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Chasing Gold: The Incredible Story of How the Nazis Stole Europe's Bullion

Page 55

by George M. Taber


  Officials at the Banque de France were extremely helpful both before and after the week I did research in Paris. Didier Bruneel, the director of the excellent publication Cahiers anecdotiques de la Banque de France and the special counselor to the bank’s president, helped in many ways. He provided the first solid information about how the Soviet Union saved its gold, and also allowed me to use photographs he had collected for his own book Les Secrets de l’Or. When I arrived in Paris, Arnaud Manas, the head of the archives at the French National Bank, had just finished the defense of his doctoral thesis on the Vichy government’s gold policy. He gave me a copy of it and also helped me find my way through his archives.

  Paul Dostert in Luxembourg has done work on his own country’s gold during the war, and he gave him time both to explain what happened and point me to the archives. We also had a pleasant lunch at an outdoor café.

  A small team helped in Holland. Alexander Nieuwenhuis put together an excellent program that got me to the right people. Ronald Dijkstra, who was just finishing his own book on the Dutch story, spent a day walking around Rotterdam, retracing the steps of the soldiers who carried gold to a boat that hit a mine and sank and then visiting the site. We also visited the ship museum near the Hook of Holland, where officials told us more about the ship. Gerard Aalders, who has written an excellent book in Dutch about his country’s gold, answered all my questions over glasses of Dutch beer. Daphne Dupont-Nivet translated his book for me.

  Svetlana Chervonnaya in Moscow deserves all the credit for finding the right Russian documents and then translating them. It would have been impossible to do the Soviet chapter without her. She was also very helpful in unraveling the story of the shipment of Spanish gold to Moscow in 1936.

  In Britain, Robert Hart, who was a fellow journalist many years ago in Bonn, worked with me for a week combing the British National Archives outside London for cabinet records and ship logs.

  Central bankers have a reputation for being stuffy, but officials at banks from Portugal to Turkey, with many more in between, were generous in providing help in uncovering their stories. Most of the communication was done over the Internet. I would like to thank in particular Jenni Hellström at the Bank of Finland, who sent me the chapter from a history of her bank that dealt in detail with the Finnish story.

  Officials in national and central bank archives are the unsung people in the background. They helped find the right documents or photographs. Joseph M. Komljenovich, Julie Sanger, and Marja Vitti at the New York Federal Reserve opened up their collections during two long visits. Officials at the Franklin D. Roosevelt Library and the Harry S. Truman Library were helpful when I visited their archives. The William J. Clinton Library provided documents over the Internet. The staffs of the U.S. National Archives in College Park Maryland, the Banque de France, the Bundesarchiv in Berlin and Freiburg, the Bayerische Hauptstaatsarchiv in Munich, and at the British National Archives were particularly valuable. I made four long visits to the U.S. National Archives in College Park, MD, and Margaret Shannon and Candace Clifford also did work for me there. Peter Voskamp tracked down some crucial material at the newspaper collection of the Library of Congress in Washington. The staff at the Thomas J. Dodd Research Center at the University of Connecticut opened its wonderful collection of Nuremberg Trial documents. Andy Hollinger of the United States Holocaust Memorial Museum in Washington provided many useful photos from its collection.

  Librarians also were essential aides. I thank those at Brown University, University of Rhode Island, Stanford University, the New York Public Library, Princeton University, University of Connecticut, Harvard Business School, Vero Beach, and the Block Island Free Library.

  The most important assistance of all came from my wife Jean, who over several years read and edited many early versions of chapters, and from our daughter Lara, who diagnosed computer problems and also created the maps that accompany most chapters and designed the book’s photo pages. Both Jean and Lara were always there for me.

  Special thanks to Jennifer McCartney for very carefully proofreading the manuscript.

  I would also like to give special thanks to Harvey Klinger, my agent now for five books, and to Jessica Case and all the people at Pegasus Books.

  ILLUSTRATIONS

  Franklin D. Roosevelt in 1934 wrote a personal dedication to Henry Morgenthau, Jr., his close friend and partner in power: “For Henry from one of two of a kind.” Courtesy of the Franklin D. Roosevelt Photo Collection, Morgenthau Folder.

