quarta-feira, 22 de fevereiro de 2012

Fundador do Megaupload é solto após um mês sob custódia



O fundador do site de compartilhamento de arquivos Megaupload.com foi solto sob fiança nesta quarta-feira (22) após um mês sob custódia, em meio aos preparativos para uma audiência de extradição nos Estados Unidos envolvendo acusações de pirataria na Internet e lavagem de dinheiro.
Fundador do Megaupload Kim Dotcom deixa tribunal depois de fiança ter sido concedida na Austrália (Foto: AFP)Fundador do Megaupload Kim Dotcom deixa tribunal depois de fiança ter sido concedida na Austrália (Foto: AFP)
O alemão Kim Dotcom, que tem residência na Nova Zelândia e também é conhecido como Kim Schmitz e Kim Tim Jim Vestor, foi preso em 20 de janeiro a pedido de autoridades norte-americanas, junto de outras três pessoas.
Fundador do Megaupload é solto na Nova Zelândia
Segundo a acusação, Dotcom comandava um grupo que lucrou 175 milhões de dólares desde 2005 ao copiar e distribuir, sem autorização, músicas, filmes e outros conteúdos protegidos por direitos autorais.
No início deste mês, uma corte da Nova Zelândia negou recurso para Dotcom ser libertado sob pagamento de fiança, concordando com a promotoria sobre o risco de que ele pudesse tentar fugir antes da audiência para extradição.Os advogados de Dotcom dizem que a empresa apenas oferecia armazenamento online e que ele nega veementemente as acusações.
Kim Dotcom foi solto nessa quarta-feira (22) na Nova Zelândia (Foto: Reprodução/Dawn)
Nesta quarta-feira, o juiz Nevin Dawson concedeu a fiança sob condições rigorosas, alegando que nenhuma nova evidência de recursos secretos foi encontrada.

UE busca parecer legal sobra acordo anti-pirataria



BRUXELAS, 22 Fev (Reuters) - O braço executivo da União Europeia disse nesta quarta-feira que submeterá para o mais alto tribunal do bloco um contestado acordo global para conter a pirataria online, a fim de saber se cumpre com os direitos fundamentais do bloco.
O Acordo Comercial Anti-Pirataria (ACTA, na sigla em inglês), que também almeja conter fraudes com marcas registradas, gerou protestos na Europa neste mês por preocupações de que possa implicar em censura na Internet e aumento da vigilância.
Alemanha, Polônia, Bulgária, Eslováquia, Estônia, Chipre, Letônia, República Tcheca e Holanda se recusaram a assinar o acordo, sob a alegação de que ele coloca em perigo a liberdade de expressão e a privacidade.
"Nesta manhã, meu colegas comissários discutiram e concordaram em geral com minha proposta de enviar o acordo para Corte de Justiça da Europa", disse o chefe comercial da UE, Karel De Gucht.
"Estamos planejando pedir à corte mais alta da Europa para avaliar a compatibilidade com os direitos e liberdades fundamentais da UE, como liberdade de expressão e informação", disse ele à imprensa.
Desde que as conversas sobre a ACTA começaram em Genebra, em junho de 2008, tem havido muita resistência ao projeto em algumas frentes, como dos setores de Internet e de saúde, que dizem que seus rígidos controles de direitos autorais excluiriam pessoas da Internet e evitariam que os países em desenvolvimento tivessem acesso a remédios.
O acordo pede que provedores de Internet cooperem com autoridades nacionais no combate à pirataria online, encerrando acesso à web de usuários que fizerem downloads ilegais de músicas ou filmes.
A Comissão Europeia, nesta quarta-feira, manteve sua decisão de ratificar a ACTA, mas disse que as diversas reclamações contra o acordo resultaram na decisão de submetê-la à corte Europeia.
(Por Claire Davenport)

terça-feira, 21 de fevereiro de 2012

Livro: A Arte de Invadir




Quatro colegas limpam Vegas usando um computador que cabia no bolso. Um adolescente canadense entediado ganha acesso à seção de transferências sem fio de um importante banco do Sul dos Estados Unidos. Dois garotos são recrutados por um terrorista que tem vínculos com Osama bin Laden para fazer uma invasão na Lockheed Martin e na Defense Information System Network.
E essas histórias são verdadeiras.
Se você trabalha na área de segurança em sua organização e gosta de situações tensas cheias de espiões e intriga da vida real prepare-se para uma leitura excitante.



Kevin Mitnick, cujas próprias façanhas o tomaram um herói absoluto do hacker conta dezenas de histórias verdadeiras de invasões cibernéticas
— esquemas altamente efetivos, cruelmente inventivos, que aceleram a pulsação enquanto você se surpreende com tanta audácia. Cada uma é seguida pela análise especializada de Mitnick, que observa como o ataque poderia ter sido evitado
— e ele tem qualificações incomparáveis para recomendar medidas efetivas de segurança. Sendo tanto uma lenda no submundo dos hackers quanto um general na guerra contra o crime cibernético, Kevin Mitnick possui uma arma que muito provavelmente renderá o intruso: o conhecimento profundo da mente brilhante e tenacidade do hacker.




Warburg - Hitlers Secret Backers - The Financial Sources of Nationa




http://www.4shared.com/office/eQw4TQvA/Warburg_-_Hitlers_Secret_Backe.html?


CONTENTS
Page
Publisher's Note........................................................ iv
Editor's Introduction.................................................... v
Who's Who in the Book ........................................... vii
Translator's Affirmation ............................................. ix
Text as Translated From German to English.............. 1
1929.........................................................................2
1931.......................................................................14
1933.......................................................................32
Epilogue................................................................... 41
iii
PUBLISHER'S NOTE
The newspaper clipping that appears below appeared in many major
papers throughout the U.S. and was received by all major TV networks. None
of the TV networks carried the story to the best of our knowledge.
