describing the Jews as follows:
“A parasite, an enemy, an evil-doer, a disseminator of diseases
who must be destroyed in the interest of mankind.” (_M-36_).
This is no longer propaganda for the persecution of the Jews; this is
propaganda for the extermination of Jews, and for the murder not of one
Jew but of all Jews (see _2698-PS_).
A picture published in “_Der Stuermer_” in December 1938 shows a girl
being strangled by a man whose hands are around her neck. The shadow of
the man’s face, which is shown against the background, has quite obvious
Jewish features. The caption under that picture is as follows:
“Castration for Race Polluters. Only heavy penalties will
preserve our womenfolk from a tighter grip from ghastly Jewish
claws. The Jews are our misfortune.”
(3) _The Anti-Jewish demonstrations of November 1938._
While his anti-Jewish propaganda was becoming constantly fiercer,
Streicher took a leading part in the organized demonstrations against
the Jews which took place on 9 and 10 November 1938. In the autumn of
that year, on the occasion of a meeting of press representatives in
Nurnberg, Streicher organized the breaking-up of the Nurnberg
synagogues. It was announced that Streicher personally would set the
crane in motion with which the Jewish symbols would be torn down from
the synagogues (_1724-PS_). The event was described as follows:
“* * * the synagogue is being demolished! Julius Streicher
himself inaugurates the work by a speech lasting more than an
hour and a half. By his order—so to speak as a prelude of the
demolition—the tremendous Star of David came off the cupola.”
(_2711-PS_).
Streicher took active part in the November demonstrations of that year,
particularly in his _Gau_ of Franconia. The Nurnberg demonstrations were
reported as follows in the “_Fraenkische Tageszeitung_,” which was
Streicher’s paper, on 11 November:
“* * * In Nurnberg and Furth it resulted in demonstrations by
the crowd against the Jewish murders. These lasted until the
early hours of the morning. Far too long had one watched the
activities of the Jews in Germany.”
* * * * * *
“After midnight the excitement of the populace reached its peak
and a large crowd marched to the synagogues in Nurnberg and
Furth and burned these two Jewish buildings, where the murder of
Germans had been preached.
“The fire-brigades, which had been notified immediately, saw to
it that the fire was continued[_sic_] to the original outbreak.
The windows of the Jewish shopkeepers, who still had not given
up hope of selling their junk to the stupid Goims, were smashed.
Thanks to the disciplined behavior of the SA men and the police,
who had rushed to the scene, there was no plundering.” (_M-42_).
On 10 November, the day of the demonstrations, Streicher made a speech
stating in part as follows:
“From the cradle, the Jew is not being taught, like we are, such
texts as, ‘Thou shalt love thy neighbor as thyself,’ or ‘If you
are smitten on the left cheek, offer then your right one.’ No,
he is told: ‘With the non-Jew you can do whatever you like.’ He
is even taught that the slaughtering of a non-Jew is an act
pleasing to God. For 20 years we have been writing about this in
‘_Der Stuermer_’; for 20 years we have been preaching it
throughout the world and we have made millions recognize the
truth.”
* * * * * *
“The Jew slaughtered in one night 75,000 people; when he
emigrated to Egypt he killed all the first-born, i.e. a whole
future generation of Egyptians. What would have happened if the
Jew had succeeded in driving the nations into war against us,
and if we had lost the war? The Jew protected by foreign
bayonets, would have fallen on us and would have slaughtered and
murdered us. Never forget what history has taught us.” (_M-41_)
After the November 1938 demonstrations, irregularities occurred in the
Gau of Franconia in connection with the organized Aryanization of Jewish
property. Aryanization of Jewish property was regulated by the Nazi
State, which had decreed that the proceeds of the transfer of Jewish
properties to Aryans were to go to the State. In Streicher’s _Gau_ of
Franconia, however, a good deal of the proceeds never found their way as
far as the State. As a result Goering set up a commission to investigate
what had taken place. The report of that commission (_1757-PS_)
describes what had been taking place in Streicher’s _Gau_:
“* * * Following upon the November demonstrations the Deputy
Gauleiter, Holz, took up the Jewish questions. His reasons can
be given here in detail on the basis of his statement of the
25th of March, 1939:
“The 9th and 10th of November 1938.
“In the night of the 9th and 10th November and on the 10th of
November 1938, events took place throughout Germany which I
[Holz] considered to be the signal for a completely different
treatment of the Jewish question in Germany. Synagogues and
Jewish schools were burnt down and Jewish property was smashed
both in shops and in private houses. Besides this, a large
number of particular Jews were taken to concentration camps by
the police. Toward midday we discussed these events in the
Gauleiter’s house. All of us were of the opinion that we now
faced a completely new state of affairs on the Jewish question.
By the great action against the Jews, carried out in the night
and morning of the 10th of November, all guiding principles and
all laws on the subject had been made illusory. We were of the
opinion (particularly myself) that we should now act on our own
initiative in this respect. I proposed to the Gauleiter that in
view of the great existing lack of housing, the best thing would
be to put the Jews into a kind of internment camp. Then the
houses would become free in a twinkling, and the housing
shortage would be relieved, at least in part. Besides that, we
would have the Jews under control and supervision. I added ‘The
same thing happened to our prisoners of war and war internees.’
The Gauleiter said that this suggestion was for the time being
impossible to carry out. Thereupon I made a new proposal to him.
I said that I considered it unthinkable that, after the Jews had
had their property smashed, they should continue to be able to
own houses and land. I proposed that these houses and this land
ought to be taken away from them, and declared myself ready to
carry through such an action. I declared that by the
Aryanization of Jewish land and houses a large sum could accrue
to the Gau out of the proceeds. I named some million of marks. I
stated that, in my opinion, this Aryanization could be carried
out as legally as the Aryanization of shops. The Gauleiter’s
answer was something to this effect: ‘If you think you can carry
this out, do so. The sum gained will then be used to build a Gau
school.’”
* * * * * *
“The Aryanization was accomplished by the alienation of
properties, the surrender of claims, especially mortgage claims,
and reductions in buying price.
“The payment allowed the Jews was basically 10% of the nominal
value or nominal sum of the claim. As a justification for these
low prices, Holz claimed at the Berlin meeting of the 6th of
February 1939, that the Jews had mostly bought their property
during the inflation period for a tenth of its value. As has
been shown by investigating a large number of individual cases
selected at random, this claim is not true.” (_1757-PS_)
The second part of this report, which contains the findings of the
commission, reads in part as follows:
“* * * Gauleiter Streicher likes to beat people with a riding
whip but only if he is in the company of several persons
assisting him. Usually the beatings are carried out with
sadistic brutality.
“The best known case is that of Steinruck, whom he beat bloodily
in the prison cell, together with Deputy Gauleiter Holz and SA
Brigadier General Koenig. After returning from this scene to the
_Deutscher Hof_ he said: ‘Now I am relieved. I needed that
again!’ Later he also stated several times that he needed
another Steinruck case in order to ‘relieve’ himself.
“In August 1938, he beat Editor Burker at the District House
together with District Office Leader Schoeller and his Adjutant
Koenig.
“On the 2nd of December 1938 he asked to have three youthful
criminals (15 to 17 years old) who had been arrested for robbery
brought to the room of the director of the Criminal Police
Office in Nurnberg-Furth. Streicher, who was accompanied by his
son, Lothar, had the youths brought in singly and question them
about their sex life and in particular, through clear and
detailed questioning, he laid stress on determining whether and
since when they masturbated. * * *
“* * * The last one of these three boys he beat with his riding
whip, with blows on the head and on the rest of the body.”
(_1757-PS_)
A later passage shows the authority and power which Streicher held in
his Gau:
“According to reports of reliable witnesses Gauleiter Streicher
is in the habit of pointing out on the most varied occasions
that he alone gives orders in the district of Franconia. For
instance, at a meeting in the Colosseum in Nurnberg in 1935 he
said that nobody could remove him from office. In a meeting at
Herkules Hall, where he described how he had beaten Professor
Steinruck, he emphasized that he would not let himself be beaten
by anybody, not even by an Adolf Hitler.
“For, this also must be stated here, in Franconia the Gau acts
first and then orders the absolutely powerless authorities to
approve.” (_1757-PS_)
That report shows the kind of treatment and persecution which the Jews
were receiving in the Gau over which Streicher ruled. It further shows
the absolute authority with which Streicher acted in his district.
As a result either of that investigation or of some other matter,
Streicher was relieved of his position as Gauleiter in February 1940,
but he did not cease from propaganda or from control of his newspaper.
In an article written in “_Der Stuermer_,” on 4 November 1943, Streicher
declared:
“It is really the truth that the Jews, so to speak, have
disappeared from Europe and that the Jewish reservoir of the
East, from which the Jewish plague has for centuries beset the
peoples of Europe, has ceased to exist. However, the Fuehrer of
the German people at the beginning of the war prophesied what
has now come to pass.” (_1965-PS_).
That article, signed by Streicher, shows that he had knowledge of the
Jewish exterminations which were going on in the East. Streicher’s
article was written in November 1943. In April 1943 the Warsaw ghetto
was destroyed. Between April 1942 and April 1944 more than 1,700,000
Jews were killed in Auschwitz and Dachau. It seems clear from this
article that Streicher knew what was happening, perhaps not the details,
but the fact that Jews were being exterminated.
(4) _Perversion of Youth._
Streicher paid particular attention to the instruction and perversion of
the children and youth of Germany. He was not content with inciting the
German population. He started to poison the minds of the children at
school at the earliest possible date. He continually emphasized the need
for teaching children anti-semitism. In a speech as early as June 1925
Streicher said:
“I repeat, we demand the transformation of the school into a
national German institution of education. If we let German
children be taught by German teachers, then we shall have laid
the foundations for the national German school. This national
German school must teach racial doctrine.”
* * * * * *
“We demand, therefore, the introduction of racial doctrine into
the school.” (_M-30_)
The “_Fraenkische Tageszeitung_” of 19 March 1934 reports Streicher’s
address at a girls’ school at Preisslerstrasse:
“Then Julius Streicher spoke about his life and told them about
a girl who at one time went to his school and who fell for a Jew
and was finished for the rest of her life.” (_M-43_)
Every summer in Nurnberg a youth celebration was held. At this pagan
rite the youth of Nurnberg were rallied, organized, and incited,
encouraged by Streicher. Streicher’s speech to the Hitler Youth on the
“Holy Mountain” near Nurnberg on 22 June 1935 contained the following
statements:
“Boys and girls, look back to a little more than 10 years ago. A
great war—the World War—had whirled over the peoples of the
earth and had left in the end a heap of ruins. Only one people
remained victorious in this dreadful war, a people of whom
Christ said its father is the devil. That people had ruined the
German nation in body and soul. Then Adolf Hitler, unknown to
anybody, arose from among the people and became the voice which
called to a holy war and battle. He cried to the people for
everybody to take courage again and to rise and get a helping
hand to take the devil from the German people, so that the human
race might be free again from these people that have wandered
about the world for centuries and millenia, marked with the sign
of Cain.
“Boys and girls, even if they say that the Jews were once the
chosen people, do not believe it, but believe us when we say
that the Jews are not a chosen people. Because it cannot be that
a chosen people should act among the peoples as the Jews do
today.” (_M-1_)
A report of Streicher’s address to 2,000 children at Nurnberg at
Christmas-time, 1936, states:
“‘Do you know who the Devil is,’ he asked his breathlessly
listening audience. ‘The Jew, the Jew,’ resounded from a
thousand children’s voices.” (_M-44_)
Streicher was not content with writing and talking. He issued a book for
teachers, written by one Fink and published from the “_Der Stuermer_”
offices, called “The Jewish Question and School Instruction.” This book
emphasizes the necessity of anti-semitic teaching in schools, and
suggests ways in which the subject can be introduced and handled. The
preface, written by Streicher, reads in part as follows:
“The National Socialist state brought fundamental changes into
all spheres of life of the German people.
“It has also presented the German teacher with some new tasks.
