On 27 June, the Law for the Establishment of the Undertaking “Reich Autobahn” came into force. Three days later, Todt was appointed inspector general of German roadways. On 23 September, Hitler personally dug the first turf for the stretch of motorway between Frankfurt and Darmstadt—a gesture with the propaganda aim of suggesting the Führer was leading the way in what was called the “labour battle.”217 But the short-term effect on unemployment of building the autobahn was only marginal. In 1933, no more than 1,000 men were employed building the first stretch of motorway, and a year after Todt’s appointment only 38,000 had been given work.218 On the one hand, the number of newly registered cars almost doubled in 1933, compared with the previous year, and the number of people employed in the car industry had also grown substantially; on the other, compared with the United States, the level of car ownership in Germany was low. The main reason, as Hitler complained in a meeting to discuss the financing of the autobahn in September 1933, was that the German car industry had not adapted its production to reflect people’s actual income. “They keep building cars that are too heavy and are a long way from realising the goal of a car ranging in price from 1,000 to 1,200 reichsmarks,” Hitler said.219 Thus it was that in 1934 the idea was born of producing an affordable small car, the Volkswagen—the people’s car—that would be affordable to the working classes.220
The strongest long-term stimuli driving economic recovery and the decrease in unemployment came from the rearmament of Germany, which Hitler began pursuing immediately after being named Reich chancellor. As early as February 1933, Hitler was stressing to Germany’s military and his cabinet that rearmament would be made an absolute priority. “Sums in the billions” would have to be found, Hitler declared, because “the future of Germany depends solely and alone on the reconstruction of the Wehrmacht.”221 Hitler did not think then that Reichsbank President Hans Luther was flexible enough to support accelerated rearmament with expansive monetary and credit policies, so in March 1933 he appointed Hjalmar Schacht to the post. This was also an expression of gratitude for the valuable services Schacht had rendered to the National Socialists before 1933.222 The package of expenditures drawn up for the military totalled an astronomical 35 billion reichsmarks. The sum dwarfed that allocated for civilian job-creation measures and was to be placed at the government’s disposal in annual instalments of 4.4 billion reichsmarks over the course of eight years.223 To finance such expenses, Schacht came up with a deviously clever system for procuring money. In the summer of 1933, for the purpose of financing arms contracts, four large industrial and armaments companies—Gutehoffnungshütte, Krupp, Rheinstahl and Siemens—formed a dummy firm called Metallurgische Forschungsgesellschaft (Mefo—Metallurgic Research Society), which issued bills of exchange, guaranteed by the state and discounted by the Reichsbank, to the arms producers. The first Mefo bills were drawn in the autumn of 1933, but in line with the pace of rearmament the first major payments only began in April 1934.224 That initiated a spiralling process of financing a rearmament industry on credit, which in the long term would have led to serious economic defaults.
“Never stand still—always move forwards!” That was Goebbels’s concise formulation in November 1933 of the action-first principle that had guided the Nazis since they took power on 30 January.225 The principle reflected Hitler’s social Darwinist mantra that constant struggle would be the vital elixir of his movement. Like all charismatic leaders, Hitler faced the problem that his power, which he owed to an extreme and extraordinary situation, might wear thin over time and be subjected to a process of “normalisation.”226 Thus while the tempo of his power consolidation and development varied, things were never allowed to come to a standstill. Hitler may have made more progress and achieved easier triumphs than he had dared imagine in his wildest dreams, but he was still quite some way from being the “Führer” whose dictatorship was unquestioned. While their positions were growing weaker, he still had to take into consideration the power of the military and the Reich president. And above all, within the Nazi movement itself, the SA was becoming a problem.
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When the Nazis had consolidated their power in the summer of 1933, the Brownshirts saw themselves robbed of their most important raison d’être: terrorising and neutralising the Nazis’ political opponents. Consequently, in early August, Göring rescinded the decree from the preceding February which made the SA an auxiliary police force. Politically there was no point any more to the Brownshirts’ violent activism, and the Nazi leadership viewed it as counter-productive. Many SA men were disappointed. They had hoped that when the party achieved power, their personal situation would change for the better overnight, and these people now felt that the “party bigwigs” and their “reactionary” supporters had cheated them of the spoils of victory.227 Within the SA itself tensions were rising between the “old fighters” and new members who had joined the paramilitary group in hordes since the May 1933 moratorium on new NSDAP members. On 30 January 1933, the SA had fewer than 500,000 members. By the summer of 1934, that number—which now also included incorporated nationalist militias, above all the Stahlhelm—had risen to 4.5 million. This enormous influx of newcomers could hardly be integrated, and increased the potential for dissatisfaction.228 Calls for a “second revolution” were growing.