The last line of the UPI release says the manuscript would be republished
Dec. 1 of 1982. On Jan. 4, 1983, we received word that the publisher had
"changed his mind" and would not reprint the document. No reason was given.
So, in the last 50 years this book has been suppressed twice. What forces caused
this remain unknown, but if they are that powerful, we have every reason to
believe that we'll be hearing from them at some future date.
This third release of the manuscript while true to the original in verbiage
has corrected previously unchanged errors in spelling and punctuation.
History is now the judge of the book's authenticity.
San Jose Mercury News - Saturday, September 25,1982
MUNICH, West Germany (UPI) — A publishing
firm claimed Friday to have discovered a book
that alleges American bankers supplied Adolf Hitler
with millions of dollars to help build up his Nazi
party.
Droemer Knaur publishers said they received a
copy of the book from a Dutch doctor and were
convinced that it was authentic.
They said the book, written by the late U.S.
banker Sidney Warburg, disappeared during the war.
Warburg, a joint owner of the New Yotk bank
Kuhn Loeb and Cie. described in the book three
conversations he held with Hitler at the request of
American financiers, the Bank of England and oil
firms to facilitate payments to the Nazi party, the
publisher said.
The book alleged that Hitler received $10 million
from Kuhn Loeb and Cie. during 1929, further
payments of $15 million in 1931, and $7 million
when Hitler took power in 1933, the publishers said.
They said Warburg described himself in the book
as the "cowardly instrument" of his American banking
colleagues for having arranged deals with Hitler.
The book originally was published in Holland in
1933, shortly before Warburg's death, but disappeared
during the war after its translator and publisher
were murdered, the publisher's spokesman
said.
He said it was thought the Nazis carried out the
murders and destroyed copies of the book to avoid
being discredited.
The book will be republished Dec. 1 under the
title "How Hitler Was Financed," he said.
IV
U.S. bankers aided Hitler, book claims
EDITOR'S INTRODUCTION
The book you are about to read is one of the most extraordinary historical
documents of the 20th century.
Where did Hitler get the funds and the backing to achieve power in 1933
Germany? Did these funds come only from prominent German bankers and
industrialists or did funds also come from American bankers and industrialists?
Prominent Nazi Franz von Papen wrote in his MEMOIRS (New York: E.P.
Dutton & Co., Inc. 1953) p. 229, "...the most documented account of the
National Socialists' sudden acquisition of funds was contained in a book published
in Holland in 1933, by the old established Amsterdam publishing house
of Van Holkema & Warendorf, called DE GELDBRONNEN VAN HET
NATIONAAL SOCIALISME (DRIE GESPREKKEN MET HITLER) under the
name 'Sidney Warburg.'
The book cited by von Papen is the one your are about to read and was
indeed published in 1933 in Holland, but remained on the book stalls only a
few days. The book was purged. Every copy—except three accidental survivors—
was taken out of the bookstores and off the shelves. The book and its
story were silenced—almost.
One of the three surviving copies found its way to England, translated into
English and deposited in the British Museum. This copy and the translation
were later withdrawn from circulation, and are presently "unavailable" for
research. The second Dutch language copy was acquired by Chancellor Schussnigg
of Austria. Nothing is known of its present whereabouts. The third Dutch
survivor found its way to Switzerland and in 1947 was translated into German.
This German translation was in turn found some years ago by this editor in the
Schweizerischen Sozialarchiv in Zurich, along with an affidavit by the three
Dutch-to-German translators and a critique of the book. This editor made copies
of the German text and commissioned an English translation. It is this
translation that you will read here. Even allowing for the double translation
from Dutch to German and German to English, the original lively style is
essentially retained. The book is not by any means dull reading.
V
The original book FINANCIAL ORIGINS OF NATIONAL SOCIALISM
was branded a forgery. However, since 1933 numerous pre-war German government
files have become public information, including the captured German
Foreign Ministry files and the Nuremburg Trial documents. These confirm the
story at key points.
For example, in the book, Sidney Warburg claims to have met with an
obscure banker von Heydt in 1933. We now know in 1982 from the German
records that in 1933 the Dutch Bank voor Handel en Scheepvaart N.V. was a
channel of funds for the Nazis. The earlier name for this bank was the von
Heydt Bank. Coincidence? How would Sidney Warburg know in 1933?
There are other links. We now know that the German combine of I.G.
Farben was a financier of Hitler, and Paul Warburg was a director of American
I.G. Farben. Further, Max Warburg was a director of the German I.G. Farben.
Max Warburg also signed the document appointing Hjalmar Schaht to the
Reichsbank—and Hitler's signature appears alongside that of Max Warburg.
Yet the Warburg family denied any link to Hitler. The Warburgs branded
the book a forgery and threatened the publisher unless it was removed from
bookstores. In any event, the Warburgs are not accused directly. "Sidney Warburg"
was only the courier. In fact, all the bankers named are gentiles, not
Jewish.
In 1949 James P. Warburg made a sworn affidavit which compounds the
mystery. Warburg denied he had even seen the "Sidney Warburg" book, yet
branded it as a complete forgery! Furthermore, careful reading of the James
Warburg affidavit shows that his denial refers to another book published by
one of the translators, Rene Sonderegger, and not the "Sidney Warburg" book.
And just to deepen the mystery, this Warburg affidavit is published in Fritz von
Papen's MEMOIRS—the very same source that recommended Sidney Warburg
as a source of accurate information on the financing of Hitler (and Papen
was, of course, a prominent Nazi).