The National Socialist state demands that its teachers instruct
German children in social questions. As far as the German people
is concerned the racial question is a Jewish question. Those who
want to teach the child all about the Jew must themselves have a
thorough knowledge of the subject.
“Those who take to heart all that has been written with such
feeling by Fritz Fink, who for many years has been greatly
concerned about the German people, will be grateful for the
creator of this outwardly insignificant publication.” (_M-46_).
The preface is signed by Julius Streicher, City of the Reich
Party Rallies, Nurnberg, in the year 1937.
The introduction to this book reads as follows:
“Racial and Jewish questions are the fundamental problems of the
National Socialist ideology. The solution of these problems will
secure the existence of National Socialism and with this the
existence of our nation for all time. The enormous significance
of the racial question is recognized almost without exception
today by all the German people. In order to attain this
recognition our people had to travel through a long road of
suffering.
“No one should be allowed to grow up in the midst of our people
without this knowledge of the monstrous character and
dangerousness of the Jew.” (_M-46_).
A later passage in the book contains this statement:
“One who has reached this stage of understanding will inevitably
remain an enemy of the Jews all his life and will instill this
hatred into his own children.” (_M-46_).
“_Der Stuermer_” also published some children’s books. Although
Streicher himself did not write the books, they were published from his
publishing business, and they are on the same line of everything else
published and issued from that business. Among these books was one
entitled “Don’t trust the Fox in the green meadow nor the Jew on his
oath.” It is a picture book for children. The pictures all depict Jews
in an offensive light. And opposite each picture there is a little
story. For instance, opposite one picture, which portrays an
unpleasant-looking Jewish butcher cutting up meat, there appears the
following comment:
“The Jewish butcher: he sells half refuse instead of meat. A
piece of meat lies on the floor; the cat claws another. This
doesn’t worry the Jew butcher since the meat increases in
weight. Besides one mustn’t forget he won’t have to eat it
himself.” (_M-32_).
The story opposite another picture reads as follows:
“Jesus Christ says ‘The Jew is a murderer through and through’.
And when Christ had to die the Lord didn’t know any other people
who would have tortured Him to death so he chose the Jews. That
is why the Jews pride themselves on being the chosen people.”
(_M-32_).
Other pictures in this book portray: a girl being led away by an
evil-appearing Jew; Streicher smiling benignly at a children’s party,
greeting the little children; children looking at copies of “_Der
Stuermer_” posted on a wall; Jewish children being taken away from an
Aryan school by an unpleasant-looking father, with all the Aryan
children shouting and dancing and enjoying the fun very much (_M-32_).
Another book, called “The Poisonous Fungus,” is very similar in
character and appearance, and likewise calculated to poison the minds of
readers. One of the pictures in this book shows a girl sitting in a
Jewish doctor’s waiting room. The story that goes with this picture is
not a very pleasant story, but it is only by adverting to these matters
that it becomes possible to believe the kind of education which German
children received from Streicher. The story reads as follows:
“Inge sits in the reception room of the Jew doctor. She has to
wait a long time. She looks through the journals which are on
the table. But she is much too nervous to read even a few
sentences. Again and again she remembers the talk with her
mother. And again and again her mind reflects on the warnings of
her leader of the League of German Girls: ‘A German must not
consult a Jew doctor. And particularly not a German girl. Many a
girl that went to a Jew doctor to be cured, found disease and
disgrace!’
“When Inge had entered the waiting room, she experienced an
extraordinary incident. From the doctor’s consulting room she
could hear the sound of crying. She heard the voice of a young
girl: ‘Doctor, doctor, leave me alone!’
“Then she heard the scornful laughing of a man. And then, all of
a sudden, it became absolutely silent. Inge had listened
breathlessly.
“‘What may be the meaning of all this?’ she asked herself and
her heart was pounding. And again she thought of the warning of
her leader in the League of German Girls.
“Inge was already waiting for an hour. Again she takes the
journals in an endeavor to read. Then the door opens. Inge looks
up. The Jew appears. She screams. In terror she drops the paper.
Horrified she jumps up. Her eyes stare into the face of the
Jewish doctor. And this face is the face of the devil. In the
middle of this devil’s face is a huge crooked nose. Behind the
spectacles two criminal eyes. And the thick lips are grinning, a
grinning that expresses: ‘Now I got you at last, you little
German girl!’
“And then the Jew approaches her. His fleshy fingers stretch out
after her. But now Inge has composed herself. Before the Jew can
grab hold of her, she smacks the fat face of the Jew doctor with
her hand. One jump to the door. Breathlessly Inge runs down the
stairs. Breathlessly she escapes the Jew house.” (_1778-PS_).
Another photograph shows youthful admirers standing around looking at
Streicher’s picture, with the following commentary:
“‘Without a solution of the Jewish question there will be no
salvation for mankind.’ That is what he shouted to us. All of us
could understand him. And when, at the end, he shouted ‘_Sieg
Heil_’ for the Fuehrer, we all acclaimed him with tremendous
enthusiasm. For two hours Streicher spoke at that occasion. To
us it appeared to have been but a few minutes.” (_1778-PS_).
The effect of all this propaganda is evident from the columns of “_Der
Stuermer_” itself. In April 1936 there was published a letter, which is
typical of many others that appear in other copies from children of all
ages. The third paragraph of this letter, signed by the boys and girls
of the National Socialist Youth Hostel at Grossmuellen, reads:
“* * * Today we saw a play on how the devil persuades the Jew to
shoot a conscientious National Socialist. In the course of the
play the Jew did it too. We all heard the shot. We would have
all liked to jump up and arrest the Jew. But then the policeman
came and after a short struggle took the Jew along. You can
imagine, dear _Stuermer_, that we heartily cheered the
policeman. In the whole play not one name was mentioned, but we
all knew that this play represented the murder by the Jew
Frankfurter. We were very sick when we went to bed that night.
None felt like talking to the others. This play made it clear to
us how the Jew sets to work.” (_M-25_).
C. _STREICHER’S USE OF HIS AUTHORITY AS GAULEITER IN THE SERVICE OF THE
CONSPIRACY._
Streicher’s authority as a Gauleiter was extensive. The Organization
Book of the NSDAP for 1938 describes the duties and authority of
Gauleiters as follows:
“The Gauleiter bears over-all responsibility for the Fuehrer for
the sector of sovereignty entrusted to him. The rights, duties
and jurisdiction of the Gauleiter result primarily from the
mission assigned by the Fuehrer and, apart from that, from
detailed direction.” (_1814-PS_).
Streicher’s association with the Fuehrer and other Nazi conspirators may
also be seen from the newspapers. On the occasion of Streicher’s 50th
birthday, Hitler paid a visit to Nurnberg to congratulate him. The
account of that meeting is published in the “_Voelkischer Beobachter_”
of 13 February 1934 as follows:
“Adolf Hitler spoke to his old comrades in battle and to his
followers in words which went straight to their hearts. By way
of introduction he remarked that it was a special pleasure to be
present for a short while in Nurnberg, the town of the National
Socialist community which had been steeled in battle, at this
day of honor of Julius Streicher, and to be within the circle of
the standard bearers of the National Socialist idea during many
years.
“Just as they, all of them, had during the years of oppression
unshakeably believed in the victory of the movement, so his
friend and comrade in the battle, Streicher, had stood
faithfully at his side at all times. It had been this
unshakeable belief that had moved mountains.
“For Streicher it would surely be a solemn thought, that this
50th anniversary meant not only the halfway point of a century,
but also of a thousand years of German history to him. He had in
Streicher a companion of whom he could say that here in Nurnberg
was a man who would never waver for a single second and who
would unflinchingly stand behind him in every situation.”
(_M-8_).
A letter from Himmler, published in “_Der Stuermer_” of April 1937,
declared:
“If in future years the history of the reawakening of the German
people is written, and if already the next generation will be
unable to understand that the German people was once friendly to
the Jews, it will be stated that Julius Streicher and his weekly
paper ‘_Der Stuermer_’ have contributed a great deal towards the
enlightenment regarding the enemy of humanity. “(Signed) For
the Reichsfuehrer SS, Himmler.” (_M-22_).
Finally, a letter from von Schirach, the Reich Youth Leader, published
in “_Der Stuermer_” of January 1938, had this to say:
“It is the historical merit of ‘_Der Stuermer_’ to have
enlightened the broad masses of our people in a popular way as
to the Jewish world danger. ‘_Der Stuermer_’ is right in
refusing to fulfill its task in the tone of the aesthetic
drawing room. Jewry has shown no regard for the German people.
We have, therefore, no cause to be considerate and to spare our
worst enemy. What we fail to do today our youngsters of tomorrow
will have to suffer for bitterly.” (_M-45_).
D. _CONCLUSION._
It may be that Streicher is less directly involved in the physical
commission of the crimes against Jews than some of his coconspirators.
The submission of the Prosecution is that his crime is no less worse for
that reason. No government in the world, before the Nazis came to power,
could have embarked upon and put into effect a policy of mass Jewish
extermination in the way in which they did, without having a people who
would back them and support them, and without having a large number of
people who were prepared to carry out the murder themselves. (See
Chapter XII on Persecution of the Jews.)
It was to the task of educating and poisoning the people with hate, and
of producing murderers, that Streicher set himself. For 25 years he
continued unrelentingly the perversion of the people and youth of
Germany. He went on and on, as he saw the results of his work bearing
fruit.
In the early days he was preaching persecution. As persecution took
place he preached extermination and annihilation and, as millions of
Jews were exterminated and annihilated, in the Ghettos of the East, he
cried out for more and more.
The crime of Streicher is that he made these crimes possible, which they
would never have been had it not been for him and for those like him.
Without Streicher and his propaganda, the Kaltenbrunners, the Himmlers,
the General Stroops would have had nobody to do their orders.
In its extent Streicher’s crime is probably greater and more
far-reaching than that of any of the other defendants. The misery which
they caused ceased with their capture. The effects of this man’s crime,
of the poison that he has put into the minds of millions of young boys
and girls goes on, for he concentrated upon the youth and childhood of
Germany. He leaves behind him a legacy of almost a whole people poisoned
with hate, sadism, and murder, and perverted by him. That people remain
a problem and perhaps a menace to the rest of civilization for
generations to come.