  In Munich in the early days of his rise to power, Hitler returns the Nazi Sieg Heil salute to members of his paramilitary units. They had a hypnotic dedication to their Führer. Courtesy of the Bundesarchiv Berlin Photo Collection.

  Adolf Hitler liked to get away with close aides at his mountain retreat outside the village of Berchtesgaden in the Bavarian Alps. From left to right: Hitler, Martin Bormann, who became his secretary, Hermann Göring, the head of the Luftwaffe, and Baldur von Schirach, the leader of the Hitler Youth organization. Courtesy of the Bundesarchiv Berlin Photo Collection.

  Hjalmar Horace Greeley Schacht considered himself a master of both economics and politics and mistakenly thought he could control Hitler. Schacht, the president of the Reichsbank, alone among the people around the Führer refused to wear the Nazi uniform. Courtesy of the Bundesarchiv Berlin Photo Collection.

  The Reichsbank headquarters in the heart of Berlin was a showpiece building for the new Nazi regime. Hitler personally presided over its groundbreaking in 1933. Courtesy of the Bundesarchiv Berlin Photo Collection.

  Hjalmar Schacht with two of his young protégés. In the center is Karl Blessing, and to the right Emil Puhl. Hitler fired Blessing in January 1939, but Puhl stayed on to the very end. Courtesy of the Bundesarchiv Berlin Photo Collection.

  This internal Nazi document explained the capture of the Belgian gold. At the time Germany had almost run out of bullion because of its heavy military spending. Courtesy of Bundesarchiv.

  Joseph Goebbels, the Reich Minister of Propaganda, enthusiastically gloated over the gold captured in Nazi-occupied countries. Reichsbank President Walther Funk was at the right. Courtesy of Bundesarchiv Freiburg, Belgium’s Contribution to the German War Economy, March 1, 1942.

  Sailors loading gold onto ships in the convoy that took both King George VI and British bullion to Canada in the spring of 1939. Courtesy of the Imperial War Museum Photo Collection.

  Royal Canadian Mounties protected the British gold that had arrived with the king and took it to the Bank of Canada. Courtesy of the Imperial War Museum Photo Collection.

  Sailors inspecting a box of French gold that was about to be shipped across the Atlantic Ocean to safety at the New York Federal Reserve in lower Manhattan. Courtesy of Banque de France, Keystone France.

  Holland’s Princess Juliana and her family, plus some of the Dutch gold, traveled in this central bank van from a palace in The Hague to a British ship waiting to evacuate them. Courtesy of the Dutch National Bank Photo Collection.

  The Nazi cruiser Blücher was torpedoed as it arrived at the Oslo fjord, which set back German plans to capture the Norwegian central bank gold on the first day of the invasion. Courtesy of the Norwegian Maritime Museum.

  The French shipped large amounts of gold to Halifax. Bullion was dropped off, and then those same ships turned around and took American war materiel back to Europe. Courtesy of Banque de France Photo Collection.

  The French got all of their gold out of the mainland, and much of it ended up in their African colonies, where locals helped them move it inland. Courtesy of Bank de France Private Photo Collection.

  After the Nazi invasion in June 1941, the Soviets moved their most valuable goods—gold, Lenin’s body, and Hermitage artworks—to safety beyond the Urals. Courtesy of David M. Trachtenberg.

  The note Treasury Secretary Morgenthau wrote in the middle of the night ordering that the gold stored at the New York Federal Reserve be moved immediately to Fort Knox. Courtesy of
Morgenthau Diaries, Franklin D. Roosevelt Presidential Library.

  Harry Dexter White was the key staff person for Treasury Secretary Henry Morgenthau. White’s influence grew greatly during the war, but no one in the government realized he was also a secret Soviet agent. Courtesy of the Library of Congress Photo Collection.

  Harry Hopkins traveled to Moscow in July 1941 to ask Joseph Stalin how the U.S. could help the Soviets militarily following the Nazi invasion. Famous photographer Margaret Bourke-White of Life magazine happened to be there on another assignment. She said Stalin had the coldest eyes she had ever seen. Courtesy of Getty Images.