Even today in 1983 a mystery surrounds the document There is a ring of
authenticity about the original explanation for its publication—that an individual
member of the Warburg family wanted to warn of the coming European
war.
vi
WHO'S WHO IN THE BOOK
"Rockefeller" John D. Rockefeller II
"Carter" John Ridgley Carter, married Alice Morgan
connected to Morgan interests in Paris.
"Deterding" Henri Deterding, head of Royal Dutch Shell
and strong Hitler supporter
VII
DOCUMENTATION
Concerning
THE FINANCING OF POLITICAL EVENTS
For the Archives of the
Schweizerischen Lanclesbibliothek
February 11,1947
EXPLANATION
The undersigned three witnesses do verify that the accompanying document
is none other than a true and literal translation from Dutch into German
of the book by Sidney Warburg, a copy of which was constantly at their disposal
during the complete process of translation. They testify that they held
this original in their hands, and that, to the best of their ability, they read it
sentence by sentence translating it into German, comparing then the content of
the accompanying translation to the original conscientiously until complete
agreement was reached. The original book is titled: De Geldbronnen van het
Nationaal-Socialisme, Drie Gesprekken met Hitler, Door Sidney Warburg,
vertaald door I.G. Shoup (sic), it has the mark of the publishing house "Vol
Hardt En Waeckt" and appeared in the year 1933 in Amsterdam as a brochure
consisting of ninety-nine pages of text, put out by Van Holkema & Warendorf 's
Uitg.-Mij. N.V.
Zurich, Switzerland, February 11,1947
Dr. Walter Nelz
born March 4,1909, citizen of Zurich
Wilhelm Peter
born July 28,1906, citizen of Gottingen
Rene Sonderegger
born January 16,1899, citizen of Heiden
Issued in three copies for the undersigned, with an additional two copies,
one of which is made available to the Schweizerischen Sozialarchiv in Zurich
and the Schweizerischen Landesbibliothek in Bern.
VIII
Sidney Warburg:
The Financial Sources of National Socialism.
Three Conversations with Hitler
Translated by J.G. Schoup
van Holkema & Warendorf, Publishers, Amsterdam, 1933, 99 p.
HOW IT HAPPENED...
idney Warburg said very little, as long as the guests were present. He was
alone with me now and he began to talk about the Sinclair scandal.
"There are moments when I want to run away from a world of such intrigue,
trickery, swindling, and tampering with the stock exchange. Every so often I
mention these things to my father as well as to other bankers and brokers. Do you
know what I can never understand? How it is possible that people of good and
honest character—for which I have ample proof—participate in swindling and
fraud, knowing full well that it will affect thousands. The powers in Sinclair Trust
have brought in millions of dollars to Wall Street, but ruined thousands of savers.
When one questions the reasons for the dishonest and morally indefensible
practices of financial leaders one never gets an answer. Although their private lives
are orderly and good, it can't be that they discard their true characters as soon as they
enter the financial world, forgetting all concepts of honesty and morality in favor
of money, sometimes millions of dollars."
The struggle of conscience visible in these words of Sidney Warburg, son of
one of the largest bankers in the United States, member of the banking firm Kuhn,
Loeb & Co., N.Y., is the tragedy of his life. He was never able to free himself from
his connections with that milieu, whose deepest motives he could never completely
grasp.
Those words, spoken in 1928, perhaps explain what I asked myself in 1933,
why he finally decided to tell the world how National Socialism was financed. In
doing so he dutifully did not shove his own role into the background, but confessed
his personal participation honestly.
When I received the manuscript from him, along with the request to translate
it, I felt that the tragedy in the authors life had reached a final point, forcing him
to make the honest confession contained in the following pages. This is me first step
towards inner freedom that I wish for him from all my heart, because he has the
courage to say in front of the whole world: "They made it possible, but I was their
cowardly errand-boy!"
If the "poor world" and "poor humanity" —words with which the author ends
his work—do not understand his cry, then his admission was an act of courage,
which was necessary to make it. To have this courage means to break with old circles
and to expose former friends to the world as men without conscience, especially
while revealing one's own full, undisguised participation in the process.
October 1933 The Translator
S
2
1929
oney is power. The banker knows how to concentrate and manage
it. The international banker carries on international politics. He is
obliged to do this by the central government of the country in which
he is settled, because the government influences the bank of issue. In other countries
this is called the national bank. Whoever understands what was concealed behind
the word "national" in the last few years and what is concealed there still, also knows
why the international banker cannot keep himself out of international politics.
The American banking world had been developing for months at a brisk
tempo. We were experiencing a boom, and we knew it. Pessimists predicted a
sudden fall, but every day we wrote out larger orders, and Wall Street itself made
fun of the pessimists. Wall Street gave money to the whole world—even the faraway
Balkan Peninsula, whose states we had heard named in school and had long
forgotten, received credit, their obligations were sold, speculators pounced on them
and the rate of exchange rose. Political economists are still not in agreement today,
1933, as to why the pessimists were right about specifically 1929, not a year earlier
or later. 1929 was the beginning of a miserable epoch for Wall Street, which has
still not ended.
The rate of exchange did not collapse, the usual term for a decline, but simply
plummeted, and in a few weeks the credit-mania in New York was completely over.
Agents from credit-seeking European states had to go back home empty-handed.
America seemed to have no more money. In hard times it is the custom here for men
in power not to keep their views silent. The leading newspapers published
interviews with Hoover, McCormick, McKenna, Dawes, Young and numerous
others, but it didn't help us on Wall Street. We were living in hell.
