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  RC-49.

  14. Von Neurath to von Hindenburg, June 19, 1933, Neurath-11.

  15. Fbank to Bavarian Staatsminister of the Interior Adolf Wagner, September 6,

  1933, D-923. The SS was then part of the larger party formation, the SA.

  35

  ANTECEDENTS

  “which

  houses,

  as

  is

  known,

  almost

  exclusively

  criminal

  characters

  [¿as

  bekanntlich

  fast

  ausschliesslich

  Verbrechernaturen

  beherbergt].’^

  Still another consequence of the party's activities made itself felt in

  the

  economic

  sector.

  The

  party’s

  agitation,

  particularly

  the

  party-

  directed boycott, had unforeseeably disturbed the delicate balance of

  the German business world. On August 20, 1935, an interministerial

  conference on the economic effects of party action was held in the

  office

  of

  Reichsbankpräsident

  Schacht.

  The

  conference

  was

  attended

  by

  Interior

  Minister

  Frick,

  Finance

  Minister

  von

  Krosigk,

  Justice

  Minister

  Dr.

  Gürtner,

  Education

  Minister

  Rust,

  several

  Staatssekretäre, and Staatsminister Adolf Wagner in his capacity as the party's representative.16 17

  Schacht opened the discussion by pointing out that the “unlawful”

  activity against Jewry would soon have to end (dass das gesetzlose

  Treiben gegen das Judentum bald ein Ende nehmen müsse), or else he

  would not be able to cope with his task of economic rearmament. To

  give a few examples, the boycott chief, Streicher, was trying to force

  German firms to dismiss their Jewish representatives in foreign countries. Now, it could not be forgotten, Schacht continued, that these Jewish

  representatives

  were

  “especially

  skilful.”

  When

  the

  Jewish

  agent of Alliance Insurance in Egypt was subjected to party chicanery,

  he simply quit and took the business with him. The English had captured the market. Another example: In many cities, including Leipzig, Jews were not allowed in public baths. How was this going to work out

  during

  the

  Leipzig

  exhibition?

  Furthermore,

  this

  “unlawful

  activity”

  (gesetzlose

  Treiben)

  had

  provoked

  counteraction

  abroad.

  A

  French

  importer had annulled a large order he had placed with Salamander

  Shoes. The Bosch firm had lost its entire South American market. It

  was often said that one could do without the Jewish business, but

  whoever maintained that view, said Schacht, simply did not know the

  world. The Jews were needed even for importations, for the trade with

  rare products, needed by the armed forces, was in Jewish hands.

  This did not mean, Schacht said, that all “single actions” (Einzelak-

  tionen) against Jews were to be condemned. For example, he could see

  no objections to the display of signs reading “Jews not wanted.” Such

  signs could often be found in the United States, too. The case of

  barring Jews from the resort town of Bad Tölz was more doubtful. The

  16. Wagner to Frank, November 29, 1933, D-926.

  17. Summary of Schacht conference on Jewish matters, held August 20, 1935,

  dated August 22, 1935, NG-4067. The Reichsbank, a government institution, was the

  central bank.

  36

  ANTECEDENTS

  party’s ejection of Jews from Langenschwalbach was an “extremely

  doubtful" case. But utterly impossible was the case that had occurred

  in Amswalde. There the director of the local Reichsbank office, one of

  Schacht's own men, had bought something from a Jew who had served

  as a sergeant in the war and who had received the Iron Cross. Thereupon,

  Streicher

  had

  displayed the picture of the Reichsbankrat on

  three public bulletin boards," and under the picture had appeared the

  words:

  “Whoever

  buys

  from

  a

  Jew

  is

  a

  traitor

  to

  the

  people”

  (Volksverräter). Schacht had immediately protested to the local party

  official and had demanded an apology to be displayed on the same

  bulletin boards. Then Schacht had sent a copy of his protest to the

  highest regional party authority, Gauleiter Kube. Schacht's wishes had

  not

  been

  satisfied.

  Consequently

  he

  had

  ordered

  that

  the

  local

  Reichsbank office be closed. But Schacht was especially disappointed

  that Gauleiter Kube had not found it necessary to send a reply.

  Interior Minister Frick was the next speaker. He too was of the

  opinion that “wild single actions" (wilde Einzelaktionen) against Jews

  would have to stop. His ministry was already working on a number of

  decrees. The Jewish question was going to be solved in a perfectly legal

  manner.

  Staatsminister Wagner, the party’s representative, spoke next. He

  too was against these “wild” actions. But the people would stop spontaneously, he said, as soon as they noticed that the Reich government was taking measures against the Jews.

  A representative of the Propaganda Ministry then put in that from

  his standpoint, nothing was wrong with Streicher’s condemnation of

  the Reichsbankrat who had made a purchase from a Jew. Schacht

  replied with indignation that he simply had never heard of such an idea.