* * * * *
LEGAL REFERENCES AND LIST OF DOCUMENTS RELATING TO JULIUS STREICHER
│ │ │
Document │ Description │ Vol. │ Page
│ │ │
│Charter of the International Military │ │
│ Tribunal, Article 6. │ I │ 5
│International Military Tribunal, │ │
│ Indictment Number 1, Section IV (H);│ │
│ Appendix A. │ I │ 29, 66
│ ———— │ │
│Note: A single asterisk (*) before a │ │
│document indicates that the document │ │
│was received in evidence at the │ │
│Nurnberg trial. A double asterisk (**)│ │
│before a document number indicates │ │
│that the document was referred to │ │
│during the trial but was not formally │ │
│received in evidence, for the reason │ │
│given in parentheses following the │ │
│description of the document. The USA │ │
│series number, given in parentheses │ │
│following the description of the │ │
│document, is the official exhibit │ │
│number assigned by the court. │ │
│ ———— │ │
*1724-PS │Announcement in Press Conference, 4 │ │
│August 1938, of breaking up of │ │
│synagogue. (USA 266) │ IV │ 224
│ │ │
*1757-PS │Report of Goering’s Commissioners for │ │
│investigation of Aryanisations. (GB │ │
│175) │ IV │ 283
│ │ │
1778-PS │Book “The Poisonous Mushroom”, │ │
│published in Nurnberg 1938, concerning│ │
│Jews. (USA 257) │ IV │ 358
│ │ │
*1814-PS │The Organization of the NSDAP and its │ │
│affiliated associations, from │ │
│Organization book of the NSDAP, │ │
│editions of 1936, 1938, 1940 and 1943,│ │
│pp. 86-88. (USA 328) │ IV │ 411
│ │ │
*1965-PS │Article by Streicher, 4 November 1943,│ │
│published in Der Stuermer. (GB 176) │ IV │ 602
│ │ │
*2153-PS │Defeat the Enemy of the World, │ │
│published in National Socialist Party │ │
│Correspondence No. 358, 30 March 1933.│ │
│(GB 166) │ IV │ 760
│ │ │
*2154-PS │Streicher decrees, published in │ │
│National Socialist Party │ │
│Correspondence, No. 359, 31 March │ │
│1933. (GB 167) │ IV │ 760
│ │ │
*2156-PS │Announcement of Central Committee for │ │
│defense against Jewish horror and │ │
│boycott agitation, 29 March 1933, │ │
│published in National Socialist Party │ │
│Correspondence No. 357. (USA 263) │ IV │ 761
│ │ │
*2409-PS │Extracts from The Imperial House to │ │
│the Reich Chancellery by Dr. Joseph │ │
│Goebbels. (USA 262) │ V │ 83
│ │ │
2583-PS │Quotation from speech made by │ │
│Streicher, 31 October 1939. │ V │ 311
│ │ │
*2697-PS │Article: “The Chosen People of the │ │
│Criminals” from Der Stuermer, No. 2, │ │
│January 1935. (USA 259) │ V │ 372
│ │ │
*2698-PS │Article: “Two little Talmud Jews”, │ │
│from Der Stuermer, No. 50, December │ │
│1938. (USA 260) │ V │ 372
│ │ │
*2699-PS │Article on Ritual Murder, from Der │ │
│Stuermer, No. 14, April 1937. (USA │ │
│258) │ V │ 372
│ │ │
2700-PS │Article: “The Ritual Murder”, from Der│ │
│Stuermer, No. 28, July 1938. │ V │ 373
│ │ │
*2711-PS │Article: “Symbolic Action”, published │ │
│in Fraenkische Tageszeitung-Nurnberg, │ │
│11 August 1938. (USA 267) │ V │ 376
│ │ │
*2975-PS │Streicher’s affidavit, 19 November │ │
│1945, concerning positions held. (USA │ │
│9) │ V │ 681
│ │ │
*M-1 │Speech by Julius Streicher to Hitler │ │
│Youth on “Holy Mountain”, 22 June │ │
│1935. (GB 178) │ VII │ 1115
│ │ │
*M-2 │Speech by Julius Streicher, 10 May │ │
│1935. (GB 172) │ VIII │ 1
│ │ │
M-3 │Extract from Mein Kampf, p. 440. │ VIII │ 2
│ │ │
*M-4 │Streicher’s speech, 5 September 1937, │ │
│commemorating the opening of the │ │
│Wilhelm-Gustloff Bridge in Nurnberg. │ │
│(GB 171) │ VIII │ 3
│ │ │
M-5 │Report of press conference of 4 August│ │
│1938. │ VIII │ 5
│ │ │
*M-6 │Leading article by Julius Streicher │ │
│from Der Stuermer of September 1936. │ │
│(GB 170) │ VIII │ 6
│ │ │
M-7 │NSDAP Proclamation from Voelkischer │ │
│Beobachter, 29 March 1933, concerning │ │
│the boycott. │ VIII │ 7
│ │ │
*M-8 │Hitler’s visit to Nurnberg on │ │
│Streicher’s 50th birthday, from │ │
│Voelkischer Beobachter, 13 February │ │
│1935. (GB 182) │ VIII │ 8
│ │ │
*M-10 │Streicher’s letter to Archbishop of │ │
│Canterbury, from Special edition of │ │
│The Stuermer in May 1939. (GB 173) │ VIII │ 9
│ │ │
*M-11 │Streicher’s speech in Central Hall of │ │
│Coliseum in Nurnberg, 23 November │ │
│1922. (GB 165) │ VIII │ 10
│ │ │
M-12 │Streicher’s speech, 20 November 1924. │ │
│(GB 165) │ VIII │ 10
│ │ │
*M-13 │Streicher’s speech in Nurnberg, 3 │ │
│April 1925. (GB 165) │ VIII │ 11
│ │ │
*M-14 │Streicher’s speech in the Hercules │ │
│Hall in Nurnberg, 21 April 1932. (GB │ │
│165) │ VIII │ 11
│ │ │
*M-20 │Article from 1935 New Year’s issue of │ │
│“German People’s health from Blood and│ │
│Soil”. (GB 168) │ VIII │ 12
│ │ │
M-21 │Article: “Jewish Blood in a Priest’s │ │
│Robe”, from Der Stuermer, March 1936. │ VIII │ 12
│ │ │
M-22 │Letter from Himmler, 19 January 1937, │ │
│from Der Stuermer, April 1937. │ VIII │ 13
│ │ │
*M-25 │Letter from Der Stuermer, April 1936, │ │
│concerning the teachings to boys and │ │
│girls of Jewish question. (GB 170; USA│ │
│861) │ VIII │ 14
│ │ │
M-26 │Article: “He calls himself a party │ │
│member”, from Der Stuermer, March │ │
│1936. │ VIII │ 15
│ │ │
M-27 │Article: “Friends of the Jews on the │ │
│Moselle”, from Der Stuermer, March │ │
│1936. │ VIII │ 15
│ │ │
M-28 │Article: “She must stick to the Jews”,│ │
│from Der Stuermer, March 1936. │ VIII │ 16
│ │ │
*M-30 │Speech by Julius Streicher in Bavarian│ │
│Diet, 26 June 1925. (GB 165) │ VIII │ 16
│ │ │
M-31 │Editorial “The Approaching finale, The│ │
│Prophecy of the Fuehrer”, by Julius │ │
│Streicher, published in Der Stuermer. │ VIII │ 19
│ │ │
*M-32 │Extracts from book “Don’t trust a Fox │ │
│on a green meadow nor the Jew on his │ │
│oath”. (GB 181) │ VIII │ 20
│ │ │
M-33 │“100,000 demonstrate in Koenigsplatz │ │
│against Jewish incitements to │ │
│cruelty”, from Muenchener Beobachter, │ │
│1-2 April 1933. (GB 329) │ VIII │ 21
│ │ │
*M-34 │“Safeguard of German Blood and German │ │
│Honour”, from Voelkischer Beobachter, │ │
│6 October 1935. (GB 169) │ VIII │ 24
│ │ │
M-35 │Extract from Leading Article in Der │ │
│Stuermer, July 1938. │ VIII │ 24
│ │ │
M-36 │Extract from Leading Article in Der │ │
│Stuermer, September 1938. │ VIII │ 25
│ │ │
M-39 │Extract from Leading Article in Der │ │
│Stuermer, January 1938. │ VIII │ 26
│ │ │
M-40 │Headlines of Articles in Stuermer │ │
│Special Issue No. 8, January 1938. │ VIII │ 26
│ │ │
M-41 │Speech by Streicher, 10 November 1938.│ VIII │ 26
│ │ │
*M-42 │Account of November 1938 │ │
│demonstrations in Nurnberg and Fuerth.│ │
│(GB 174) │ VIII │ 28
│ │ │
*M-43 │Streicher’s address to young girls of │ │
│vocational training centre, 19 March │ │
│1934, from Fraenkische Tageszeitung. │ │
│(GB 177) │ VIII │ 28
│ │ │
*M-44 │Report of Streicher’s address to 2,000│ │
│children at Nurnberg at Christmas │ │
│celebrations, from Fraenkische │ │
│Tageszeitung, 22 December 1936. (GB │ │
│179) │ VIII │ 29
│ │ │
*M-45 │Letter by von Schirach, published in │ │
│Der Stuermer, January 1938. (USA 871) │ VIII │ 30
│ │ │
*M-46 │Extracts from book: “Jewish Question │ │
│and School Instruction”, published in │ │
│Der Stuermer, 1937. (GB 180) │ VIII │ 30
11. WALTER FUNK
A. _FUNK ACTIVELY PROMOTED THE CONSPIRATORS’ ACCESSION TO POWER._
A recital of Funk’s positions and activities is set forth in a statement
made by him (_3533-PS_). Although Funk signed this statement, he
inserted several reservations and denials with respect to certain
positions and activities. Funk’s submissions in this connection, which
are indicated in his statement (_3533-PS_) should be evaluated in the
light of the statements set forth in the collection of relevant excerpts
from German publications (_3563-PS_).
An examination of these excerpts will reveal that the German
publications directly contradict every contention which Funk has made
with respect to his holding the positions and carrying on the activities
listed in his statement (_3533-PS_). For example, in his comment
concerning item (_b_) of his statement Funk denies that he was Hitler’s
Personal Economic Adviser during the 1930’s. On the other hand, there
are four German publications, each of which states unequivocally that
Funk _was_ Hitler’s Personal Economic Adviser (_3563-PS_).
As is indicated by these documents, Funk, soon after he joined the Nazi
Party in 1931, began to hold important positions in the Party and soon
qualified as one of the Nazi inner circle. Thus, he promptly became not
only Hitler’s Personal Economic Adviser, but also Chief of the Economic
Division of the Central Nazi Party Directorate and Chairman of the
Party’s Committee on Economic Policy (_3533-PS_). In these capacities,
he advanced the Party’s drive for mass support by drafting its economic
slogans. In 1932, for example, he wrote a pamphlet entitled “Economic
Reconstruction Program of the NSDAP”, which, after its approval by
Hitler, became the Party’s official pronouncement on economic matters
(_3505-PS_).
Funk also served as the liaison man between the Nazi Party and the large
industrialists, from whom he obtained financial and political support on
Hitler’s behalf (_3505-PS_; _2828-PS_). Thus, for example, he was
present at the meeting of approximately 25 leading industrialists held
in Berlin on 20 February 1933 (_2828-PS_). In the course of this
meeting, which was arranged by Goering and attended by Funk, among
others, and which was designed to obtain the industrialists’ financial
and political support for the Nazi program, Hitler and Goering announced
some of the fundamental Nazi objectives: the destruction of the
parliamentary system in Germany; the crushing of all internal opposition
by force, the restoration of the power of the _Wehrmacht_. In addition,
Hitler indicated that force was to be used in solving problems with
other nations (_D-203_). The financial and political support for the
Nazis which Funk secured from industry promoted the campaign of force
and terror by which the Nazis seized and consolidated their control of
Germany.
The importance of Funk’s general contribution to the conspirators’
accession to power has been described in a book published by the Central
Publishing House of the Nazi Party:
“No less important than Funk’s accomplishments in the
programmatic field in the years 1931 and 1932 was his activity
of that time as the Fuehrer’s liaison man to the leading men of
the German economy in industry, trade, commerce and finance. On
the basis of his past work, his personal relations to the German
economic leaders were broad and extensive. He was now able to
enlist them in the service of Adolf Hitler, and not only to
answer their questions authoritatively, but to convince them and
win their backing for the Party. At that time, that was terribly
important work. Every success achieved meant a moral, political,
and economic strengthening of the fighting force of the Party
and contributed toward destroying the prejudice that National
Socialism is merely a party of class hatred and class struggle.”
(_3505-PS_)
After he had helped Hitler become Chancellor, Funk, as Reich Press
Chief, participated in the early cabinet meetings, in the course of
which the conspirators determined upon the means by which they would
secure the passage of the Enabling Act and destroy parliamentary
government in Germany (_2962-PS_; _2963-PS_). This law destroyed civil
liberties in Germany and marked the conspirators’ seizure of political
control over Germany.
B. _FUNK, BY VIRTUE OF HIS ACTIVITIES IN THE MINISTRY OF PROPAGANDA,
ACTIVELY PARTICIPATED IN THE CONSOLIDATION OF THE CONSPIRATORS’ CONTROL
OVER GERMANY._
The Nazis created a vast propaganda machine which they used to proclaim
the doctrine of the master race, to inveigh against the Jews, to impose
the leadership principle upon the German people, to glorify war as a
noble activity, to create the social cohesion necessary for war, and to
weaken the capacity and willingness of their intended victims to resist
aggression. (See Section 9 of Chapter VII on Propaganda, Censorship and
Supervision of Cultural Activities.)
The operation of this propaganda machine was principally the
responsibility of the Ministry of Public Enlightenment and Propaganda.