Whenever one was called to answer the phone, upon one's return, the prices
for steel, Anaconda, Bethlehem, and the leading oil companies had fallen by ten to
twenty points. The fall in share prices attracted everyone, whether they wanted it
or not, and I know many aserious, respectable banker of excellent reputation, who
considered speculation on the rates of exchange to be criminal, but then went ahead
and participated himself. He would do this openly, without asking his broker to
camouflage his orders or keep them secret from the market.
I said already that we were living in hell, Now, 1933, one remembers those
days, but no one can picture the actual situation without having lived through it.
We can't forget that the whole world looked to Wall Street, and that London, Paris,
Amsterdam, Berlin all were involved in the tension New York lived in. For that
reason the crash on Wall Street had international significance.
I leave it to others to uncover the causes of the sudden crash. I only want to
describe briefly the state of American finance in 1929. Without a look at it, the
following would be largely incomprehensible to my readers.
The Federal Reserve banks had huge sums standing in Germany. Credits in
M
3
Germany had been frozen since the dissolution of the Darmstadter and National
Bank, the crash of Nordwolle, the reorganization of the D-banks (Darmstadter,
Deutsche, Dresden, Dusseldorf), the issue of the Young-Obligations, and the
founding of the bank for international payments. The case was the same in Austria
after the crisis in the Kreditanstalt. French, Belgian, Rumanian and Italian war
debts were still being settled, but various debtor-states began to request alterations
in annuities and rates of interest at every opportunity. Years earlier the French war
debt had been arranged at very convenient stipulations that proved to be all too
favorable for France. In short, the United States had in 1929 claims on foreign
governments as well as private persons abroad amounting to 85 billiard1 dollars.
This was in April. The American banking world had never been enthusiastic about
Wilson. Bankers and financiers viewed his idealism as good enough for the study,
but unsuited to the practical, international world of business. For that reason Wall
Street had never been very happy about the Treaty of Versailles, which had been
constructed along Wilson's guidelines. This treaty had been formally turned down
because France was favored in it for no reason. That was the feeling in 1920, in 1929
it had grown into open hostility. Even though the original agreements had been
altered in the meantime in numerous ways (Dawes—Young, etc.) the fact still
remained that France, according to the American banking world, held the key to
the economic recovery of Germany because of its favorable position with regard to
reparations, and because of its claim to receive these in gold instead of in goods. As
soon as one realizes that the well-being of America as well as Great Britain, even the
whole world in fact, depends on this economic recovery, then it is clear why the
Americans tried to promote the economic construction of Germany and Middle
Europe through credit. But France threw a wrench into their plans, because whatever
America advanced Germany, either directly or through London, or whatever
London itself gave directly found its way sooner or later to France in the form of
higher reparations. Germany could not export enough to achieve a trading surplus
that would cover its reparations to France. Therefore it had to pay its debts from
its capital, but this capital had been advanced in the form of large credits from
America and England. The situation became intolerable. Germany could not
continue its unlimited acceptance of foreign currency, and America and England
could not lend unlimited amounts.
America's foreign claims had been, for the most part, frozen in Germany,
Austria and Middle Europe because of the previously described difficulties. 85
milliard2 (sic) dollars are no trifle even for a country like America. 50 to 55 milliard
dollars of this were, according to definite estimates, frozen and the rest was in no
way secure, because one had reason to doubt the good will of the former allies—
with the exception of England—regarding the repayment of debts to America.
At this point we must go back a ways into postwar history. Ever since the first
days after the signing of the Treaty of Versailles, France regarded its stipulations as
permanent and sacred, not because of sentimental considerations but out of
1 One billiard = One thousand billions
2 One milliard = One thousand millions
4
comprehensible self-interest. However hard it has been in past years to convince the
French governments and French financial experts in speech and in writing that
more was demanded of Germany than it could give according to the stipulations
of the treaty, this point of view never gained entry into leading circles in Paris. As
long as the French are not convinced of this truth, international cooperation is not
possible. A world economic conference is being held this year in London. I wouldn't
bet a single nickel on its success, if the French government does not substantially
change its position. In all the negotiations that have been held since 1920 to change
the Treaty of Versailles, France has consistendy guarded against a reduction of the
reparations due her. Several reductions were put through in spite of this, but France
never asked for more than she could not possibly receive, and even knew how to
gain advantages for herself out of reductions. France, then, received, also due to the
acceptance of the Young plan, the largest portion of the annuities without any
conditions attached, and managed to maintain her resultant superiority over
Germany. I do not judge France's behavior. Politicians and financiers in France
were subject to the belief that the possibility of a repetition of 1914 should be kept
open and that they should try to anticipate the danger; to them a prosperous
Germany increased the possibility of such a repetition. (The Germans were always
the robber barons in Europe and will always be, just as in the Middle Ages.)
Germany, according to French belief, must remain economically weak. But the
world needs a prosperous Germany, America more than anyone else. Why? Look
for the explanation in works on political economy, in examples of practical,
international economy, in fat books on the subject containing much idiocy, all
betray a complete lack of insight into reality. Political economists are, first of all,
primarily academics. They are familiar with banks, factories, business offices,
stockmarkets, but only from the outside. Don't forget that when Wilson was still
a professor at Princeton, he was known in America as the best political economist.