  As a non-party member he had a right to buy where he pleased. He

  knew of no laws to the contrary. The Propaganda Ministry's representative evidently did not know that even government offices were placing orders with Jews. The Amswalde incident was “a case of the highest

  perfidy

  and

  meanness

  [ein

  Fall

  höchster

  Perfidie

  und

  Gemeinheit].”

  At the conclusion of the meeting, the conferees made the following

  decisions: Some law was to be enacted to prevent the establishment of

  new Jewish enterprises; the government was to make an effort to place

  its orders only with German enterprises; Wagner was to submit some

  party suggestions for more laws. Needless to say, these resolutions

  were not very important. The decision on new Jewish enterprises was 18

  18.

  Stürmerkasten—used by Streicher to publicize the more defamatory materials

  in his paper.

  37


  ANTECEDENTS

  deadwood, the placement of business orders with German firms was

  decreed later, and the additional party suggestions did not materialize.

  It is important to stress at this point what Schacht was protesting

  against and what he was trying to do. Schacht did not oppose anti-

  Jewish action. He opposed “wild” party measures. He preferred the

  “legal” way, that is, certainty instead of uncertainty. It was uncertainty

  that hurt business. Schacht never opposed anti-Jewish decrees;19 20 21 to the

  contrary, he welcomed them and was impatient when they were not

  issued quickly enough," for, basically, he wanted “clarity” in order that

  he might cope with the business mechanism.

  On October 4, 1935, even Streicher declared that the Jewish question was being solved, “piece by piece,” in a legal manner. Whoever, said Streicher, recognized the tremendous importance of these decrees

  would not allow himself to be dragged into ridiculous chicanery. “We

  don't smash any windows and we don’t smash any Jews. We don't

  have to do that. Whoever engages in single actions [Einzelaktionen] of

  that kind is an enemy of the state, a provocateur, or even a Jew [oder

  gar ein Jude]."1' But in November 1938, something happened that completely upset the applecart.

  Certain sections of the party became restless and suddenly started

  a riot that had far more serious consequences than the “wild” actions of

  1933. It must be remembered that this outburst occurred in the sixth

  year of the Nazi regime. There was no longer any need to remind the

  bureaucracy

  of

  the

  “people’s

  wishes.”

  The

  destruction

  process

  was

  well under way. Anti-Jewish decrees by the dozen had already been

  published or were in preparation. Today we know the real reason for

  these riots. The party, apart from the SS formation, no longer had

  important functions in Jewish affairs. This was true especially of the

  uniformed

  brownshirts

  (the

  SA)

  and

  the

  propaganda

  apparatus. The

  1938 riots were a bid for power. The party men wanted to play a role in

  the actual implementation of the anti-Jewish destruction process, but

  they failed miserably.

  On November 9, 1938, a minor German Foreign Office official,

  Legationsrat vom Rath, was assassinated by a Jew, Herschel Gryn-

  zpan, in the German Embassy in Paris. This was not the first assassination of its kind. About three years before, a Jewish rabbinical student had fatally shot the leader of the Swiss branch of the Nazi party.3 The

  19. Interrogation of Hjalmar Schacht, October 17,1945, PS-3729. In this testimony,

  Schacht pointed out that the anti-Jewish decrees were “not important enough to risk a

  break” with Hitler.

  20. Schacht to Frick, October 30, 1935, protesting against delays in the issuance of

  certain anti-Jewish implementing regulations, NG-4067.

  21. Speech by Streicher before German Labor Front mass meeting. October 4,

  1935, M-35. The German Labor Front was a party organization.

  38

  ANTECEDENTS

  Swiss assassination did not have any repercussions, but the Paris incident was seized upon as an opportunity for party action. On the evening of

  November

  9,

  1938,

  the

  Propaganda

  Minister,

  Dr.

  Josef

  Goebbels, told a group of party leaders in Munich that riots had started

  against

  Jews

  in

  the

  districts

  of

  Kurhessen

  and

  Magdeburg-Anhalt.

  Upon his suggestion, said Goebbels, the Führer (Hitler) had decided

  that in the event that the riots spread spontaneously throughout the

  Reich, they were not to be discouraged. The party leaders listened

  attentively. To them Goebbels’s statement had only one meaning: the

  party was not to appear outwardly as the architect of the demonstrations, but was to organize and execute them.”