  Dock workers in both Manhattan and New Jersey first unloaded boxes of bullion that had arrived from European central banks. Courtesy of the New York Federal Reserve Photo Collection.

  The precious cargo was then put into armored Brinks trucks and taken to the New York Federal Reserve Bank in Manhattan. The boxes were small but heavy. Courtesy of the New York Federal Reserve Photo Collection.

  So much was arriving, especially in 1939 and 1940, that the underground vault was soon filling up, and the staff had to work overtime just to verify the contents and check it all in. Courtesy of the New York Federal Reserve Photo Collection.

  Security was heavy at both ends of the shipments to Fort Knox. The gold was moved by escorted trucks to Pennsylvania Railroad train cars and then transferred by trucks to the vault. Courtesy of the United States Mint.

  Armed guards on watch at the railroad siding before the shipment arrived. Courtesy of the United States Mint.

  The U.S. Post Office had overall responsibility for moving the precious cargo safely south. Courtesy of the United States Mint.

  To ensure security, trucks pulled right up to the doors of the train before unloading. Courtesy of the United States Mint.

  The sight that American G.I.s saw after they blasted open the door. Reichsbank officials had carefully lined up bags of gold, each containing two bars, into long rows. Courtesy of the Harry S. Truman Presidential Library Photo Collection.

  General Eisenhower and his staff examined both the bags of bullion and the priceless museum art that the Nazis had hastily packed and sent south by train from Berlin. Courtesy of the Harry S. Truman Presidential Library Photo Collection.

  Colonel Bernard Bernstein examines the contents of a suitcase of valuables taken from inmates of Nazi prison camps. U.S. soldiers at first thought it was simple war booty, but the colonel knew it was from Jewish victims. Courtesy of the Harry S. Truman Presidential Library Photo Collection.

  A box of gold wedding rings discovered near the Buchenwald concentration camp in southern Germany. Courtesy of the Holocaust Museum Photo Collection.

  Refugees trying to flee Berlin in early 1945 after the bombing of the Reichsbank building in February.

  Hjalmar Schacht, in May 1945, at the Dachau concentration camp. The Nazis had arrested him in July 1944 after the attempt on Hitler’s life. Both photos courtesy of Bundesarchiv Berlin Photo Collection.

  INDEX

  Page numbers listed correspond to the print edition of this book. You can use your device’s search function to locate particular terms in the text.