But I have strayed from the subject. We must remember: France does not want a
prosperous Germany out of concern for her own security; America and England,
however, need a healthy Germany, otherwise both can't be prosperous. In order to
keep Germany down economically, France makes use of her claim to reparations,
which everyone set at much too high a price, due to Wilson's lack of common sense
and to the excitement of victory from 1918-20, and they became an unbelievable
burden on Germany. All German governments stood between the frying pan and
the fire: demands from foreign countries (mainly France) on one side, and anger
from within on the other. If they fulfilled the foreign demands, then the German
people cried treason—reproaches and accusations from the people can ring very
loudly—if they resisted, then a French military occupation threatened. The
adventure in the Ruhr came about in this way. It proved to be unsuccessful for
France and she gave up additional attempts, but found other ways to make
advantageous use of her reparations claim. I cannot explain all of French political
strategy in this brief presentation. I would only like to add that France knew how
to fight stubbornly against every reduction of reparations, or how to accept
reductions if they could be replaced with other advantages. As long as France could
5
bring in its demands for reparations, as long as American and English loans to
Germany did not suffice to ensure its economic reconstruction, then this reconstruction
had to fall to pieces on the requirements of the Treaty of Versailles.
No one will be surprised when the financial world in America looked around
for other means to checkmate France on this issue. If the weapon of reparations
could be knocked out of her hands, then Germany could put its economy back on
a sound financial basis with help from America and England, and open the door
to prosperity to the two largest countries in the world. In June, 1929 a meeting took
place between the Federal Reserve Banks and the leading independent bankers of
the United States. I found out only later what direction this exchange of ideas took.
But first I will go into the international world of oil. There is, namely, an international
oil world just as there is an international banking world; that must certainly
be known to you. Oil kings are voracious men. Standard Oil and Royal Dutch are
good friends. Both of these enterprises have divided the world into districts, and
each has certain numbers reserved for himself. Each enterprise is complete master
of the territory allotted to him. These people have amassed great profits through
the years in this way. But Soviet Russia then spoiled everything by introducing
strong competition against Standard Oil and Royal Dutch. Since that time the
companies make only six to seven percent profit from their capital, but that isn't
enough to satisfy the directors' greed. The Russian competition was especially
successful in Germany, because various German governments made overtures to
the new leaders of Russia, trying through credits, etc. to allow Russian oil and gas
easier access to the German market over any other country. Be patient for a few
more lines, and you will understand why representatives of Standard Oil and Royal
Dutch were present at the conferences held by the Federal Reserve Banks in 1929
with American bankers. I will not expound any longer on international financial
affairs, but will relate simply the part I played at the above-mentioned conference
in 1929, what the assignment was that resulted for me, and how I carried it out. This
confession is dry and boring for devotees of fantastic tales and they will simply throw
it away. My narrative is even less suited to those who know that real life writes more
thrilling and suspenseful tales than the boldest fantasy a fiction writer can invent,
because to them only murder, manslaughter, theft, blackmail, threats, divorce and
sex-appeal are suspenseful. My narrative is the faithful description of four conversations
I had with the 'rising man' in Europe, Adolf Hitler. I don't intend to write
a work of literature because I am only relating my own experiences, everything I
heard and learned, and I will insert my own opinions here and there so my readers
can better orient themselves. In publishing my experiences I don't mean to awaken
hatred against persons, but to expose the misdeeds of a system that controls the
world, and that can allow what I myself participated in to happen. "Can allow to
happen" is not the right expression. What actually happened is what I mean.
In July, 1929 I was invited to come to the offices of Guaranty Trust in New
York the next day, to have a discussion with Carter, the President-Commissioner
of the bank. Carter was alone and began without formalities. The next day a
meeting was to take place among the directors of Guaranty Trust, at which the
6
President-Commissioners of the other Federal Reserve Banks, as well as five
independent bankers, the young Rockefeller and Glean from Royal Dutch would
be present. Carter had spoken to the men about me at the earlier meeting, the one
I knew had occurred in June, and they all agreed that I was the man they needed.
I speak perfect German and I spent four years working in Hamburg at a banking
firm we were friends with. Carter told me what the situation was. I knew all about
the international financial problems, he didn't need to say anything on that subject.
I knew also how the New York banking world was looking around for the means
to end France's misuse of reparations demands. I received a short resume of what
France had done in the field of internadonal financial politics. Carter also knew that
London felt the same way as New York. I would then be informed as to what would
be discussed the following day, but in any case he could depend on my presence at
the meeting.
Naturally I came the next day. Carter and Rockefeller dominated the proceedings.
The others listened and nodded their heads. The issue of concern was—using
Carter's words—very simple. It was clear to every one of us that there was only one
way to free Germany from the financial clutches of France, and that was revolution.
The revolution could be carried out by two different political groups. The German
Communists came into question first, but if a Communist revolution succeeded
in Germany, then the power of Soviet Russia would be strengthened and the
Bolshevist danger to the rest of the world would be increased. There remained a
revolution activated by German Nationalist groups. There were actually several
groups of this persuasion, but no political movement was radical enough to bring
about a real overthrow of the state in Germany, if necessary with force. Carter had
heard a bank director in Berlin speak about a certain Hitler. Rockefeller himself had
read a short essay in a German-American leaflet about the Nationalist movement
led by this man Hitler (he said "Heitler"). It had been decided at the earlier meeting
to make contact with "this man Hitler" and to try to find out if he were amenable
to American financial support. Now the question was clearly addressed to me:
would I be prepared to go to Germany, get in touch with him, and take the necessary
steps to arrange this financial aid? It must be taken care of quickly, because the
sooner the Nationalist group in Germany could be built up the better. It should be
emphasized in my negotiations with Hitler that an aggressive foreign policy was
expected of him, he should stir up the Revanche-Idee against France. The result
would be fear from the French side, and consequently greater willingness to ask for
American and English help in international questions involving eventual German
aggression. Hitler should naturally not know about the purpose of the assistance.