  The riots spread with lightning speed. The SA formation sent out

  its brigades to bum down systematically all Jewish synagogues in the

  country.“ The black-uniformed SS and the regular police had not been

  notified. But late during the same evening, Gruppenführer Wolff, Chief

  of Himmler’s Personal Staff, was still in his office, attending a conference. A call came at 11:15 p.m. to the effect that Goebbels had ordered a pogrom. Wolff immediately contacted Himmler. The chief of the SS

  and Police arrived at 1 a.m. on November 10 and ordered his forces

  into action to prevent large-scale looting and, incidentally, to fill his

  concentration camps with 20,000 Jews." Having attended to the needs

  of the hour, Himmler dictated a file memorandum in which he expressed his personal reactions to the Goebbels pogrom. The memorandum read

  somewhat

  as

  follows:

  “The

  order

  was

  given

  by

  the

  Propaganda Directorate, and I suspect that Goebbels, in his craving for

  power, which 1 noticed long ago, and also in his empty-headedness

  [Hohlköpfigkeit] started this action just at a time when the foreign

  political situation is very grave.... When I asked the Führer about it, 1

  had

  the

  impression

  that

  he

  did

  not

  know

  anything

  about

  these

  events.”“

  Himmler’s reaction appears to have been relatively mild. After all,

  he too had something to gain from the action, although he generally 22 23 24 25 26

  22. David Frankfurter, "I Kill a Nazi Gauleiter,” Commentary, February 1950,

  pp. 133-41. The assassinated Nazi. Wilhelm Gustloff, actually was not a Gauleiter but a

  Landesgruppenleiter. A Gauleiter was a party regional chief within the Reich: a Landesgruppenleiter was the party leader of German citizens in a foreign country.

  23. Report by chief of the forty Court Walter Buch to Hermann Goring, February 13,

  1939, PS-3063.

  24. See six reports by SA-Brigaden, dated November 10 and November 11, 1938.

  on destruction of synagogues, PS-1721.

  25. Affidavit by Hauptsturmführer Luitpold Schallenneier, July 5, 1946, SS(A)-5.

  For SS ranks, see chart in Appendix A. Schallenneier was Wolff's personal assistant.

  A reference to 20.000 arrests is made in the report by Security Police Chief Hey-

  drich to Goring, November 11, 1938, PS-3058.

  26. Affidavit by Schallermeier, July 5, 1946, SS(A)-5.

  39

  ANTECEDENTS

  preferred to make his own decisions. But the reaction of the other top

  Nazis

  was

  not

  so

  indifferent.

  When

  Economy

  Minister

  Funk

  (Schacht's successor) heard about the riots, he called up the Propaganda Minister on the telephone and spoke to him in the following vein: Are you crazy, Goebbels? To make such a mess of things [Sch
weinreien]!

  One has to be ashamed to be a German. We are losing our whole prestige

  abroad. I am trying, day and night, to conserve the national wealth, and

  you throw it willy-nilly out of the window. If this thing does not stop

  immediately, you can have the whole filthy mess [werfe ich den ganzen

  Dreck hin].21

  Goring was completely unaware of what was going on because, at

  the time of the instigation of the riot, he was on board a train. The news

  was communicated to him upon his arrival at the Berlin railway station.

  Goring lost no time complaining to Hitler that Goebbels was very

  irresponsible, that the effects on the economy, especially the “spirit of

  conservation," would be disastrous and so forth. Hitler “made some

  apologies for Goebbels” but agreed that such events were not to be

  repeated. Later the same day (November 10), Goring and Hitler had a

  second conference. This time Goebbels was also present. The propaganda chief began “his usual talk.” This was not the first murder committed by a Jew; such things could not be tolerated, and so forth. Then Goebbels suggested something that stunned Goring. The Jews were to

  pay a fine. “Indeed, he wished that each Gau (party district] should

  collect such a fine, and he named an almost incredibly high sum.”

  Goring countered that such a procedure was utterly impossible. Since

  Herr Goebbels was also the Gauleiter (regional party chief) of Berlin,

  and since he had a large number of Jews right in his own Gau, he was

  obviously “the most interested party.” If such measures were to be

  taken, the state would have to collect the money. Hitler agreed, and

  after some discussion “this way and that,” the sum of one billion

  reichsmark was agreed upon.“ 27 28

  27. Affidavit by Louise Funk, November 5, 1945, Funk-3. Affiant, the wife of the

  Economy Minister, claims to have overheard the conversation. Whether Funk, a former

  Staatssekretär in the Propaganda Ministry, expressed such strong sentiments to his former boss may be open to some question. Mrs. Funk was, however, the only witness.

  28. Testimony by Göring, Trial of the Major War Criminals IX, 276-78. At the

  official rate of exchange, one billion reichsmark equaled $400,000,000.

  In neighboring Italy, Foreign Minister Ciano noted in his diary an interesting private

  comment on the “fine" by Benito Mussolini: “The Duce is critical of the German decision

  to impose a line of a thousand million marks. He agrees with reprisals of a personal

  nature but considers the valuation of vom Rath's life at seven thousand million lire to be

  excessive. Or rather absurd." Galeazzo Ciano, Ciano's Hidden Diary 1937-1936 (New

  York, 1953), entry for November 13. 1938. p. 194. More will be said about the “fine’' in

 

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