Funk played a significant role in the operations of that Ministry and in
related agencies of the Nazi State. On 30 January 1933, the day on which
Hitler became Reich Chancellor, Funk was appointed Press Chief of the
Reich Government. In that capacity, and even after the establishment of
the Ministry of Public Enlightenment and Propaganda, he reported
regularly to Hitler and President von Hindenburg (_3505-PS_; _3501-PS_).
On 13 March 1933, the Reich Ministry of Public Enlightenment and
Propaganda was established with Goebbels as its Chief and Funk as its
under-Secretary (_2029-PS_; _Voelkischer Beobachter_ 15 March 1933, p.
2. (South German Edition)). In an interview with a reporter from the
_Voelkischer Beobachter_ on 30 March 1933, Funk made clear the
importance which propaganda was to have in the Nazi State. He stated:
“Propaganda is the most modern instrument of power and fighting
weapon of state policy. The establishing of the Propaganda
Ministry is vital, for the national political policy of the new
State Leadership is to be the general good of the whole people.
Therefore, the total political, artistic, cultural and spiritual
life of the nation, must be brought on to one level and directed
from one central point.” (Voelkischer Beobachter, South German
Edition, 31 March 1933).
In order to achieve this purpose, the Ministry of Enlightenment and
Propaganda was organized so as to reach and control every medium of
expression within Germany. In the language of the decree defining the
duties of the Minister of Propaganda, he was to have
“* * * jurisdiction over the whole field of spiritual
indoctrination of the nation, of propagandizing the State, of
cultural and economic propaganda, of enlightenment of the public
at home and abroad; furthermore, he is in charge of all
institutions serving these purposes.” (_2030-PS_).
Under this decree, the Ministry controlled propaganda abroad, propaganda
within Germany, the press, music, the theater, films, art, literature,
radio and all related institutions.
Funk discharged important responsibilities in the Ministry. As
Undersecretary, he was Goebbels’ chief aide. In this capacity he appears
to have been the primary organizer of the machine from which flowed Nazi
propaganda. This is made clear by the following excerpt from an
affidavit dated 19 December 1945, and signed by Max Amann, who held the
position of Reich Leader of the Press and President of the Reich Press
Chamber.
“* * * In carrying out my duties and responsibilities, I became
familiar with the operations and the organization of the Reich
Ministry of Propaganda and Enlightenment.
“Walther Funk was the practical Minister of the Ministry of
Propaganda and Enlightenment and managed the Ministry. Funk was
the soul of the Ministry, and without him Goebbels could not
have built it up. Goebbels once stated to me that Funk was his
‘most effective man.’ Funk exercised comprehensive control over
all the media of expression in Germany: over the press, the
theater, radio and music. As Press Chief of the Reich Government
and subsequently as Under Secretary of the Ministry, Funk held
daily meetings with the Fuehrer and a daily press conference in
the course of which he issued the directives governing the
materials to be published by the German press”. (_3501-PS_).
A note for the files prepared by one Sigismund, an SS Scharfuehrer, also
stresses the important role which Funk played in The Ministry of
Propaganda (_3566-PS_). That note records a discussion between Sigismund
and one Weinbrenner, an official of the Ministry of Propaganda, about
the selection of a General Manager for the German Radio. The note
states:
“Weinbrenner made the following statement: * * * it is almost
impossible to determine whom the Minister would name General
Manager, since Dr. Goebbels reaches most of the important
decisions only by agreement with Under Secretary Funk.”
(_3566-PS_).
In addition to his position as Undersecretary, Funk had many other
important responsibilities in subordinate offices of the Ministry for
Propaganda (_3533-PS_). In 1933, for example, he was appointed Vice
President of the Reich Chamber of Culture, whose President was Goebbels
(_3533-PS_; _Reichsgesetzblatt_, 1933, I, p. 798).
Funk’s position as Vice President of the Reich Chamber of Culture was
related to his position as Undersecretary of the Ministry, since the
Chamber of Culture and the seven subordinate chambers were by law
subject to the control of the Ministry of Propaganda (_2082-PS_). This
control was insured in practice by placing officers of the Ministry of
Propaganda in the highest positions of the Chambers. Thus, for example,
Goebbels was its President and Funk its Vice President. By virtue of his
dual position, Funk directly promoted two fundamental and related Nazi
policies: (1) the regimentation of all creative activities in the
interest of Nazi political and military objectives; (2) the elimination
of Jews and dissidents from the so-called cultural professions.
The mechanics by which these policies were carried out have been
described in Section 9 of Chapter VII on Propaganda, Censorship and
Supervision of Cultural Activities. That description will be
supplemented here only by reference to the second decree for the
Execution of the Law of Reich Chamber of Culture, dated 9 November 1933
(_2872-PS_). This decree, which was signed by Funk, representing
Goebbels, fixed the effective date for the entire scheme for the
domination and purging of the cultural professions.
The control of the Ministry of Propaganda was based in part on the
requirement that persons engaged in so-called “cultural activities”
belong to the appropriate Chamber (_1933 Reichsgesetzblatt_, I, p. 797).
Decrees were then passed which prescribed standards of admission to
these Chambers, which automatically excluded Jews. For example, in the
field of journalism, “only persons who were of Aryan descent and not
married to a person of non-Aryan descent” were permitted to be so-called
_Schriftleiter_, that is, to perform any work relating to the contents
of a newspaper or a political magazine (_2083-PS_).
Similarly, newspaper publishers had to submit proof tracing their Aryan
descent (and that of their spouses) as far back as the year 1800 (Decree
24 April 1935, issued by the President of the Reich Press Chamber,
Article 1, 3 and Article II, 1(f) and 2, reprinted in Karl Friedrich
Schrieber in “_Das Recht der Reichskulturkammer_”, vol. 2, 1935, pp.
109-112; Decrees 15 April and 22 May 1936 issued by the President of
Reich Press Chamber reprinted in Karl Friedrich Schrieber “_Das Recht
der Reichskulturkammer_”, vol. 4, 1936, pp. 101-102, 120-122; see also:
Decree 17 September 1934 reprinted in Karl Friedrich Schrieber’s “_Das
Recht der Reichskulturkammer_”, vol. 2, 1935, p. 79).
In view of Funk’s official positions and the policies which he advanced,
it is natural that Nazi writers have stressed his contribution to the
perversion of German culture. Thus Oestreich’s biography of Funk states:
“Besides, Funk had a special duty from his Ministry received the
task to take care of the cultural life. In this position he
organized quietly a tremendous concern which represented an
investment of many hundreds of millions. In close co-operation
with the Reich Leader of the Press, Max Amann, the economic
fundamentals of the German press were reconstructed according to
the political necessities. The same took place in the film
industry and in other cultural fields.” (_3505-PS_)
The reconstruction of “the economic fundamentals of the German press * *
* and other cultural fields” was a biographer’s euphemism for the
elimination of Jews and dissidents from the field of literature, music,
theater, journalism, broadcasting, and the arts.
The completeness with which the policy of cultural extermination was
carried out is made clear by a pamphlet entitled “The Reich Ministry for
Public Enlightenment and Propaganda”, by Georg Wilhelm Mueller, an
official of the Ministry of Propaganda, which was published by the
German Academy for Politics as part of a series on the organization of
the Nazi Government. That pamphlet states:
“The Department Special Cultural Tasks (a department within the
Ministry of Propaganda) serves mainly the purpose to remove the
Jews from cultural professions. It reviews the political
attitude of all artistic or cultural workers and cultural
economic enterprises that are members of the seven individual
chambers of the Reich Chamber of Culture (except the Reich
Chamber of the Press), it has to supervise the removal of Jews
in the entire field of the seven individual chambers and settles
as highest authority all complaints and appeals of cultural
workers whose membership was rejected by the Chamber because of
lack of proof of Aryan descent. At the same time, it is the task
of this department to supervise the activities of non-Aryans in
the intellectual and entire cultural field, therefore, also the
supervision of the only Jewish organization in the cultural
field in the entire Reich territory, that is, the ‘Jewish
_Kulturbund_’ (Jewish Cultural Association).
“In this way this department also cooperates with all other
professional departments of the Ministry or the Chambers by
consulting the local officials of the party, the State police
offices, etc., and when supervising the Jewish ‘cultural work’
with the political police.
“It is mainly the merit of this department—to 1937 a department
in the Managing Office of the Reich Chamber of Culture—that the
purge of the entire German cultural life from Jewish or other
non-German influences was completely accomplished according to
the assignments of the Minister.” (_Das Reichsministerium fuer
Volksaufklaerung und Propaganda_ (Reich Ministry of Public
Enlightenment and Propaganda) pp. 30-31).
Funk contributed to the achievement of the Nazi propaganda program in
other capacities. Thus, in 1933, Goebbels appointed him Chairman of the
Board of Directors of the Reich Broadcasting Company (_3505-PS_). That
company was the coordinating authority for all German radio broadcasting
and supervised all German radio stations, with a view to insuring that
radio serve the political purposes of the Nazi State (_Das Deutsche
Fuehrerlexikon_, 1934-1935, p. 139; _3505-PS_). Moreover, in 1933, Funk
was also appointed Vice-president of the _Filmkreditbank_. The
_Filmkreditbank_ was a government-controlled financing corporation which
influenced film production in the interests of the Nazi program by
granting financial assistance in connection with only those films deemed
desirable from the Nazi point of view (Seager, “_Der Film im
Nationalsocialistischen Staat_” (“The Film in the National-Socialist
State”), in Frank: “_Nationalsozialistisches Handbuch fuer Recht und
Gesetzgebung_” (“National Socialist Handbook for Law and Legislation”),
1935, 2nd edition, p. 512). It is clear from the foregoing that Funk was
from 1933 until the end of 1937 a versatile and key figure in the
propaganda field. His activities ranged from daily conferences with the
Fuehrer and the organization of a new large Ministry vital to the Nazi
program, to depriving the most humble Jewish artist of his power to earn
a livelihood. Funk appears to have been what Goebbels said he was:
Goebbels’ “most effective man” (_3501-PS_).
C. _FUNK, AS MINISTER OF ECONOMICS, CONTINUED TO ADVANCE THE CONSPIRACY
TO PERSECUTE THE JEWS BY ACTIVELY PARTICIPATING IN THE PLANNING AND
EXECUTION OF THE MEASURES WHICH ELIMINATED THE JEWS FROM THE GERMAN
ECONOMY._
The systematic anti-Jewish program of the Nazi conspirators is discussed
in Chapter XII. The evidence discussed below shows that Funk, by virtue
of his activities as Minister of Economics, is responsible for the
planning and execution of the program to exclude the Jews from the
German economy.
The first record of Funk’s anti-Jewish activities as Minister of
Economics consists of a series of decrees which he signed and which were
designed to exclude the Jews from various occupations, such as real
estate business, auctioneering, etc. Reference will be made to only a
few of these decrees (Decree amending trade code of 6 July 1938, (_1938
Reichsgesetzblatt_, I, p. 832); decree concerning occupation of
auctioneers, 12 February 1938, _1938 Reichsgesetzblatt_, I, p. 202.
Moreover, on 14 June 1938, Funk signed a decree providing for the
registration of “Jewish enterprises” (_1938 Reichsgesetzblatt_, I, p.
627)). This decree was part of a system of economic persecution which
obliterated Jewish ownership in all commercial, financial and industrial
enterprises.
In 1938, the death of von Rath in Paris was exploited by the Nazis as a
pretext for intensifying the persecution of the Jews. Their new
anti-Jewish policy called for the complete elimination of Jews from the
economic life of Germany. Funk took a significant part in both the
formulation and execution of this policy.
Thus, he was present at the meeting of 12 November 1938, where, with
Goering as the leading spirit, the basis for a more drastic policy
against the Jews was established (_1816-PS_). Goering described the
meeting as a decisive one, and demanded “that the Jewish question be
now, once and for all, coordinated and solved, one way or another.”
(_1816-PS_). Funk came to the meeting with a draft law which he had
prepared, and which he submitted with the following explanation:
“I have prepared a law elaborating that, effective 1 January
1939, Jews shall be prohibited to operate retail stores and
wholesale establishments, as well as independent artisan shops.