It should be left to his reason and resourcefulness to discover the motives behind
the proposal. The next topic of conversation was that I should find out from Hitler
how much money he needed to bring about a complete revolution of the German
state. As soon as I knew this, then I should report to Carter, in the Guaranty Trust's
secret code, which European bank the amount, in my name, should be sent to, so
I could then turn it over to Hitler. I accepted the assignment. "Why? When I am
asked this question I don't know what to answer. In 1929 I would perhaps have said:
7
because I feel the same way as Carter. But when does a man ever know if he is acting
for good or evil? Actually that is irrelevant here. I am relating what occurred through
my participation.
Three days later I found myself on board the Isle de France with destination
Cherbourg; twelve days later I was in Munich. I traveled with a diplomatic pass,
with letters of recommendation from Carter, Tommy Walker (not yet compromised
at that time), Rockefeller, Glean, and from Hoover. The diplomatic world
was as open to me as society, the banking world, and, last but not least, government
circles.
Hitler was not easy to reach. The man was either cowardly or feared making
himself cheap. The American counsul in Munich did not succeed in bringing me
in contact with Hitler's Nationalist group. I lost eight days time thereby. I decided
to take matters into my own hands and went to the mayor of Munich, Mayor
Deutzberg, with a recommendation from the American counsul. The mayor
promised us that the next day I would have a report as to when Hitler would receive
me, but I doubted his word. He hadn't promised too much, though, because the
next day a friendly letter from Deutzberg arrived at the porter of my hotel in the
course of the morning, stating the day and hour Hitler would receive me in the beer
cellar. I just had to give my name to the waiter in the cafe and I would be brought
to Hitler. All this gave me the impression of secret Mafia methods. I went, and
everything ran as planned. Behind the huge hall of the beer cellar is a red, oldfashioned
room in which Hitler sat between two men at a long table. I have often
seen the man in pictures, but even without having seen him in magazines I would
have known that Hitler was the middle one. The three men stood up, each introduced
himself, the waiter brought me a huge mug of beer and I could begin. Of
course, I didn't want to bring up my assignment in the presence of the two
companions. I wanted a confidential discussion between us two. Hitler whispered
with the two men and said to me in a sharp tone of voice: "This is not my usual
custom, but if you show that you have references, I will consider it." I gave him a
few introductory letters. He delayed no longer. One look at the two men sufficed
to make them disappear.
I then laid all my reference letters on the table and requested Hitler to take note
of them. After he had read the letters he asked me if I planned to report my
conversation with him in an American newspaper. I answered negatively. That
made a visible impression on him. "I don't think much of journalists," said Hitler
immediately. "Especially American journalists." I didn't ask why. It didn't interest
me. Cautiously I posed several questions to him. I got an evasive answer to each one,
instead of a clear yes or no. In between Hitler finished his huge beer mug and rang.
Immediately the waiter who had led me in came and took an order. The new mug
must have loosened his tongue, because he then took off.
"I find the Americans the most likeable of all foreigners. They were the first to
help us after the war. Germany will not forget that. I am speaking of a new
Germany. What do you think of our movement over there in your country?.. .Our
party platform is translated into English after all. Soon, time will be telling them
8
what we want. The German people are suffering in slavery because of the reparations
demanded by the Treaty of Versailles. Freedom no longer exists for Germans,
either at home or abroad. Our governments have consisted of cowards and
traitors since 1918, each one is corrupt. The people believed the new leadership.
Jews and Marxists are the masters here. Everything revolves around money.
Discipline and order no longer exist. The German official is untrustworthy. A
tragedy for the country... no one thrives under this rabble. Nothing can be expected
of the Reichstag and Landtag. All the political parties carry on disgraceful, shady
dealings. The government lets foreign countries dictate its laws, instead of showing
its teeth and realizing that the German people are still capable of resistance. The
people are much better than the governments... How can this be changed? We are
carrying on an intensive propaganda campaign against treason and blackmail. We
have no more than two daily newspapers and our local organizations are growing
continually. They think they are hindering our movement by banning uniforms.
Nonsense. The uniform is nothing without the spirit. We will continue to work
on the spirit of the people, the discontent must spread, unemployment must pick
up, only then can we make headway. The government is afraid, because we have
proven that we know the right path to the hearts of the people. We offer work and
bread. We can also give it, as soon as an enlightened people realizes it has a right to
live and take its place among nations. The Reichswehr1 has developed everywhere
by our own efforts and our divisions, through strict discipline. We are not sitting
on a Utopia of Jewish and Marxist bastards. Our platform is German, and we will
not give in an inch."
Hitler made a singular impression on me. His short, choppy lines of thought,
his chatter, his confused rambling without serious proof made me think that this
man was empty inside, and could bring on a wild demagogy with his inflated
speech. I mentioned the organization of his movement.
"As trong spirit of solidarity controls our movement. Many of the unemployed
from the big cities have joined up, many middle-class people from smaller areas and
many farmers from the Platten Lande. Our people give from what little they have
to keep our movement going. Dishonesty and betrayal can't occur because I have
everything in my own hands. The exemplary training of our people draws all the
finances automatically to the central point here in Munich, and I am that central
point...."
"Force? But that is taken for granted. A large movement practically can't be
developed without force. The stupid chatter of the pacifists is just laughable. Those
people aren't living. Life is strength. Life is force. Look at nature, look at the animal
world, there the only law is the law of the strongest... towards foreign countries? It
may work out no other way. I want to leave America out of consideration, but not
other countries. Do you think Germany will get back its colonies without force, or
Alsace-Lorraine, or the huge Polish territories, or Danzig?... Money? That is the
crucial issue; money can only be earned when the German people are free to
1 German National Army
9
establish their economic stability, then we can grab the most favorable opportunity
to fight for our rights with the strength of our weapons... France is our enemy, the
other earlier allies are our competitors, that is an important distinction... Swindling
by Jewish banks must come to an end. Speculators from Galicia are stripping away
the income of the middle class. Huge department stores are squeezing out small
tradesmen... Taxes and rents should be regulated and done away with ...." Hitler
stuck his hand in the opening of his brown shirt. "Here is our platform. You can
find everything in there that we have set before us."