In June 1933, SA Chief of Staff Ernst Röhm made reference to this negative mood in an article he published in the monthly journal Nationalsozialistische Monatshefte. The “national uprising,” wrote Röhm, had thus far “only travelled part of the way up the path of German revolution.” The SA, he asserted, “would not tolerate the German revolution falling asleep or being betrayed by non-fighters halfway towards its goal.” At the end of his article, Röhm issued a direct threat to all “wimpy bourgeois souls”; he wrote, “Whether they like it or not, we will continue our fight. If they finally understand what is at stake, then with them! If they refuse to understand, then without them! And if need be, against them!”229 With that the perennial structural problem in the relationship between the NSDAP and the SA had re-emerged. Röhm made it unmistakably clear that the SA did not want to be reduced to a mere recipient of commands from the party leadership. On the contrary, he laid claim to a position of power for himself and his organisation within the Third Reich. The mass influx of new SA members played into his hands since it added weight to his demands vis-à-vis the much smaller Reichswehr. Röhm envisioned transforming the SA into a kind of militia army, thereby challenging the regular army’s monopoly on the right to weaponry and threatening to subordinate the Reichswehr to the SA. This was a prospect that alarmed both the military leadership and Hitler, who had concluded an alliance with Germany’s generals in February 1933.
The problems presented by the SA were inseparably connected to the question of who would succeed Hindenburg. In early October 1933, the Reich president turned 86. It was obvious that he could die at any time. When the time came, Goebbels had insisted at a meeting on the Obersalzberg in late March, Hitler himself should succeed him. But Hitler was undecided. “He is not really up for it,” Goebbels noted.230 By July, having conferred with Reich Chancellery State Secretary Hans Heinrich Lammers, Goebbels had decided: “Hitler cannot tolerate a Reich president hanging over him, even as a figurehead. Both offices must be united in a single person.” After a “long discussion about fundamental principles” on 24 August, Hitler and Goebbels agreed that the positions of Reich chancellor and Reich president should be merged.231 Two days later, Hitler travelled to East Prussia to visit Hindenburg in Neudeck and take part in a celebration at the Tannenberg memorial on 27 August. He considered it “a blessing and gift of providence,” Hitler proclaimed, to be able to express thanks to the field marshal “in the name of the German people…on the soil of the most glorious battlefield in the great war.” Hitler also used the occasion to give Hindenburg title to the Prussian domains of Langenau and the Preussenwald forest and declare the Neudeck estate exempt from taxes.232
Hitler could only succeed Hindenburg with the support of the Reichswehr since the Reich president was the army’s commander-in-chief. That alone was reason enough to keep Röhm in his place. But as always when faced with difficult decisions, Hitler played for time. Initially he tried to make Röhm more obedient with a combination of verbal attacks and solicitous gestures. On the one hand, in his speech to his Gauleiter on 6 July, he left no doubt that he would “drown, if necessary, in blood” any attempt at a “second revolution.” On 28 September, he repeated this threat in front of the same audience. “He knew all too well that there were many dissatisfied creatures whose ambition could not be sated,” one report of that speech read. “As a matter of course he could show no consideration for such ambitions. He would not sit back and watch the activities of such subjects for very much longer. At some point he would suddenly intervene.”233 On the other hand, in December, Hitler invited Röhm to join his cabinet as a minister without portfolio, the same distinction that Hess enjoyed. And on New Year’s Eve, he sent a letter to his “dear chief of staff,” gushing with thanks for the “eternal services” he had performed for “the National Socialist movement and the German people.”234
Nonetheless in early 1934 it became increasingly clear that Hitler could not postpone a decision for much longer. The mood of dissatisfaction had spread beyond SA circles. The national euphoria of the first few months of the regime had yielded to a certain sobriety. Even Goebbels had to acknowledge: “Negative mood in broad circles because of grandiosity, price hikes, state intervention in agriculture, etc.”235 Workers were angry that food prices were rising while their wages stagnated. Farmers did not like the Hereditary Farm Law, which restricted their freedom in running their property. Middle-class retailers still felt subjected to unfair competition from large department stores. And economic recovery was not continuing as fast as many people had hoped. Disappointment at unfulfilled material desires was combined with increasing bitterness at corruption and nepotism. The latter was directed at party functionaries who had seized the moment to claim lucrative posts. Hitler himself was largely exempt from criticism, however. The reports of the SPD in exile in Prague, which were based on information from sources within Germany, recorded as typical the sentiments of a Munich resident: “Our Adolf is all right, but those around him are all complete scoundrels.”236
Nor did the growing dissatisfaction escape the notice of foreign diplomats. It was unmistakable, reported the Danish envoy, Herluf Zahle, in April 1934, that “the enthusiasm greeting the government has cooled to some degree.”237 Jews who were being harassed in Germany took heart. “People are no longer as convinced that what’s going on right now will last for ever,” Victor Klemperer wrote in his diary in early February 1934. “There’s a gnashing of teeth going through all too many classes, professions and faiths.”238 In fact, the dissatisfaction rarely went beyond general grumbling. But Goebbels took it seriously enough to launch a counter-offensive in May aimed at the “pessimists, moaners and critics.”239
