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Summary Nazi Germany - Schacht and Goering Economic Policy
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Hjalmar SchachtHjalmar Horace Greeley Schacht, the son of a salesman, was born in Tinglev, Germany, on
22nd January, 1877. His father had lived in the United States and named his son after the
radical journalist, Horace Greeley and a prominent campaigner in America against slavery.
Schacht studied medicine in Kiel, philology in Munich and political science Berlin before
taking a degree in economics in 1899.
He joined the Dresdner Bank and during the First World War was financial consultant for the
German occupation government in Belgium. In 1916 he became a director of the German
National Bank.
In 1923 he became Reich currency commissioner and was praised for bringing
Germany's inflation under control. Schacht was rewarded by being appointed president of
the Reichsbank. In 1929 he headed the German delegation that negotiated the Young Plan.
Schacht developed right-wing political ideas and in 1930 was converted to fascism after
reading Mein Kampf. In January, 1931 Hermann Goering arranged a meeting with Adolf
Hitler. Schacht agreed to raise funds for the Nazi Party. Schacht, who had good contacts
with Germany's industrialists persuaded Albert Voegler (United Steel Works) Gustav
Krupp and Alfried Krupp to join people such as Fritz Thyssen, Emile Kirdorf, Carl Bechstein
and Hugo Bruckmann in providing money for the party.
In November, 1932, Schacht organized the letter signed by Germany's leading industrialists
that urged Paul von Hindenburg to appoint Adolf Hitler as chancellor. This was successful
and on 20th February, 1933, Schacht arranged a meeting of the Association of German
Industrialists that raised 3 million marks for the Nazi Party in the forthcoming election.
After Adolf Hitler passed his Enabling Bill Schacht toured the United States where he made
forty speeches, appeared on radio and wrote several articles for American newsletters
where he claimed that Hitler would soon return Germany to democracy. He met Franklin D.
Roosevelt but made a bad impression on the president who later described him as
"extremely arrogant".
In August, 1934, Hitler appointed Schacht as his minister of economics. Deeply influenced by
the economic ideas of John Maynard Keynes and Roosevelt's New Deal, Schacht encouraged
Hitler to introduce a programme of public works, including the building of the Autobahnen.
Schacht also introduced the New Plan which rigorously controlled everything that was
imported into Germany. This involved negotiating a series of bilateral trade agreements
including one with the Soviet Union in 1935.
Like other Nazis Schacht was extremely hostile to Germany's Jewish population. In one
speech he argued that "the Jews must realize that their influence in Germany has
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