DR. DIX: And what did he say?
GISEVIUS: I told Schacht that we were inevitably drifting towards radicalism, and that it was doubtful whether, the way things were going, the end of the present course would not be inflation, and, that being so, whether it would not be better if he himself were to bring about that inflation. That would enable him to know beforehand the exact date of such a crisis, and together with the generals and anti-radical ministers make timely arrangements to meet the situation when it became really serious. I said to him, “You should bring about that inflation; you yourself will then be able to determine the course of events instead of allowing others to take things out of your hands.” He replied, “You see, that is the difference which separates us: You want the crash, and I do not want it.”
DR. DIX: From that, one might draw the conclusion that at that time Schacht still believed that the crash could be averted. What reasons did he give for this view?
GISEVIUS: I think that at the time the word “crash” was too strong for him. Schacht was thinking along the traditional lines of former governments, but he saw that here and there a change had come about—especially since Brüning’s time—by emergency laws and certain dictatorial measures. But as far as I could see at the time, and during all our subsequent conversations, uppermost in his mind was still the idea of a Reich government which met and passed resolutions, where the majority of ministers were bourgeois, and where at a given moment—which might be sooner or later—one might steer a radically changed course.
DR. DIX: What was his attitude towards Hitler at that time?
GISEVIUS: It was quite clear to me that at that time he still thought very highly of Hitler. I might almost say that at that time Hitler was to him a man of irreproachable integrity.
THE PRESIDENT: What time are you speaking of?
GISEVIUS: I am now speaking of the time of my first meetings with Schacht, at the end of 1934 and the beginning of 1935.
DR. DIX: What was your profession at that time? Where were you? Where did you work?
GISEVIUS: I had succeeded in leaving the Reich Ministry of the Interior in the meantime and had been transferred to the Reich Criminal Office, which was in the process of being formed. When we realized that the Gestapo were extending their power, we believed we could establish some sort of police apparatus side by side with the Gestapo—that is, purely criminal police. My friend Nebe had been made Chief of the Reich Criminal Department to build up a police apparatus there which would enable us to resist the Gestapo if need be. The Ministry of the Interior gave me the task of organizing and sent me to this government office about to be formed, to give advice for its establishment.