They shall further be prohibited from keeping employees or
offering any ready products on the market. Wherever a Jewish
shop is operated, the police shall shut it down. From 1 January
1939, a Jew can no longer be employed as an enterpriser, as
stipulated in the law for the Organization of National Labor
from 20 January 1934. If a Jew holds a leading position in an
establishment without being the enterpriser, his contract may be
declared void within 6 weeks by the enterpriser. With the
expiration of the contract, all claims of the employee,
including all claims to maintenance become obliterated. That is
always very disagreeable and a great danger. A Jew cannot be a
member of a corporation; Jewish members of corporations shall
have to be retired by 31 December 1938. A special authorization
is unnecessary. The competent Ministers of the Reich are being
authorized to issue the provision necessary for the execution of
this law.” (_1816-PS_)
The substance of Funk’s draft law promptly found its way into the
_Reichsgesetzblatt_. On 12 November 1938, Goering signed a decree
entitled “For the Elimination of Jews from the German Economic Life”
(_1662-PS_).
An examination of the provisions of the decree will reveal how well it
deserved its title. Thus, Jews were forbidden to operate retail stores
or mail order houses, or to engage independently in any handicraft, to
offer goods or services at markets, or to take orders therefor (Section
I): or to be “leaders” of any industrial enterprise. That decree also
provided that any Jew in an executive position of an industrial
enterprise was subject to notice of dismissal (Section 2), and that Jews
should be excluded from membership in cooperative organizations (Section
3). Funk was expressly authorized in Section 4 of the decree to issue
the regulations necessary for implementing its provisions (_1662-PS_).
Funk was also authorized to issue the regulations in connection with
another anti-Jewish decree, also issued on 12 November 1938. This decree
provided that all damage done to Jewish enterprises and apartments
during the riots of 8, 9, and 10 November, was to be repaired by the
Jewish owners out of their own pockets, and that claims by German Jews
against insurance companies were to be confiscated in favor of the
German Government (_1938 Reichsgesetzblatt_, I, p. 1581).
Soon after the passage of the decree of 12 November, Funk, in a speech
which he delivered on the Jewish question, made it clear that the
program of economic persecution was a part of the larger program of
extermination and boasted of the fact that the new program insured the
complete elimination of the Jews from the German economy. In the course
of this speech, Funk stated:
“The state and the economy constitute a unity. They must be
directed according to the same principles. The best proof
thereof has been rendered by the most recent development of the
Jewish problem in Germany. One cannot exclude the Jews from the
political life, but let them live and work in the economic
sphere. The fact that the last violent explosion of the disgust
of the German people, because of a criminal Jewish attack
against the German people, took place at a time when we were
standing just before the termination of the economic measures
for the elimination of the Jews from the German economy—this
fact is a result of the other fact that in the last years we had
not handled this problem sufficiently early and consistently. In
any event, the basis of a complete elimination of the Jews also
from the economy had already been laid by the decrees of the
Commissioner for the Four Year Plan, General Field Marshal
Goering, who was the first to undertake the solution of this
problem. In the meantime, by means of Aryanization, performed
under governmental supervision, the Jews had already been
excluded completely from the stock exchanges and the banks and
almost completely from the large businesses and all important
industrial enterprises. According to estimates, of the net
property of approximately 7 billion marks, determined pursuant
to the decree for the registration of Jewish property, 2 billion
marks have already been transferred into German possession.”
(_3545-PS_).
On 3 December 1938, Funk again advanced the policy of economic
extermination by signing a decree which carried out the promise of the
more severe anti-Jewish policy implied in his above speech (_1409-PS_).
This decree imposed additional and drastic economic disabilities upon
Jews and subjected their property to confiscation and forced
liquidation. It provided that: owners of Jewish enterprises could be
ordered to sell or liquidate their enterprises (Section 1); trustees
could be appointed for such enterprises, with the expenses of
trusteeship borne by the owner of the enterprise (Section 2); Jews could
be ordered to sell their property (real estate, etc.) (Section 6); Jews
were prohibited from acquiring any real estate (Section 7); governmental
consent was required for any disposition of real estate (Section 8);
Jews were forced to deposit all stocks, mining shares, bonds, and other
securities with specially designated banks, and accounts had to be
marked “Jewish” (Section 11); Jews were forbidden to acquire, to give as
security, or to sell objects made of gold, platinum, or silver, precious
stones, or pearls, etc. (Section 14); and Jews could be required to make
certain payments to the Reich before receiving the consent necessary for
the transfer of their property (Section 15). (_1409-PS_).
In addition, many other decrees aiming at the economic ruin of the Jews
were promulgated over the signature of the Minister of Economics. For
example:
Decree, 23 November 1938, _1938 Reichsgesetzblatt_, I, p. 1642,
signed by Brinkmann acting for Funk and containing detailed
rules for the liquidation of Jewish retail stores, etc.;
Decree, 14 December 1938, _1938 Reichsgesetzblatt_, I, p. 1902,
also signed by Brinkmann acting for Funk, and providing detailed
rules for the elimination of Jews from industrial enterprises;
Decree, 8 May 1939, _1939 Reichsgesetzblatt_, I, p. 895, signed
by Dr. Landfried acting for Funk, excluding Jews from the
occupation of travel agents;
Decree, 4 May 1940, _1940 Reichsgesetzblatt_, I, p. 730, also
signed by Dr. Landfried acting for Funk, concerning registration
of transfers of Jewish property;
Decree, 14 November 1940, _1940 Reichsgesetzblatt_, I, p. 1520,
also signed by Dr. Landfried acting for Funk, establishing a
procedure for setting aside financial arrangements which Jews,
discharged from executive positions of industrial enterprises
prior to 12 November 1938, had made with their companies.
Extending certain of the above-described decrees to Austria,
see, e.g.:
Decree, 22 August 1942, _1942 Reichsgesetzblatt_, I, p. 537,
signed by von Hanneken, acting for Funk;
Decree, 4 December 1940, _1940 Reichsgesetzblatt_, I, p. 1564,
signed by Dr. Landfried acting for Funk.
Funk had important responsibilities, not only in the formulation of
anti-Jewish policy and in the drafting of anti-Jewish legislation, but
also in the administration of the conspirators’ anti-Jewish measures.
Funk was the person to whom appeals were made concerning action taken by
subordinate officials in the administration of the anti-Jewish economic
program. In fact, he was the paramount authority in this field; his
decisions were final and conclusive. For example, he had the final voice
in the administrative hierarchy set up for deciding whether an
enterprise was a Jewish enterprise within the meaning of the decree
requiring the registration of such enterprises (Decree of 14 June 1938,
section 9, _1938 Reichsgesetzblatt_, I, p. 628; see also decree of 3
December 1938, section 19, _1938 Reichsgesetzblatt_, I, p. 1711; decree,
14 November 1940, _1940 Reichsgesetzblatt_, I, p. 1520).
Nazi publications have recognized the significant contribution made by
Funk to the anti-Jewish program. Thus Hans Quecke, an official of the
German Ministry of Economics, in describing the work of the Ministry
during Funk’s incumbency, stated:
“A task of special political significance and economic
importance arose as an absolute necessity out of the National
Socialist conception of state and economy, namely, _the
eradication of Jewish influence from the economy_. In this
connection, a wealth of legislative and administrative work,
though temporary, was created for the Ministry. The steps of the
work were as follows: definitions of the term ‘Jewish
enterprise’, registration of Jewish property, securing the
‘deployment’ of such property in accordance with the interests
of the German economy, exclusion of Jewish employees from
executive positions, and, finally, re-examination of steps taken
in the de-Judaization of enterprises with a view to ordering
payments to the Reich for the unjust profits secured in the
process of de-Judaization. That task can now be considered as
practically completed in the field of the industrial economy.”
(Building of the Third Reich (_Das Dritte Reich in Aufbau_) Vol.
5, pp. 318-319 (1941)).
Moreover, Funk himself, in the course of administering this program,
emphasized the importance of his new role. For example, on 6 February
1939, he issued a circular in connection with the administration of the
decree of 3 December 1938 which, as indicated, he himself signed. In
that circular, which was published in the Ministerial Gazette of the
Reich and Prussian Ministry of the Interior (“_Ministerialblatt des
Reichs—und Preussischen Ministeriums des Innern_”), for 1939, No. 7, p.
265, Funk stressed (at p. 265) “the great political and economic
importance” of the anti-Jewish program and stated with respect to the
broad powers conferred by the decree of 3 December 1938, that:
“* * * The extent and speed with which they [the powers] will be
utilized, is dependent upon _my_ orders, to be given under the
general direction of Goering.”
In the same circular (at p. 265) Funk also emphasized the importance of
the laws for de-Judaization, stating:
“The execution of the laws for the economic de-Judaization will,
for a time, impose extraordinary burdens upon the administrative
organization. However, it is expected that the officers charged
with the execution, in view of the great political and economic
importance of the tasks assigned to them, will bend all their
efforts to assure a most rapid, efficient, and in every way
faultless execution of the de-Judaization.”
Funk, in an interrogation dated 22 October 1945, admitted and deplored
his responsibility for the economic persecution of the Jews:
“Q. All the decrees excluding the Jews from industry were yours,
were they not?
“A. * * * So far as my participation in this Jewish affair is
concerned, that was my responsibility and I have regretted it
later on that I ever did participate. The Party had always
brought pressure to bear on me previously to make me agree to
the confiscation of Jewish property, and I had refused
repeatedly. But later on, when the anti-Jewish measures and the
force used against the Jews came into force, something legal had
to be done to prevent the looting and confiscation of all Jewish
property.
“Q. You know that the looting and all that was done at the
instigation of the Party, don’t you?
“(_Here witness weeps_)
“A. Yes, most certainly. That is when I should have left in
1938, of that I am guilty, I am guilty. I admit that I am a
guilty party here.” (_3544-PS_)
D. _FUNK WITH KNOWLEDGE OF THE CONSPIRATORS’ PLANS FOR AGGRESSION,
ACTIVELY PARTICIPATED IN MOBILIZING THE GERMAN ECONOMY FOR AGGRESSIVE
WAR: HE ALSO PARTICIPATED IN THE WAGING OF AGGRESSIVE WARS AND WAS A
MEMBER OF WAR PLANNING AGENCIES WHICH WERE RESPONSIBLE FOR POLICIES AND
ACTS CONTRARY TO THE LAWS OF WAR._
Funk was vested with, and carried out, major responsibilities in
connection with the planning and execution of the Nazi program of
economic mobilization for aggression. Thus, in 1938 he succeeded Schacht
as Minister of Economics (_3533-PS_).
Immediately before Funk actually took over the Reich Ministry of
Economics there was a major reorganization of its functions, which
integrated the Ministry with the Four Year Plan as the Supreme Command
of the German military economy. The reorganization was accomplished by
Goering, in his capacity as Commissar for the Four Year Plan, by a
decree dated 4 February, 1938 (“The Four Year Plan” (_Der
Vierjahresplan_) official monthly bulletin, issued by Goering, Vol. II,
1938, p. 105). Under this decree, the jurisdiction of the Economics
Ministry was defined as covering the following fields of Germany’s
economy: German raw and working materials, mining, iron industry, power
industry, handicrafts, finance and credit, foreign trade, devisen, and
exports. As a result of this decree, sectors of the German economy which
were strategic in the organization of war and armaments economy were
placed under the immediate control of Funk.
Furthermore, the Reich Office for Economic Development, charged by the
decree, with “research, planning and execution of the Four Year Plan”,
was incorporated into the Reich Ministry of Economics. Similarly, the
Reich Office for Soil Research and the Office of the Reich Commissar for
the exploitation of Scrap Materials were made subject to that Ministry.
Thus, it is clear that the reorganization decree concentrated
significant responsibilities in the hands of Funk and thereby made him
one of the chief agents of economic mobilization during a decisive
period.
