The civilian clothing already distributed, particularly under-clothes and shoes, have to be replaced very soon owing to their inferior quality. Their durability, in comparison with new articles is very limited.
Further it must be kept in mind that the employment of prisoners in special measures [Sondermassnahmen] A and B is a great strain on clothes and footwear and the expected durability must be decreased.
For the above-mentioned reasons, I would ask you, Gruppenfuehrer, to be so kind as to request that Reich Ministry of Economics to take the necessary steps so that further special allotments of yarn and leather may be assigned to meet the exceedingly great need for prisoners' clothing. Mention might also be made to the Reich Ministry of Economics that, up to the present, enormous quantities of rags of unusable civilian clothes, from the various actions, have been sent for disposal from Auschwitz and other camps to the Reich Ministry of Economics, and more are to follow.
Head of Administration
[initial illegible]
SS Sturmbannfuehrer
[Burger]
[3] including approx. 387,000 men and 225,000 women.
TRANSLATION OF DOCUMENT 1168-PS
Memorandum from SCHACHT to HITLER, [Identified by SCHACHT on 16 October 1945]
May 3, 1935
Financing of Armament
The following explanations are based upon the thought, that the accomplishment of the armament program with speed and in quantity is the problem of German politics, that everything else therefore should be subordinated to this purpose, as long as the main purpose is not imperilled by neglecting all other questions. Even after March 16, 1935 the difficulty remains, that one cannot undertake the open propagandistic treatment of the German people for support of armament without endangering our position internationally (without loss to our foreign trade). The already nearly impossible financing of the armament program is rendered hereby exceptionally difficult.
Another supposition must be also emphasized. The printing press can be used only for the financing of armament to such a degree, as permitted by maintaining of the money value. Every inflation increases the prices of foreign raw materials and increases the domestic prices, is therefore like a snail biting its own tail. The circumstance that our armament had to be camouflaged completely till March 16, 1935 and even since this date the camouflage had to be continued to a larger extent, making it necessary to use the printing press (bank note press) already at the beginning of the whole armament program, while it would have been natural, to start it (the printing press) at the final point of financing. In the portfolio of the Reichsbank are segregated notes (for this purpose: armament) of 3,775 millions and 866 millions, altogether 4,641 millions, out of which the armament notes amount to RM 2,374 millions (Status of April 30, 1935). The Reichsbank has invested the amount of marks under its jurisdiction, but belonging to foreigners in * * * notes of armament. Our armaments are also financed partly with the credits of our political opponents. Furthermore 500 million Reichsmarks were used for financing of armament, which originated out of Reichsanleihe [Federal loans] placed with savings banks. In the regular budget the following amounts were provided. For the budget period 1933/34 RM 750 millions, for the budget period 1934/35 RM 1,100 millions, and for the budget period 1935/36 RM 2,500 millions.