  A

  A4, 234

  Aachen, 231–232

  Aalborg, German attack on, 178

  Abyssinian War, 285

  Acheson, Dean, 53, 56

  Addis Ababa, 367

  Adler (freight train), 420, 422

  Aeneid (Virgil), 1

  Agadir, Morocco, movement of French gold to, 315

  Agar, Augustus, 289–290, 295

  Agricultural Advisory Commission, Morganthau, Henry, Jr. as head of, 49

  Agriculture Adjustment Act (1933), 51

  Ahamed, Liaquat, 4–5, 59

  Albania

  demands for restitution, 430–431

  dispute with British over Nazi gold, 430–431, 449

  gold of, 365

  Italian conquest of, 197–203

  stolen gold of, 440

  Albanian Central Bank, gold of, 202–203

  Albert Canal, 231, 232

  Albert I, King of Belgium, 211, 233

  Alchemy, 2

  Alexander III, czar of Russia, 334

  Alfhild II, 190, 191, 192

  Algérie, 242

  Algiers, gold in, 316–317, 319

  Allied Gold Declaration, 387–388

  Allied gold pool, 429–430

  Alpenfestung (Alpine fortress), 395–396

  Altaussee, 417

  Amalienborg, German capture of, 178

  Amann, Max, 379

  American Agriculturist, Morganthau’s ownership of, 49, 57

  Amis, 424, 427

  Amsterdam, 210. See also Netherlands

  Dutch bullion at central bank in, 207

  Åndalsnes, 183, 184, 185–186, 187

  Angell, James, 429–430

  Anglo-French Purchasing Board, 162

  Ankara, Turkey, shipment of French gold to, 241

  Anschluss, 91, 95, 98–99, 103, 161, 430

  Ansiaux, Hubert, ix, 233–234, 236, 237, 238

  Anti-Bretton Woods offensive, 436

  Anti-Catholicism, 259

  Anti-Semitism, 27, 50, 121, 153, 260. See also Jews

  Antonov-Ovseyenko, Vladimir, 14

  Antwerp, 228

  Apolda, bank in, 409

  Aragaz, 277

  Archangel, 347, 348

  Archer, Ernest, 297, 298

  Ardennes forest, German offensive in, 206, 242, 392, 413

  Argentina, wartime activities of, 431

  Argonne Forest, Battle of, 243

  Army of Africa, Franco as commander of, 12

  Arnhem, 225

  Aryanization of the German economy, 385

  Ashkenazy Jews, 14

  Aspe, Francisco Méndez, 17, 21–23

  Attlee, Clement, 429

  Auboin, Roger, 113

  Auschwitz death camp, 356, 359

  Australia, gold production in, 437

  Austria

  Anschluss in, 91, 95, 98–99, 103, 161

  demands for restitution, 430

  DSK operations in, 70

  exchange rate in, 97, 98

  German takeover of, 86–103, 118–119, 130, 200

  gold holdings of, 99, 159, 440

  instability of, following World War I, 91

  Keppler, Wilhelm, as commissioner of, 92–93

  Nazi seizure of gold in, 101, 160, 229–230

  plebiscite in over union with Germany, 93, 94, 95, 96

  shipment of gold to Czechoslovakia, 99

  stolen gold of, 440

  takeover of iron and steel facilities in, 68

  under-valuation of currency of, 97

  Austria Central Bank, gold of, 99

  Austrian National Bank, 99

  Reichsbank absorption of, 100–101

  Austrian Nazi Party, 95

  Austro-Prussian War (1866), 24–25

  Autarky, 37. See also Self-sufficiency

  backing of, by I. G. Farben, 38

  Nazi party belief in, 37

  Schachtian system of, 39, 40–42, 64–65, 66, 386

  Autobahn, 36

  Azaña, Manuel, 9, 17

  Azzolini, Vincenzo

  attitude of, 370–371

  Bank for International Settlements and, 373

  as president of the Bank of Italy, ix, 364, 366–367, 368, 369, 372

  trial of, 373–374

  B

  Bad Godesberg, 108

  Badoglio, Pietro, 201, 364

  Bad Salzungen, 399, 400

  Bad Sulza, 417

  Bad Tölz, 400, 420

  Balkans, 322–332

  Soviet activity in, 316

  Baltic States, 151–157. See also countries in

  gold as problem in, 153–154

  mutual assistance pacts and, 152

  Bamako, gold in, 316

  Bank for International Settlements (BIS)

  Austrian gold in, 101


  Azzolini and, 373

  Baltic banks and, 154

  Beyen as president of, ix, 81, 82, 112–113, 114, 115

  central bankers and, 99

  Czech gold at, 111, 112, 115–117, 160

  establishment of, in Basel, Switzerland, 78, 80

  executives of, 81, 82, 83

  facilitation of German war reparations and, 79

  gold shipments to New York by, 167

  holding of gold reserves for member countries, 84

  Italian gold at, 365

  McKittrick as president of, x, 305, 366, 380, 418

  member banks of, 80

  multinational reputation of, 81

  Nazi battle for gold and, 84, 379–381, 442

  outbreak of World War II and, 84

  Puhl as delegate to board of, 356

  Romanian gold holdings at, 384

  Roosevelt, Franklin D.’s unhappiness with, 380–381

  Schacht as founder of, 78–79, 84

  sending of money to Gosbank, 153

  Bank Leu, sales of Nazi gold and, 442

  Bank of Bohemia and Moravia, 113, 116–117

  Bank of Canada, 286

  movement of gold to, 287, 296–297

  Bank of Danzig, 136

  Bank of Denmark, emptying of vaults at, 176

  Bank of England

  Austrian gold in, 101

  Belgian gold at, 231, 234

 

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