Subsequently, Funk was, by a secret law, expressly charged with the task
of mobilizing the German economy for war. On 4 September 1938, while the
conspirators were engaged in intensive planning for aggression against
Czechoslovakia, Hitler signed a revision of the so-called Reich Defense
Law (_2194-PS_). This law conferred upon Funk substantially the same
authority which had been vested in Schacht by the Reich Defense Law of
21 May 1935 (_2261-PS_). The law of 4 September 1938 provided in part:
“It is the task of the GBW [Chief Plenipotentiary for Economics]
to put all economic forces into the service of the Reich
defense, and to safeguard economically the life of the German
nation. To him are subordinate: the Reich Minister of Economics,
the Reich Minister of Nutrition and Agriculture, the Reich
Minister of Work, the Reich Chief of Forestry, the Reich
Commissar for Price Control. He is furthermore responsible for
directing the financing of the Reich defense within the realm of
the Reich Finance Ministry and the Reich Bank.
“The GBW must carry out the demands of the OKW which are of
considerable importance for the armed forces; and he must insure
the economic conditions for the production of the armament
industry directed immediately by the OKW according to its
demands. If the demands of the armed forces cannot be brought
into accord with the affairs of economy, then the Fuehrer and
Reich Chancellor decides.
“The GBW has the right within his sphere to issue laws with the
consent of the OKW and GBV which differ from the existing laws.”
(_2194-PS_).
The law of 4 September 1938, which at the specific direction of Hitler
was not made public, was signed by Hitler and by Funk, among others, as
“Chief Plenipotentiary for Economics” (_2194-PS_).
Funk, in a speech which he delivered on 14 October 1939, explained how
he, as Chief Plenipotentiary for Economics, had, for a year and a half
prior to the launching of the aggression against Poland, advanced
Germany’s economic preparation for war. He stated:
“Although all the economic and financial departments were
harnessed in the tasks and work of the Four Year Plan under the
leadership of _Generalfeldmarschall_ Goering, the war economic
preparation of Germany has also been advanced in secret in
another sector for well over a year, namely, by means of the
formation of a national guiding apparatus for the special war
economic tasks, which had to be mastered at that moment, when
the condition of war became a fact. For this work as well all
economic departments were combined into one administrative
authority, namely under the General Plenipotentiary for Economy,
to which position the Fuehrer appointed me one and a half years
ago.” (_3324-PS_)
In his dual capacity of Chief Plenipotentiary for Economics and Minister
of Economics, Funk naturally was advised of the requirements which the
conspirators’ program of aggression imposed on the economy. Thus, during
a conference in the Reich Aviation Ministry on 14 October 1938 under the
chairmanship of Goering, Goering referred to Hitler’s orders for an
abnormal increase of armament, particularly weapons for attack, and
directed the Ministry of Economics to submit suggestions on how to
finance this rearmament by increasing exports. The report of Goering’s
remarks states in part:
“General Field Marshal Goering opened the session by declaring
that he intended to give directives about the work for the next
months. Everybody knows from the press what the world situation
looks like and therefore the Fuehrer has issued an order to him
to carry out a gigantic program compared to which previous
achievements are insignificant. There are difficulties in the
way which he will overcome with utmost energy and ruthlessness.
“The amount of foreign exchange has completely dwindled on
account of the preparation for the Czech Enterprise and this
makes it necessary that it should be strongly increased
immediately. Furthermore, the foreign credits have been greatly
overdrawn and thus the strongest export activity—stronger than
up to now—is in the foreground. For the next weeks an increased
export was first priority in order to improve the foreign
exchange situation. The Reich Ministry for Economy should make a
plan about raising the export activity by pushing aside the
current difficulties which prevent export.
“These gains made through the export are to be used for
increased armament. The armament should not be curtailed by the
export activity. He received the order from the Fuehrer to
increase the armament to an abnormal extent, the air force
having first priority. Within the shortest time the air force is
to be increased five fold, also the navy should get armed more
rapidly and the army should procure large amounts of offensive
weapons at a faster rate, particularly heavy artillery pieces
and heavy tanks. Along with this manufactured armaments must go;
especially fuel, powder and explosives are moved into the
foreground. It should be coupled with the accelerated
construction of highways, canals, and particularly of the
railroads.” (_1301-PS_).
Goering’s words were the words of one already at war. And the emphasis
on quintupling the Air Force and accelerating weapon manufacture for
attack, were the words of a man waging aggressive war.
Funk actively participated in the planning of wartime financial measures
(_1301-PS_). This was natural since Funk, after 1938, occupied three
positions crucial to finance: Minister of Economics, President of the
Reichsbank (to which he was appointed in January 1939), and Chief
Plenipotentiary for Economics. Funk’s role in war financing is
illustrated by a letter, dated 1 June 1939, from the Chief
Plenipotentiary for Economics (Funk), signed on his behalf by Dr. Posse
(_3562-PS_). This letter found in the captured files of the Reich
Ministry of Economics, transmitted the minutes of a meeting concerning
the financing of the war. This meeting had been held under the
chairmanship of Dr. Landfried, Funk’s Undersecretary in the Reich
Ministry of Economics. The document bears a marginal note in the bottom
left hand corner, dated 5 June, stating that the document was “to be
shown to the Minister” [i.e., Funk]. Only eight copies were made of the
Minutes, which were marked “Top Secret”. Four of these copies were sent
to officials directly subordinate to Funk (two in the Reich Ministry of
Economics, one in the Reichsbank, and one in the Office of the Chief
Plenipotentiary for Economics). During the course of the meeting, which
was attended by twelve officials, five of whom were directly responsible
to Funk in his various capacities, the conferees discussed a memorandum
regarding war finance which had been prepared by the Chief
Plenipotentiary for Economics on May 9, 1939. The minutes of this
meeting state:
“* * * Then a report was made of the contents of the ‘Notes on
the Question of Internal Financing of War’, of 9 May of this
year (appendix to GBW 8/2179/39 Top Secret), in which the
figures given to me by the Reichs Minister of Finance are also
discussed. It was pointed out that the General Plenipotentiary
for the Economy is primarily interested to introduce into the
legislation for war finance, the idea of financing war
expenditures by anticipating future revenues, to be expected
after the war. * * *
“Undersecretary Newman, first, submitted for discussion the
question whether the production would be able to meet to the
assumed extent, the demands of the Army, especially if the
demands of the Army, as stated in the above report, would
increase to approximately 14 billions in the first three months
of war. He stated that, if the production potential of the
present Reich territory is taken as a basis, he doubts the
possibility of such a production increase.” (_3562-PS_).
During the course of the meeting one of the representatives of the High
Command stated:
“The demands of the Army would probably be higher in the first
three months of war than during the further course of the war.”
(_3562-PS_).
In the files of the Reich Ministry of Economics there was also found,
attached to the above letter and minutes, a Top Secret memorandum
entitled “Notes Concerning Financing of War.” That memorandum reveals
the plans to use the resources of countries to be occupied in the
interest of the Nazi war machine. It states:
“* * * First, as concerns the scope of the total production, it
is clear that the economic power of the Protectorate and of
other territories, possibly to be acquired, must of course be
completely exhausted for the purposes of the conduct of the war.
It is, however, just as clear that these territories cannot
obtain any compensation from the economy of Greater Germany for
the products which they will have to give us during the war,
because their power must be used fully for the war and for
supplying the civilian home population.” (_3562-PS_).
It is plain that Funk exercised comprehensive authority over large areas
of the German economy whose proper organization and direction were
critical to effective war preparation. The once powerful German military
machine, which rested on the foundation of thorough economic
preparation, reflected the contribution which Funk had made to Nazi
aggression.
Immediately before this machine was directed against Poland, the final
preparatory steps were taken, and the previous appointment of Funk as
Chief Plenipotentiary for Economics was made public. Thus on 27 August
1939, Funk, in this capacity, issued two decrees, one introducing
general rationing of consumers’ goods, the other setting up regional
economic authorities (_1939 Reichsgesetzblatt_, I, pp. 1495 and 1498).
Finally, on 30 August 1939, Hitler, Goering, and Lammers signed a decree
establishing the Ministerial Council for Reich Defense, composed of
Goering, Funk, and Hess, among others, to act as a War Cabinet (_1939
Reichsgesetzblatt_, I, p. 1532).
Funk mobilized the German economy for war with full knowledge of the
plans for military aggression. An irresistible inference of such
knowledge arises from the combination of several factors: from Funk’s
long and intimate association with the Nazi inner circle; from the very
nature of his official functions; from the war-dominated setting of Nazi
Germany; from the fact that force and the threat of force had become the
open and primary instruments of Nazi policy; and finally from the fact
that at the same time that Funk was making economic preparations,
specific plans for aggression—later to be carried out—were being
formulated, plans which could only be effective if they were
synchronized with the complementary economic measures.
The inference of Funk’s knowledge and intent is reinforced beyond
question by considering, in the light of the factors described above,
the more specific evidence of Funk’s knowledge of aggressive plans.
Thus, Funk, at the very beginnings of the Nazi Government, had stated
that the absorption of Austria by Germany was a political and economic
necessity, and that it would be achieved by whatever means were
necessary (_1760-PS_).
Goering had issued instructions to the Ministry of Economics—in the
language of a man waging aggressive war (_1301-PS_). Moreover, Funk and
his subordinates in May 1939 were making detailed plans for financing
the war, that is, a particular war, the war against Poland (_3562-PS_).
In connection with Funk’s economic planning for aggression, reference
should be made to other evidence of the preparatory work which Funk
carried on prior to the aggression against Poland. Shortly before the
attack on Poland, in a letter to Hitler dated 25 August 1939, Funk
expressed his gratification for his role in the “tremendous events” of
these days, and his thanks for Hitler’s approval of his economic war
measures. He concluded by giving Hitler his pledge in that hour
(_699-PS_). The text of the letter is as follows:
“Reich Minister Walther Funk.
Berlin W. 8, August 25, 1939.
Unter Den Linden 13.
“My Fuehrer:
“For the congratulations which you transmitted to me on my
birthday, in such extremely friendly and kind fashion, I want to
thank you from the depths of my heart. How happy and how
grateful we must be to you to be favored to experience these
colossal and world-moving times, and that we can contribute to
the tremendous events of these days.
“General-Field-Marshal Goering informed me, that last night
you—my Fuehrer—have approved in principle the measures
prepared by me for financing the war, for setting up the wage
and price systems and for carrying out the plan for an emergency
contribution [_Notopfer_]. This news has made me deeply happy. I
hereby most obediently report to you that I have succeeded,
through the provisions made already during the last month, to
make the German Reichsbank internally so strong and so safe
against attack from without that even the most serious
disturbances of the international currency and credit systems
would be absolutely unable to affect us.
“In the meantime I have in a wholly inconspicuous manner
converted into gold all assets of the Reichsbank and of the
German economy abroad on which we could possibly lay hands. With
the proposals worked out by me regarding a ruthless choking of
any unessential consumption and any public expenditure and
project not necessary for war we will be able to meet all
financial and economic demands without any serious
reverberations.
“In my capacity as General Plenipotentiary for Economics,
appointed by you, my Fuehrer, I have regarded it as my duty to
give you this report and this pledge in this hour.
“Heil, my Fuehrer
“(signed) Walther Funk”. (_699-PS_).
Funk both personally and through duly designated representatives also
participated in the planning which preceded the aggression against the
USSR. Thus, in April 1941, Rosenberg, after he had been appointed deputy
for centralized treatment of problems concerning the Eastern
Territories, discussed with Funk the economic problems which would be
raised when the plans for aggression in the East were carried out
(_1039-PS_). At that time Funk appointed Dr. Schlotterer as his deputy
to work with Rosenberg in connection with the exploitation of the
Eastern Territories. Funk’s deputy met with Rosenberg almost daily.
E. _FUNK WAS A MEMBER OF WAR-PLANNING AGENCIES WHICH WERE RESPONSIBLE
FOR POLICIES AND ACTS CONTRARY TO THE LAWS OF WAR._
After the launching of the Nazi aggression against Poland, Funk, in his
capacities as Minister of Economics, President of the Reichsbank, and
Chief Plenipotentiary for Economics, and as a member of the Central
Planning Board (to which he was appointed in September 1943), actively
participated in the waging of aggressive war on the economic front.
