agencies."
"I think all my colleagues among the ranks of officials, employees, and workers for their faithfulness in the performance of their work, and appeal to all of them further to devote, with all their hearts, their entire strength to the Fuehrer and the Reich. the German future lies in the hands of our Fuehrer." (EC-500)
The depths of adulation were reached in a speech which Schacht delivered on the occasion of Hitler's 48th birthday in April 1937. Schacht spoke as one of Hitler's "closest collaborators," who had seen at first hand the difficulties which beset the Fuehrer in the relentless march toward his goals. In his speech, Schacht stated:
of adulation were reached in a speech which Schacht delivered on the occasion of Hitler's 48th birthday in April 1937. Schacht spoke as one of Hitler's "closest collaborators," who had seen at first hand the difficulties which beset the Fuehrer in the relentless march toward his goals. In his speech, Schacht stated:
"With the limitless passion of a burning heart and the infallible instinct of the born statesman, Adolf Hitler has won for himself the soul of the German people in a battle fought for 14 years with unswerving consequence."
"Only the closest collaborators of the Fuehrer know how difficult is the burden of this responsibility; how sorrowful are the hours during which decisions must be made which bear upon the well being and the fate of all of Germany." (EC-501)
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." (EC-611)
(2) Schacht favored the acquisition of additional territory for Germany-peacefully if possible, but by aggressive war, if necessary. Schacht had long been a German nationalist and expansionist. As early as 1927, he spoke against the Versailles Treaty:
"The Versailles Dictate cannot be an eternal document, because not only its economic, but also its spiritual and moral premises are wrong." (EC-415)
He strongly favored the acquisition by Germany of both colonial territory and contiguous territory in Europe. At the Paris conference on 16 April 1929, he said:
Treaty: "The Versailles Dictate cannot be an eternal document, because not only its economic, but also its spiritual and moral premises are wrong." (EC-415) He strongly favored the acquisition by Germany of both colonial territory and contiguous territory in Europe. At the Paris conference on 16 April 1929, he said:
"Germany can generally only pay if the corridor and Upper Silesia will be handed back to Germany from Polish possession, and if besides somewhere on the earth colonial territory will be made available to Germany." (3726-PS)
In a speech in Danzig in June 1935, Schacht ascribed the economic difficulties which confronted Danzig to "historical errors of the greatest extent which were beyond the control of the German people". He sought to comfort his listeners with the assurance that
"We Germans in the Reich today are looking with fullest confidence upon our comrades in the Danzig Free State, and maintain our people's fellowship with the interests, wishes and hopes of this territory which has unfortunately been separated from us." (EC-498)
In January 1936, Schacht again publicly spoke against the Versailles Treaty, and impliedly threatened war unless its terms were revised in Germany's favor. At that time, he stated:
"But the memory of war weighs undiminished upon the people's minds. That is because deeper than material wounds, moral wounds are smarting, inflicted by the socalled peace treaties. Material loss can be made up through renewed labor, but the moral wrong which has been inflicted upon the conquered peoples, in the peace dictates, leaves a burning scar on the people's conscience. The spirit of the Versailles has perpetuated the fury of war, and there will not be a true peace, progress or reconstruction until the world desists from this spirit. The German people will not tire of pronouncing this warning." (EC-415)