It was time for me to bring up the purpose of my visit. He wouldn't let me talk.
"Difficulties? Of course there are difficulties, but they don't hinder me. I have made
the liberation of the German people my life's goal, and either I will win or be ruined.
Our biggest difficulty is that the people have become apathetic after years of neglect.
That is why we need a forceful, persuasive propaganda, that stirs up their minds.
Propaganda like this costs money.. .No, we can't demand large dues from our
members, I already had to lower them because many couldn't afford them.. .There
is sympathy for our movement in some circles, especially among the nobility. These
sympathies are not pure, though, and we are not sure of them. I don't want to be
the servant of the monarchists' movement in Germany. All aristocrats here are
infected with monarchistic sentiments, and I won't let them into the movement for
that reason, without being certain of their conviction. Even then they are under
strict control by our leaders...We can't count on sympathy from the large
capitalists yet, but they will have to support us when the movement has become
powerful. What do people in America think of our movement?"
The American interpretation ofhis party seemed to interest Hitler particularly.
I gave him the same answer as before, that we in America knew too little of his efforts
to form an opinion. Again he mentioned the difficulties. "There are many workers
who are susceptible to our propaganda, but their own interests keep them from
joining the movement. The Social Democratic unions have huge funds at their
disposal. In these times it is naturally almost impossible for many to miss paying
dues to the unions. We are looking for the means to attract sympathetic elements
in the unions into our movement. They can perform a useful service for us by
influencing the minds of their colleagues. At the moment I am working on a big
plan for our own press office here in Munich, and a publishing office with branches
in Berlin, Hamburg, and one city on the Rhine. We haven't worked on Northern
Germany yet, and the Rhine provinces are on the way. Bavaria is generally favorably
disposed, as well as Saxony."
It became more and more difficult to carry out my assignment. Hitler seemed
to like hearing himself talk, and when I tried to put in a small word that could lead
to the purpose of my visit, he changed the subject to something else. He continued...
"President Hindenburg is not sympathetic to our movement, but he will
certainly not oppose the will of the people when the time comes. The clique of
aristocrats surrounding him is afraid of the rising power of the German people,
because we can demand that they be taken to account for their weak, cowardly
position towards foreign countries and Jewish capitalists," Suddenly he was silent,
10
watched me for a long time, then said acidly: "Are you also a Jew? No, luckily,
certainly of German origin. Yes, I can tell from your name." Now I had the
opportunity to refer to the difficulties in Hitler's movement, and came out directly
with the plan for financial help.
"If that were possible, there would be nothing we couldn't achieve. Our
movement will die without arms. They can take the uniforms away from us, but
our principles will spread. We do need weapons, though.. .Making deals doesn't
bother me, and I can get weapons everywhere with money. We have set up a school
for arms training here in Munich, and it is highly favored by the movement."
At this point I brought up my carefully worded proposal and asked for Hitler's
estimate of the amount. This seemed to perplex him. He rang. A whispered
conversation with the waiter. Hitler played nervously with his notebook, seemingly
deep in thought. A tall, thin man of about forty, looking militaristic in a brown
uniform, came in. Hitler offered him a seat next to him. I was not introduced.
Without any preface Hitler asked him how much was needed to spread the
movement intensively all over Germany.
"We have to take the North and the Rhine areas into account. We must
remember that we can accomplish a great deal by helping the unemployed who are
still members of unions, and we can't forget how much we need to completely fulfill
our plans for Storm-Detachments. Armaments cost a great deal, and smugglers
demand high prices." Von Heydt took a long pencil from the table and began to
figure on the back of a beer plate. Hitler leaned an arm on his chair and followed
his calculations. Then he took the plate from von Heydt and thanked him in a tone
of voice signifying clearly that he should leave us alone. "Please remember that for
us to make a calculation in our circumstances is not easy. First of all, I would like
to know how far your backers are prepared to go, and second, if they will continue
supporting us once the initial amount has been spent. Von Heydt has made a
calculation here that I fundamentally agree with, but I first want to know what you
think of these two points; then another problem is, that we have based our estimate
on existing plans when there are still many others under considerations that will be
put into effect once the first have been completed. I am thinking of, specifically, the
training and education of our detachments in the use of gliders, as well as uniforms
for the unemployed—the ban on uniforms is harmless—and of still other plans."
Of course I could not answer him, and I made it clear once again that this first
meeting was intended primarily to establish contact. His questions as to the amount
of financial help would depend on whether my backers would actually come up
with the financial aid, only then could a maximum limit be determined. This didn't
seem to please Hitler, or he found it too complicated, because he asked me again
anxiously if I personally had any idea of the amount to be given him. I was also
unable to answer this one. I expected him to ask now why the Americans were
making this offer of financial support, but he asked something quite different.
"When could I receive the money?" I had an answer to this question—I guessed that
as soon as New York received my telegraphed report they would quickly take steps
to send the money to Germany if they could agree on the amount. He interrupted
11
me again. "No, not to Germany, it is too dangerous. I don't trust a single German
bank. The money must be deposited in a foreign bank, where I can then have it at
my disposal. He looked again at the figures on the plate and said imperiously, as if
he were handing down a strict order: "One hundred million marks."
I did not show my amazement at his greed, but promised him to telegraph New
York and give him the response of my backers as soon as possible. He wouldn't hear
any of this. "As soon as you have the report from America, write to von Heydt, his
address is Lutzow-Ufer 18, Berlin. He will contact you with further instructions.