Moreover, by virtue of his membership in the Central Planning Board,
which formulated and directed the execution of the program for the
enslavement, exploitation, and degradation of millions of foreign
workers, Funk shares special responsibility for the Nazi Slave Labor
Program. (See Chapter X on the Slave Labor Program. This special aspect
of Funk’s responsibility was left for development by the French
prosecuting staff.)
F. _CONCLUSION._
It is clear that Funk was a central figure in the Nazi conspiracy and
that, as a member of the Nazi inner circle, he helped formulate, was
aware of, and promoted the realization of, the conspirators’ program. He
knew, moreover, that this program envisaged the use of terror and force
within and if necessary outside of Germany, and that it contemplated the
use of criminal means. Funk, by promoting the conspirators’ accession to
power and the realization of their program, signified his approval of
such crimes.
The evidence has also established that, after the Nazi seizure of power,
Funk promoted the achievement of the conspirators’ program by virtue of
his activities in the Ministry of Propaganda, activities which fomented
and carried out the persecution of Jews and dissidents; which
psychologically mobilized the German people for aggressive war; and
which reduced the willingness and capacity of the conspirators’ intended
victims to resist aggression. Funk also participated, as Minister of
Economics, in the formulation and execution of the policy for the
complete elimination of the Jews from the German economy.
As Minister of Economics, President of the Reichsbank, and Chief
Plenipotentiary for Economics, Funk mobilized the German economy for
aggressive war, with full knowledge of the conspirators’ plans for
aggression. Moreover, in these capacities, and as a member of the
Ministerial Council for the Defense and the Central Planning Board, he
also actively participated in the waging of aggressive wars. Finally, by
virtue of his membership in the Central Planning Board, which formulated
and directed the execution of the program for the enslavement,
exploitation, and degradation of millions of foreign workers, he bears a
special responsibility for the war crimes committed in the execution of
that program.
* * * * *
LEGAL REFERENCES AND LIST OF DOCUMENTS RELATING TO WALTER FUNK
│ │ │
Document │ Description │ Vol. │ Page
│ │ │
│Charter of the International Military │ │
│ Tribunal, Article 6. │ I │ 5
│International Military Tribunal, │ │
│ Indictment Number 1, Section IV (H);│ │
│ Appendix A. │ I │ 29, 62
│ ———— │ │
│Note: A single asterisk (*) before a │ │
│document indicates that the document │ │
│was received in evidence at the │ │
│Nurnberg trial. A double asterisk (**)│ │
│before a document number indicates │ │
│that the document was referred to │ │
│during the trial but was not formally │ │
│received in evidence, for the reason │ │
│given in parentheses following the │ │
│description of the document. The USA │ │
│series number, given in parentheses │ │
│following the description of the │ │
│document, is the official exhibit │ │
│number assigned by the court. │ │
│ ———— │ │
699-PS │Letter from Funk to Hitler, 25 August │ │
│1939, reporting on economic affairs. │ │
│(GB 49) │ III │ 509
│ │ │
*1039-PS │Report concerning preparatory work │ │
│regarding problems in Eastern │ │
│Territories, 28 June 1941, found in │ │
│Rosenberg’s “Russia File”. (USA 146) │ III │ 695
│ │ │
*1301-PS │File relating to financing of armament│ │
│including minutes of conference with │ │
│Goering at the Air Ministry, 14 │ │
│October 1938, concerning acceleration │ │
│of rearmament. (USA 123) │ III │ 868
│ │ │
1409-PS │Order concerning utilization of Jewish│ │
│property, 3 December 1938. 1938 │ │
│Reichsgesetzblatt, Part I, p. 1709. │ IV │ 1
│ │ │
1662-PS │Order eliminating Jews from German │ │
│economic life, 12 November 1938. 1938 │ │
│Reichsgesetzblatt, Part I, p. 1580. │ IV │ 172
│ │ │
*1760-PS │Affidavit of George S. Messersmith, 28│ │
│August 1945. (USA 57) │ IV │ 305
│ │ │
*1816-PS │Stenographic report of the meeting on │ │
│The Jewish Question, under the │ │
│Chairmanship of Fieldmarshal Goering, │ │
│12 November 1938. (USA 261) │ IV │ 425
│ │ │
2029-PS │Decree establishing the Reich Ministry│ │
│of Public Enlightenment and │ │
│Propaganda, 13 March 1933. 1933 │ │
│Reichsgesetzblatt, Part I, p. 104. │ IV │ 652
│ │ │
2030-PS │Decree concerning the Duties of the │ │
│Reich Ministry for Public │ │
│Enlightenment and Propaganda, 30 June │ │
│1933. 1933 Reichsgesetzblatt, Part I, │ │
│p. 449. │ IV │ 653
│ │ │
2082-PS │Law relating to the Reich Chamber of │ │
│Culture of 22 September 1933. 1933 │ │
│Reichsgesetzblatt, Part I, p. 661. │ IV │ 708
│ │ │
2083-PS │Editorial control law, 4 October 1933.│ │
│1933 Reichsgesetzblatt, Part I, p. │ │
│713. │ IV │ 709
│ │ │
*2194-PS │Top secret letter from Ministry for │ │
│Economy and Labor, Saxony, to Reich │ │
│Protector in Bohemia and Moravia, │ │
│enclosing copy of 1938 Secret Defense │ │
│Law of 4 September 1938. (USA 36) │ IV │ 843
│ │ │
*2261-PS │Directive from Blomberg to Supreme │ │
│Commanders of Army, Navy and Air │ │
│Forces, 24 June 1935; accompanied by │ │
│copy of Reich Defense Law of 21 May │ │
│1935 and copy of Decision of Reich │ │
│Cabinet of 12 May 1935 on the Council │ │
│for defense of the Reich. (USA 24) │ IV │ 934
│ │ │
*2828-PS │Interrogations of Funk on 4 June 1945 │ │
│and 26 June 1945. (USA 654) │ V │ 478
│ │ │
2872-PS │Fourth decree relative to Reich │ │
│Citizen Law of 25 July 1938. 1938 │ │
│Reichsgesetzblatt, Part I, p. 969. │ V │ 533
│ │ │
*2962-PS │Minutes of meeting of Reich Cabinet, │ │
│15 March 1933. (USA 578) │ V │ 669
│ │ │
*2963-PS │Minutes of meeting of Reich Cabinet, │ │
│20 March 1933. (USA 656) │ V │ 670
│ │ │
*2977-PS │Affidavit of Funk, 14 November 1945, │ │
│concerning positions held. (USA 10) │ V │ 683
│ │ │
*3324-PS │Funk on the Organization of War │ │
│Economy, published in Germany in the │ │
│Fight. (USA 661) │ VI │ 42
│ │ │
*3501-PS │Affidavit signed by Max Amann, 19 │ │
│December 1945. (USA 657) │ VI │ 207
│ │ │
*3505-PS │Extract from “Walter Funk—A Life for │ │
│the Economy”, 1941, by Paul Oestreich.│ │
│(USA 653) │ VI │ 208
│ │ │
3533-PS │Statement of Funk concerning positions│ │
│held by him. (USA 651) │ VI │ 216
│ │ │
*3544-PS │Interrogation of Funk, 22 October │ │
│1945. (USA 660) │ VI │ 217
│ │ │
*3545-PS │Speech by Funk, from Frankfurter │ │
│Zeitung, 17 November 1938. (USA 659) │ VI │ 239
│ │ │
*3562-PS │Letter from Chief Plenipotentiary for │ │
│Economy, 1 June 1939, transmitting │ │
│minutes of meeting concerning │ │
│financing of war. (USA 662). │ VI │ 248
│ │ │
*3563-PS │Extracts from German publications │ │
│concerning Funk’s positions and │ │
│activities. (USA 652) │ VI │ 251
│ │ │
3566-PS │Notes for files, prepared by │ │
│SS-Scharfuehrer Sigismund, concerning │ │
│General Manager of German │ │
│Broadcasting, 1 March 1937. │ VI │ 254
│ │ │
*D-203 │Speech of Hitler to leading members of│ │
│industry before the election of March │ │
│1933. (USA 767) │ VI │ 1080
│ │ │
*Chart No. 1 │National Socialist German Workers’ │ │
│Party. (2903-PS; USA) │ VIII │ 770
12. HJALMAR SCHACHT
The prosecution concedes, at the outset, that although Schacht believed
that the Jews of Germany should be stripped of their rights as citizens,
he was not in complete sympathy with that aspect of the Nazi Party’s
program which involved the wholesale extermination of the Jews, and that
he was, for that reason, attacked from time to time by the more extreme
elements of the Nazi Party. 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. But the solution
of these problems must be brought about under state leadership,
and cannot be left to unregulated individual actions, which mean
a disturbing influence on the national
The foregoing concessions should render it unnecessary for Schacht to
produce evidence upon these matters.
The prosecution’s case against Schacht is that he planned and prepared
for wars of aggression and wars in violation of international treaties,
agreements and assurances, and that he knowingly and wilfully
participated in the Nazi common plan or conspiracy to plan, prepare,
initiate, and wage such wars. The evidence establishes that Schacht
actively supported Hitler’s accession to power; that he was the chief
architect of the financial plans and devices which made possible the
huge program of rearmament in Germany; that he played a dominant role in
the economic planning of, and preparation for, wars of aggression; and
that he contributed his efforts willingly and with full knowledge of the
fact that the leader of the conspiracy, Adolf Hitler, was determined
upon attaining his objectives by launching aggressive wars.
A. _CHRONOLOGY OF SCHACHT’S OFFICIAL POSITIONS._
The chronology of Schacht’s official positions is as follows:
(1) Schacht was recalled by Hitler to the Presidency of the
Reichsbank on 17 March 1933 (_3021-PS_).
(2) Schacht was appointed acting Minister of Economics by Hitler
in August 1934 (_3021-PS_).
(3) By secret decree, Schacht was appointed General
Plenipotentiary for the War Economy in May 1935 (_2261-PS_).
(4) Schacht was awarded honorary membership in the Nazi Party
and the Golden Swastika on 30 January 1937, “the highest honor
the Third Reich has to offer” (_EC-500_).
(5) Schacht was re-appointed for one year as President of the
Reichsbank on 16 March 1937 (_3021-PS_).
(6) Schacht resigned as Minister of Economics and General
Plenipotentiary for the War Economy in November 1937 (_3021-PS_;
_EC-494_).
(7) Hitler appointed Schacht Minister Without Portfolio at the
same time (_3021-PS_).
(8) Schacht was re-appointed for a four year term as President
of the Reichsbank on 9 March 1938 (_3021-PS_).
(9) Schacht was dismissed as President of the Reichsbank on 20
January 1939. In connection therewith, Hitler expressed his deep
gratitude for Schacht’s past services and his gratification that
Schacht would remain to serve him as Minister Without Portfolio
(_EC-397_).
(10) Schacht remained as Minister Without Portfolio until
January 1943, when he was dismissed by Hitler. During the period
from the time of his dismissal as President of the Reichsbank
until the end of 1942, he continued to receive the full salary
he had been paid as the President of the Reichsbank, and
thereafter received a pension from the Reichsbank. As Minister
Without Portfolio, he received a large salary from the Nazi
Government and other emoluments of the office (_3724-PS_).
B. _PRIOR TO 1933, SCHACHT ACCEPTED THE NAZI PROGRAM AND HELPED HITLER
TO POWER._
Schacht met Goering for the first time in December 1930, and Hitler
early in January 1931, at Goering’s house. He thought that Hitler was
“full of will and spirit” and a man “with whom one could cooperate”.
Thereafter, he actively supported Hitler’s accession to power
(_3725-PS_; _3729-PS_).
Schacht’s belief in the Nazi program and his undivided loyalty to Hitler
are revealed in his letter to Hitler dated 29 August 1932, wherein he
pledged continued support to Hitler after the latter’s poor showing in
the July 1932 elections and proferred advice concerning electioneering
tactics. The letter includes the following statements, _inter alia_:
“But what you could perhaps do with in these days is a word of
most sincere sympathy. Your movement is carried internally by so
strong a truth and necessity that victory in one form or another
cannot elude you for long. * * *”
* * * * * *
“Wherever my work may take me in the near future even if you
should see me one day within the fortress—you can always count
on me as your reliable assistant.” (_EC-457_).
