Hitler's Banker: Hyperinflation and Financial Manipulations - Economics, Finance (1997)

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Hjalmar Horace Greeley Schacht (22 January 1877 -- 3 June 1970) was a German economist, banker, liberal politician, and co-founder in 1918 of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank under the Weimar Republic. He was a fierce critic of his country's post-World War I reparation obligations. He became a supporter of Adolf Hitler and the Nazi Party, and served in Hitler's government as President of the Reichsbank and Minister of Economics. As such, Schacht played a key role in implementing the policies attributed to Hitler.[1] Since he opposed the policy of German re-armament spearheaded by Hitler and other prominent Nazis, Schacht was first sidelined and then forced out of the Third Reich government beginning in December 1937,[2] therefore he had no role during World War II. He became a fringe member of the German Resistance to Hitler and was imprisoned by the Nazis after the plot of 20 July 1944. After the war, he was tried at Nuremberg and acquitted. In 1953, he founded a private banking house in Düsseldorf. He also advised developing countries on economic development. Schacht was born in Tingleff, Schleswig-Holstein, Prussia, German Empire (now in Denmark) to William Leonhard Ludwig Maximillian Schacht and baroness Constanze Justine Sophie von Eggers, a native of Denmark. His parents, who had spent years in the United States, originally decided on the name Horace Greeley Schacht, in honor of the American journalist Horace Greeley. However, they yielded to the insistence of the Schacht family grandmother, who firmly believed the child's given name should be Danish. Schacht studied medicine, philology and political science before earning a doctorate in economics in 1899 -- his thesis was on mercantilism.[3] He joined the Dresdner Bank in 1903. In 1905, while on a business trip to the United States with board members of the Dresdner Bank, Schacht met the famous American banker J. P. Morgan, as well as U.S. president Theodore Roosevelt. He became deputy director of the Dresdner Bank from 1908 to 1915. He was then a member of the committee of direction of the German National Bank (de) for the next seven years, until 1922, and after its merger with the Darmstädter und Nationalbank (Danatbank), a member of the Danatbank's committee of direction. Schacht was a freemason, having joined the lodge Urania zur Unsterblichkeit in 1908.[4] During World War I, Schacht was assigned to the staff of General von Lumm, the Banking Commissioner for Occupied Belgium, to organize the financing of Germany's purchases in Belgium. He was summarily dismissed by General von Lumm when it was discovered that he had used his previous employer, the Dresdner Bank, to channel the note remittances for nearly 500 million francs of Belgian national bonds destined to pay for the requisitions.[5] After Schacht's dismissal from public service, he had another brief stint at the Dresdner Bank, and then various positions at other banks. In 1923, Schacht applied and was rejected for the position of head of the Reichsbank, largely as a result of his dismissal from von Lumm's service.[5] Despite the blemish on his record, in November 1923, Schacht became currency commissioner for the Weimar Republic and participated in the introduction of the Rentenmark, a new currency the value of which was based on a mortgage on all of the properties in Germany.[6] After his economic policies helped battle German hyperinflation and stabilize the German mark (Helferich Plan), Schacht was appointed president of the Reichsbank at the requests of president Friedrich Ebert and Chancellor Gustav Stresemann. In 1926, Schacht provided funds for the formation of IG Farben. He collaborated with other prominent economists to form the 1929 Young Plan to modify the way that war reparations were paid after Germany's economy was destabilizing under the Dawes Plan. In December 1929, he caused the fall of the Finance Minister Rudolf Hilferding by imposing upon the government his conditions for obtaining a loan.[3] After modifications by Hermann Müller's government to the Young Plan during the Second Conference of The Hague (January 1930), he resigned as Reichsbank president on 7 March 1930. During 1930, Schacht campaigned against the war reparations requirement in the United States. http://en.wikipedia.org/wiki/Hjalmar_Schacht