The decline in the public mood formed the background to the growing conflict between the Reich government and the military, on the one side, and the SA on the other. In a speech he gave to his Gauleiter in Berlin on 2 February 1934, Hitler once again attacked the SA leadership without naming any names. Only “fools” could maintain that the “revolution was not yet at an end,” Hitler fumed, which was merely a way of trying “to put themselves in certain positions.”240 The day before, Röhm had sent Werner von Blomberg a letter in which he demanded that the SA take over the function of defending the country and that the Reichswehr be reduced to a mere training army.241 The military leadership saw this as an open declaration of hostility and began to draft its own “Guidelines for Working with the SA,” in which the Brownshirts were degraded to the role of offering preliminary military instruction and helping to monitor the Reich’s borders. In a demonstration of loyalty towards the Nazi leadership, at a meeting of military commanders on 2 and 3 February, Blomberg announced that the Reichswehr would require officers to prove their Aryan heritage and would adopt the swastika as an official military emblem.242
The time had come for Hitler to make a decision, and he did. At a meeting with the heads of the Reichswehr and the leaders of the SA and SS on 28 February, he openly rejected Röhm’s ideas. A militia of the sort suggested by the SA chief of staff, Hitler said, “was unsuitable even for the smallest national defensive action,” to say nothing of the future war for “living space” he again put forward as a vision. For that reason, he was determined to raise “a people’s army, built up on the foundations of the Reichswehr, of thoroughly trained soldiers equipped with the latest weaponry.” The SA was to subordinate itself to his orders. There could be no doubt, Hitler concluded, that “the Wehrmacht is the only armed force of the nation.”243 Röhm pretended to give in, but that evening he vented his rage at the “ignorant private.” He did not intend to stick to what had been agreed, Röhm raged. Hitler was “without loyalty” and had to be “sent on holiday at the very least,” the SA leader was reported as saying. One of those present, SA Obergruppenführer Viktor Lutze, passed on these utterances to Hitler, who responded tellingly: “We will have to let this matter ripen.”244
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As early as January 1934, Hitler had ordered the first head of the Gestapo, Rudolf Diels—by Diels’s own account—to collect incriminating material against the leaders of the SA. An identical order was issued to Reichswehr departments.245 On 20 April, Göring appointed Heinrich Himmler, who had taken over the political crimes divisions in the police forces of almost all the German states in the preceding months, as the inspector of the Prussian Secret State Police. He and Reinhard Heydrich, who was made director of the State Police Office, moved from Munich to Berlin. The Gestapo now began to cooperate more intensely with the intelligence department in the Reichswehr Ministry, swapping information about the SA. The net around Röhm and his associates was gradually drawn tighter and tighter.246
In the battle for power that commenced with Röhm, Hitler had no qualms about publicising the former’s homosexuality and using it as a weapon against him. In mid-May, he had a one-to-one discussion with Goebbels, after which the propaganda minister noted: “Complaint about Röhm and his personnel policies under paragraph 175. Revolting.”247 Previously Hitler had shielded Röhm from attacks on his well-known homosexual leanings. In a decree in early February 1931, Hitler had particularly emphasised that the SA “was not a moral institution for the education of well-born daughters but a band of rough-hewn fighters.” Members’ private lives were only an issue “if they ran truly contrary to the National Socialist world view.”248 Moreover, during the presidential elections in March 1932, when the left-wing Welt am Montag and Münchener Post newspapers published compromising letters written by the SA chief of staff, Hitler had sworn: “Lieutenant Colonel Röhm will remain my chief of staff. Even the dirtiest and most repulsive smear campaigns will not change that fact in the slightest.”249 In the spring and early summer of 1934, however, Hitler tried to use Röhm’s homosexuality as a noose to hang him with.
In early June, it appeared as if the situation might relax somewhat. In a personal conversation, Hitler extracted from Röhm a promise to send the SA “on holiday” for the entire month of July and to take a cure himself at the Bad Wiessee spa on Tegernsee Lake. But this discussion was not a genuine attempt at reconciliation. Hitler continued to mistrust Röhm’s intentions. Goebbels noted: “He no longer trusts the SA leadership. We all need to be on our toes. Let’s not feel too secure.”250 Röhm, too, only pretended to be placated. At an evening of partying in the SA’s main headquarters on Berlin’s Standartenstrasse, Ernst Hanfstaengl witnessed the chief of staff, intoxicated, “cursing in the wildest fashion” the Reichswehr, which had drawn Hitler over to their side.251
But it was Franz von Papen, and not anything the SA did, who caused the situation to come to a dramatic head in June 1934. A group of young conservatives—led by Papen’s
speechwriter, Edgar Julius Jung, his press director, Herbert von Bose, and his personal assistant, Günther von Tschirschky—had coalesced around the vice-chancellor. They saw the tensions within the Nazi movement as a chance to curb Hitler’s demands for absolute power and to steer the regime in the more moderate direction of a restored monarchy.252 The ambitions of the Papen circle were no secret to the Nazi leadership. In April they began to suspect that Papen was positioning himself to succeed Hindenburg, who had contracted a bladder infection the previous month and would withdraw completely to his Neudeck estate that June.253 Another thorn in the side of Hitler and his entourage was the fact that Papen’s office was increasingly becoming a focal point for complaints about the regime’s dictatorial exercise of power. “Papen is the true complaints office,” Goebbels fumed on 13 June.254
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