Subsequently, on 12 November 1932, he again wrote to Hitler,
congratulating him upon his firm attitude and stating:
“I have no doubt that the present development of things can only
lead to your becoming chancellor. * * * I am quite confident
that the present system is certainly doomed to disintegration.”
(_EC-456_).
The fact that Schacht was in complete accord with Hitler’s program is
further shown by the following entry of 21 November 1932, in Goebbels’
diary:
“In a conversation with Dr. Schacht, I assured myself that he
absolutely represents our point of view. He is one of the few
who accepts the Fuehrer’s position entirely.” (_2409-PS_).
Schacht has himself confirmed the correctness of Goebbels’ statement
(_3729-PS_).
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. In his
letter to Hitler of 12 November 1932, he wrote that:
“It seems as if our attempt to collect a number of signatures
from business circles for this purpose (your becoming
Chancellor) was not altogether in vain * * *.” (_EC-456_)
He organized the financial means for the decisive March 1933 election,
at a meeting of Hitler with a group of German industrialists in Berlin.
At this meeting, Hitler bluntly announced his plans to destroy the
parliamentary system in Germany, to crush all internal opposition by
force, to restore the power of the Wehrmacht, and to gain his objectives
outside of Germany by the use of force. On this occasion, Schacht
collected a campaign fund of several million Marks for Hitler’s use
(_D-203_; _EC-439_).
In an eulogy of Schacht on the occasion of his sixtieth birthday, the
_Voelkischer Beobachter_, Hitler’s official organ, aptly described
Schacht’s activity in the period before the 1933 election as follows:
“In this critical period, Schacht never failed to point at Adolf
Hitler as the only possible leader of the Reich.”
* * * * * *
“The name of Dr. Schacht will remain linked with the transition
of the German economy to the new National Socialist methods”
(_EC-499_).
C. _SCHACHT PLAYED A DOMINANT ROLE IN THE CONSPIRATORS’ PROGRAM OF
REARMAMENT AND ECONOMIC PLANNING AND PREPARATION FOR WAR._
Germany was virtually prostrate in the early part of 1933; she was faced
with dwindling revenues from taxation and seemingly unable to raise
money either through external or internal loans. Hitler entrusted to
Schacht the task of wringing from the depressed German economy the
tremendous material requirements of armed aggression, and endowed him
with vast powers over every sector of German industry, commerce, and
finance to carry out that task. Some of the devices which Schacht
employed to fulfill his mission will now be examined.
Schacht’s program, as hereinafter outlined, was, by his own admissions,
dedicated to the accomplishment of Hitler’s armament program. In a
memorandum to Hitler dated 3 May 1935 concerning the financing of
armament, Schacht wrote:
“The following comments are based on the assumption that the
accomplishment of the armament program in regard to speed and
extent, is _the_ task of German policy, and that therefore
everything else must be subordinated to this aim, although the
reaching of this main goal must not be imperiled by neglecting
other questions. * * *”
* * * * * *
“* * * all expenditures which are not urgently needed in other
matters, must stop and the entire, in itself small, financial
power of Germany must be concentrated toward the one goal: to
arm.” (_1168-PS_).
In a letter to General Thomas dated 29 December 1937, Schacht stated:
“I have always considered a rearmament of the German people as
_conditio sine qua non_ of the establishment of a new German
nation.” (_EC-257_).
Schacht’s vast achievements in furtherance of the conspirators’ program
may conveniently be considered under four headings: (a) armament
financing; (b) the “New Plan”; (c) control of production; and (d) plans
and preparations for economic controls during war.
(1) _Armament Financing._
(_a_) _Mefo bills._ The financing of the conspirators’ huge rearmament
program presented a twofold problem to Schacht. First, was the need of
obtaining funds over and above the amount which could be obtained
through taxation and public loans. Second, was the conspirators’ desire,
in the early stages of rearmament, to conceal the extent of their
feverish armament activities. Schacht’s answer to the problem was the
“mefo” bills, a scheme which he devised for the exclusive use of
armament financing (_EC-436_).
Transactions in “mefo” bills worked as follows: “mefo” bills were drawn
by armament contractors and accepted by a limited liability company
called the _Metallurgische Forschungsgesellschaft_, m.b.H.(MEFO). This
company was merely a dummy organization; it had a nominal capital of
only one million Reichsmarks. “Mefo” bills ran for six months, but
provision was made for extensions running consecutively for three months
each. The drawer could present his “mefo” bills to any German bank for
discount at any time, and these banks, in turn, could rediscount the
bills at the Reichsbank at any time within the last three months of
their earliest maturity. The amount of “mefo” bills outstanding was a
guarded state secret (_EC-436_). The “mefo” bill system continued to be
used until 1 April 1938, when 12 billion Reichsmarks of “mefo” bills
were outstanding (_EC-436_). This method of financing enabled the Reich
to obtain credit from the Reichsbank which, under existing statutes, it
could not directly have obtained. Direct lending to the Government by
the Reichsbank had been limited by statute to 100 million Reichsmarks
(_Reichsgesetzblatt_, 1924, II, p. 241). Schacht has conceded that his
“mefo” bill device “enabled the Reichsbank to lend by a subterfuge to
the Government what it normally or legally could not do” (_3728-PS_).
In a speech delivered on 29 November 1938, Schacht glowingly described
the credit policy of the Reichsbank of which he was the author as
follows:
“It is possible that no bank of issue in peacetimes carried on
such a daring credit policy at the Reichsbank since the seizure
of power by National Socialism. With the aid of this credit
policy, however, Germany created an armament second to none, and
this armament in turn made possible the results of our policy.”
(_EC-611_).
The “daring credit policy,” which made possible the creation of “an
armament second to none,” obviously embraced the “mefo” bill financing
which he had contrived.
(_b_) _Use of funds of opponents of Nazi regime._ In his efforts to draw
upon every possible source of funds for the conspirators’ rearmament
program, Schacht even used the blocked funds of foreigners’ deposits in
the Reichsbank. In his memorandum to Hitler of 3 May 1935, Schacht
boasted:
“The Reichsbank invested the major part of Reichsbank accounts
owned by foreigners, and which were accessible to the
Reichsbank, in armament drafts. Our armaments are, therefore,
being financed partially with the assets of our political
opponents.” (_1168-PS_).
(_c_) _Taxation and long term indebtedness._ “Mefo” bills and the funds
of political opponents of the conspirators were, of course, not the only
sources from which Schacht drew to finance the armament program. Funds
for rearmament were likewise derived from taxation and an increase in
public debt—channels through which part of national income is
ordinarily diverted to public authorities. But what distinguished the
conspirators’ program of public indebtedness was the fact that the
German capital market was completely harnessed to the expanding needs of
the Nazi war machine. By a series of controls, they reduced to the
minimum consistent with their rearmament program, all private issues
which might have competed with Government issues for the limited funds
in the capital market. Thus, the capital market was, in effect,
pre-empted for Government issues (_EC-497_; _EC-611_).
During the period from 31 December 1932 to 30 June 1938, the funded debt
of the Reich rose from 10.4 billion Marks to 19 billion Marks
(_EC-419_).
This large increase in funded debt was dedicated “as far as possible” to
“the financing of armament and the Four-Year Plan” (_EC-611_).
(2) _The New Plan._ The conspirators’ grandiose armament plans obviously
required huge quantities of raw materials. Schacht was a proponent of
the view that as much of the requisite raw materials as possible should
be produced within Germany. At the same time, however, he recognized
that large imports of raw materials were indispensable to the success of
the conspirators’ gigantic armament program. To that end, he fashioned
an intricate system of controls and devices which he called the “New
Plan” (_Reichsgesetzblatt_, 1934, I, pp. 816, 829, 864;
_Reichsgesetzblatt_, 1935, I, p. 105).
There were three main features of the “New Plan” as devised by Schacht:
(1) restriction of the demand for such foreign exchange as would be used
for purposes unrelated to the conspirators’ rearmament program; (2)
increase of the supply of foreign exchange, as a means of paying for
essential imports which could not otherwise be acquired; and (3)
clearing agreements and other devices obviating the need for foreign
exchange. Under the “New Plan”, economic transactions between Germany
and the outside world were no longer governed by the autonomous price
mechanism; they were determined by a number of Government agencies whose
primary aim was to satisfy the needs of the conspirators’ military
economy (_EC-437_).
Schacht accomplished the negative task of restricting the demand for
foreign exchange
“by various measures suspending the service on Germany’s foreign
indebtedness, by freezing other claims of foreigners on Germany,
by a stringent system of export controls and by eliminating
foreign travel and other unessential foreign expenditures.”
(_EC-437_).
In order to increase the available supply of foreign exchange
“Schacht repeatedly requisitioned all existing foreign exchange
reserves of German residents, required all foreign exchange
arising out of current exports and other transactions to be sold
to the Reichsbank, and by developing new export markets. Exports
were encouraged by direct subsidies and by accepting partial
payment in German foreign bonds or in restricted Marks which
could be acquired by foreign importers at a substantial
discount.” (_EC-437_).
A vast network of organizations was erected to effectuate these various
measures. Suffice it for the present purposes to mention merely one of
these organizations: the supervisory agencies (_Ueberwachungsstellen_).
These agencies, which were under Schacht’s control as Minister of
Economics, decided whether given imports and exports were desirable;
whether the quantities, prices, credit terms, and countries involved
were satisfactory; and, in short, whether any particular transaction
advanced the conspirators’ armament program. The overriding military
purpose of the series of controls instituted under the “New Plan” is
plainly shown in Schacht’s letter of 5 August 1937 to Goering, wherein
he said:
“* * * The very necessity of bringing our armament up to a
certain level as rapidly as possible must place in the
foreground the idea of as large returns as possible in foreign
exchange and therewith the greatest possible assurance of raw
material supplies, through exporting.” (_EC-497_)
There remains for consideration that aspect of the “New Plan” which
involved extensive use of clearing agreements and other arrangements
made by Schacht to obtain materials from abroad without the expenditure
of foreign exchange. The principle of the clearing system is as follows:
The importer makes a deposit of the purchase price in his own currency
at the national clearing agency of his country, which places the same
amount to the credit of the clearing agency of the exporting country.
The latter institution then pays the exporter in his own currency. Thus,
if trade between two countries is unequal, the clearing agency of one
acquires a claim against the agency of the other. That claim, however,
is satisfied only when a shift in the balance of trade gives rise to an
offsetting claim.
This device was used by Schacht as a means of exploiting Germany’s
position as Europe’s largest consumer in order to acquire essential raw
materials from countries which, because of the world wide economic
depression, were dependent upon the German market as an outlet for their
surplus products. Speaking of his system of obtaining materials abroad
without the use of foreign exchange, Schacht has stated:
“It has been shown that, in contrast to everything which
classical national economy has hitherto taught, not the producer
but the consumer is the ruling factor in economic life. And this
thesis is somewhat connected with general social and political
observations, because it establishes 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.
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:
“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_).
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_)
(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
“* * * 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_).
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_).
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.
“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_)
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,
“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 thank 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:
“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:
“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 so-called 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_)
Later in the same year, Schacht again publicly advocated “_Lebensraum_”
for the German people in terms not unlike those employed by Hitler. In
his speech at Frankfurt on 9 December 1936, Schacht said:
“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. However, in
spite of all these efforts the space does not suffice.”
(_EC-415_)
Schacht had hoped, it is believed, that his desire for additional space
for Germany would be realized without resort to war. In Austria, for
example, he had authorized 200,000 Marks a month to be set aside for the
National Socialists in Austria, hoping thereby to facilitate the
absorption of Austria into Germany without war. But if Germany’s
neighbors would not accede to the conspirators’ demands for additional
space, Schacht was willing to go to war to fulfill those demands.
Thus, on 23 September 1935, Schacht told S. R. Fuller, Jr. at the
American Embassy in Berlin: