Later I was strongly opposed by these same people, when Germany was forced to discontinue making payments of her debts. But I wish to state here that I have always and on every occasion been against such a policy of debts. That was the one reason. The other reason was in the field of foreign policy. I had not only contributed my part toward the creation of the Young Plan but in 1929 I also assisted in the setting up of the Young Committee; the so-called Young Plan had resulted in a number of improvements for Germany, which the German Government was now sacrificing step by step during the subsequent negotiations at The Hague. Thus the financial and economic condition of the nation again deteriorated. I revolted against this, and for both these reasons I resigned my office as Reichsbankpräsident in protest, in March 1930.
DR. DIX: Gentlemen of the Tribunal, in this connection, may I call your attention to Exhibit Number Schacht-6 of my Document Book. If the Tribunal agrees, I should like, in order to shorten the presentation of documents during the examination of the witness, to call your attention to those documents which have a direct connection with the questions with which the witness is dealing. I believe that this arrangement will be agreeable to the Tribunal since it will shorten the presentation of documents. It is Document Number Schacht-6, on Page 12 of the German copy of my document book and on Page 8 of the English copy, Your Lordship, Exhibit Number Schacht-6. That is a record of the statements made by Dr. Schacht during the session of the subcommittee for monetary and credit matters on 21 October 1926. I believe it is not necessary for me to read these statements. They refer to the foreign debts which Dr. Schacht has just mentioned, and contain the same thoughts which Dr. Schacht has just expressed before the Tribunal, and are proof that these thoughts are not views ex post facto. Therefore, without reading it, I ask the Tribunal to take judicial notice of the whole of this document.
I shall return to my examination.
[Turning to the witness.] You had resigned your office as President of the Reichsbank. What did you do then?
SCHACHT: I went to the small estate which I owned in the country and lived there as a private citizen. Then in 1930 I made a trip to the United States. I departed shortly or immediately after the Reichstag elections of September 1930 and went to New York via London. There I lectured for about two months on questions which were presented to me by American friends.
DR. DIX: When did you first get in touch with the National Socialist ideology, with the Party, and with Hitler personally, and when, in particular, did you read the Party program and Hitler’s Mein Kampf?
SCHACHT: With the exception of a single occasion I have never in my life concerned myself with Party politics. Even at the age of 26 I was offered a sure electoral district in the Reichstag, which I did not accept, since I have never been interested in Party politics. My interest always lay in the field of economics and financial policy but, of course, for public affairs I always had a general interest, arising from a concern for the future of my country and my people.
Therefore, in 1919, I participated in the foundation of the Democratic Party.
May I say a few words here about my background and spiritual upbringing? My father, throughout his life, adhered to democratic ideals. He was a Freemason. He was a cosmopolitan. I had, and I still have, numerous relatives on my mother’s side in Denmark and on my father’s side in the United States, and to this day I am on friendly terms with them. I grew up among these ideas and I have never departed from these basic conceptions of Freemasonry and democracy and humanitarian and cosmopolitan ideals. Later I always remained in very close contact with foreign countries. I traveled much, and with the exception of Ireland and Finland there is no country in Europe which I have not visited. I know Asia down to India, Ceylon, and Burma. I went to North America frequently, and just before the Second World War broke out I intended to travel to South America.
I want to emphasize this in order to show that I was never interested in Party politics. Nevertheless, when in the elections of September 1930 Hitler’s party suddenly and surprisingly obtained 108 seats, I began to take an interest in the phenomenon; and on board ship going to the United States I read Mein Kampf and, of course, also the Party program. When I arrived on the other side the first question was what was my opinion about Hitler and the Party, because naturally everyone was talking about this event in Germany. In my first publication at that time—it was an interview—I uttered an unequivocal warning and said, “If you people abroad do not change your policy towards Germany, then you will soon have very many more adherents of Hitler in Germany than there are now.” Throughout that period of 2 months I spoke about 50 times in public meetings, and I always met with understanding in the question of reparations, the mistakes of the Versailles Treaty, and the economic difficulties of Germany, and I returned with the impression that the whole American attitude, the attitude of the American people toward us, was indeed rather friendly. Not on my initiative but by coincidence, I got in touch with the adherents of the National Socialist Party. A friend of mine, a bank director, invited me at the beginning of December 1930 to dine with him at his house and to meet Hermann Göring there. I did so and gained no really definite impression from Göring’s statements and conduct. He was in every respect reserved, modest, and well-mannered, and he invited me to his house in order to meet Hitler. At the beginning of January my wife and I dined with Göring and his wife one evening at their home, and on that occasion, Fritz Thyssen was also invited. It had been planned that Hitler should come also and talk with us. I say again now that Göring’s apartment was extremely modestly and simply styled. We had a plain pea soup and bacon and particularly Göring’s first wife made an excellent impression. After supper Hitler appeared, and the ensuing conversation was conducted in such a way that, let us say, 5 percent of it was contributed by us, and 95 percent by Hitler. What he said concerned national questions, in which he agreed absolutely with us. No extravagant demands were stated, but on the other hand the national necessities of Germany were definitely emphasized. In social questions Hitler expressed a number of good ideas; he was especially intent on avoiding class struggle and on eliminating strikes, lock-outs, and wage disputes by decisive intervention of the State in labor relations and the direction of economic affairs. There was no demand for abolishing private enterprise, but merely for influence in its conduct. It seemed to us these ideas were quite reasonable and acceptable. Aside from that, he revealed practically no knowledge in the field of economy and financial policy, though on that evening he did not claim to know anything about these subjects. He merely asked that we as representatives of economy should have understanding for his ideas and give him factual advice. That was the purpose of that evening.