How did Hitler Finance the War? November 29, 2007
Posted by cantueso in economics, german, law, politics, war.trackback
It is a good question. Germany had lost the first world war, had trouble getting back on its feet, and then came the American stock exchange disaster. People lined up in the street for free food even in the United States. This was when Hitler’s party gathered momentum. Where did the cash come from?
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In the beginning there was credit and financial support from industry. There was also some bullying of industry to get “donations”. Hitler’s book “Mein Kampf” sold as a bestseller worldwide. However, by the time he got elected Hitler was probably deep in debt.
Later, in power, Hitler’s finance minister Schacht designed a special currency. It was a German mark to be used only inside Germany, and it could be printed in large amounts just like food stamps.***
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There was not much to buy with that, and so people put their earnings on a savings account. Towards the end of the war they had nothing to eat, but many owned large bank deposits. These became worthless, because when the war was over there was nothing anymore that you could buy with Hitler’s money.
*** So there were two currencies side by side. One was for inside Germany only, and the other was for trips or business abroad subject to permission, and so the government could easily control and restrict the movements of every single citizen.
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………………………………………..Photos : 1929 NY stock exchange panic —- Hitler and Goering examining a stolen painting being brought in by their attendants —-Battle of Stalingrad . Above: Hitler at a Nürnberg rally in 1928.
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What are your sources for your above post? I understand this question is of crucial importance, and it has long been of concern to me how Hitler could promise work and keep his promise, which he evidently did, just like Mussolini before him.
My source was the autobiography of Hitler’s finance man, Schacht.
Wikipedia says that Schacht also founded a company that existed only on paper and issued drafts called MEFOs to pay for armaments. You’ll see that at http://tinyurl.com/9yfl37
Elsewhere I found that only Napoleon had been able to finance fifteen years of war without bankrupting his country. Apparently he did it by thoughtful looting. However, he also sold Louisiana to the United States, and that must have brought in cash. Didn’t he sell Louisiana the year he planned to invade Russia ?
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Added April 17, 2009Yesterday, I read in Speer’s diaries that Hitler’s early autobiography called Mein Kampf brought in lots of money as it was sold all over the world and allowed him to fiance operas and even opera buildings.