SCHACHT: In the Reichsbank, the Leadership Principle was never applied; I rejected the Leadership Principle for the Reichsbank. The Reichsbank was governed by a group of men all of whom had an equal power to vote and if there was a “tie,” the vote of the chairman was the decisive vote, and beyond that the chairman had no rights in this board.
DR. DIX: You are familiar with the affidavit of the former Reichsbank Director Puhl. Did—I put the question taking into consideration the contents of this affidavit with which the Tribunal is acquainted—Puhl also participate in giving financial help from the Reichsbank for rearmament?
SCHACHT: Herr Puhl participated in all decisions which were made by the Reichsbank Directorate on this question and not once did he oppose the decision reached.
DR. DIX: It is known to you that the Reichsbank’s method of financing consisted in the discounting of the so-called mefo bills. The Prosecution have discussed this fact in detail and the afore-mentioned affidavit signed by Puhl says that this method made it possible to keep the extent of rearmament secret. Is that correct?
SCHACHT: We cannot even talk about keeping the armament a secret. I call your attention to some excerpts from documents presented and submitted by the Prosecution themselves as exhibits. I quote first of all from the affidavit by George Messersmith, dated 30 August 1945, Document Number 2385-PS, where it says on Page 3, Line 19: “Immediately after the Nazis came into power they started a vast rearmament program.” And on Page 8 it says: “The huge German armament program which was never a secret....”
Thus, Mr. George Messersmith, who was in Berlin at the time, knew about these matters and I am sure, informed his colleagues also.
I continue quoting from Document Number EC-461. It is the diary of Ambassador Dodd, where it says, under 19 September 1934, and I quote in English for I just have the English text before me:
“When Schacht declared that the Germans are not arming so intensively, I said: Last January and February Germany bought from American aircraft people one million dollars worth of high-class war flying machinery and paid in gold.”
This is from a conversation between Dodd and myself which took place in September 1934 and he points out that already in January and February 1934 war aircraft...
[The proceedings were interrupted by technical difficulties in the lighting system.]