Hitler stood up and offered me his hand, which was a clear indication for me to
leave.
On my way back to the hotel I figured out that one hundred million marks was
about twenty-four million dollars. I doubted that Carter & Co. would be prepared
to put that much money into a European political movement. I finally concluded
that it was up to them in New York to decide, and sent a brief summary in secret
code of the conversation I had with Hitler.
The following evening I went to a meeting of the National Socialist party at
the Circus. That morning I had received an invitation to go to it. Hitler would speak
there himself, followed by a certain Falkenhayn. I noticed again the emptiness of
his reasoning, as I had during our conversation. Never a sign of logic, short,
powerful sentences, abrupt and screamed out, political tactics of demagogy,
persistent rabble-rousing. I sympathized with the journalists who were there to
write reports for their papers. It seemed to me that no report could be made of a
speech like that. Hitler didn't speak about the movement, nor about the platform,
or of reforms he and his followers expected to carry out. He attacked every government
since 1918, the large banks, Communists, Social Democrats, Jews, big
department stores. His speech was full of words like traitors, thieves, murderers,
unscrupulous men, repressors of the people, those who besmirch the German spirit,
etc. He mentioned no facts. He was always vague and general, but... it worked.
Later I learned that after this evening about 130 people had become National
Socialists. I had the impression that Falkenhayn's speech was being used to calm
the audience after Hitler's inflammatory words. Dry and almost incomprehensible,
Falkenhayn wanted to prove that Soviet Russia was a danger to the world, that there
can be no talk of a union of all Socialists, and that the Hitler movement was the first
party to bring about true socialism. His success was moderate.
I didn't hear from Carter until the third day. Ashort answer, also in secret code.
Ten million dollars were made available. I only had to telegraph which bank in
Europe I wanted the money sent to, in my name. Carter & Co. evidently felt the
same way I did, that twenty-four million dollars was too much money to throw into
the wind. I wrote immediately to von Heydt and the next day received a telephone
call from him in Berlin. He arranged a meeting in my hotel.
That same evening von Heydt came to Munich accompanied by an undistinguished
looking man, introduced to me under the name Frey. I received the men
in my room and informed them that New York was prepared to donate ten million
dollars to a European bank, in my name. I would then dispose of it according to
12
Hitler's wishes. The payment and transfer of the money must be regulated carefully.
Both acknowledged this without showing any sign of surprise, and added that they
could settle nothing without having talked with the "Fuhrer," I didn't understand
right away who they meant, but when I continued to say the name Hitler a couple
of times the little Frey corrected me quite sharply, saying each time: 'You mean the
'Fuhrer'." I noticed later many times that the name Hitler was never spoken in
National Socialists circles; he was always called the "Fuhrer." It made no difference
to me. The "Fuhrer" then, if that's what they wanted.
I waited in Munich for a report from von Heydt, and two days later a letter
came announcing his visit. He and Frey announced themselves again at my hotel.
The following stipulations were set before me: I was to telegraph New York, asking
them to make ten million dollars available to me at the Mendelsohn & Co. bank
in Amsterdam. I should go to Amsterdam myself and ask this banker to make out
ten checks of one million each in the equivalent mark value to ten German cities.
I would then endorse the checks, signing them over to ten different names that von
Heydt, who would also be traveling with me to Amsterdam, would provide for me
there. I could then return to America from Holland. I had the feeling they were
dictating such a mode of procedure to me because they wanted me to disappear
from Germany as quickly as possible. I raised no objection to these conditions and
everything went as von Heydt had arranged.
I ran into two unusual occurrences in Amsterdam. At the offices of Mendelsohn
& Co. I was received with unusual politeness after I had asked for an
appointment with the director, and von Heydt, who stood next to me at the
counter, was treated by both lower and higher officials as if he were the bank's best
customer. When the transaction had been taken care of and he had the ten checks
in his briefcase, he asked me to come with him to the German consulate. There we
were also received with a deference and obedience that proved von Heydt's strong
influence. From Southampton I took the Olympia back to New York. I went to the
offices of Guaranty Trust to give Carter a report right away. He asked me if I would
wait and return in two days to give my full report at a plenary session. The same
men were present as in July, but this time an English representative was there sitting
next to Glean from Royal Dutch, a man named Angell, one of the heads of the
Asiatic Petroleum Co.
Carter was of the opinion that Hitler was the man to take risks. They all
thought that twenty-four million dollars was significant, but I had the impression
that they trusted Hitler's determination and certainty because of the size of the
amount. Rockefeller showed unusual interest in Hitler's statements about the
Communists, and as I quoted a few lines from the speech I had heard in Munich,
he said he was not surprised that Hitler has asked for twenty-four million. I was
asked if I had learned how Hitler had intended to arm the National Socialists, and
if he preferred to work through parliamentary channels or on the streets. I could
only answer vaguely, but my personal opinion was that Hitler, trusting in his own
leadership, would take anything he could, and that he regarded it his life's work,
either winning or failing completely. Carter asked me further about Hitler's
13
position in relation to the monarchy, if Hitler was ultimately committed to placing
the Kaiser back on the throne. I answered by quoting Hitler.
I do not know if further sums of money from America were turned over to
Hitler in 1929 and 1930; if they were, then another middleman had been hired.
It is a fact that a few weeks after my return from Europe the Hearst newspapers
showed unusual interest in the new German party. Even the New York Times,
Chicago Tribune, Sunday Times, etc. carried regular short reports of Hitler's
speeches. Hardly any interest had been shown earlier in German's domestic
politics, but now the platform of the Hitler movement was often discussed in long
articles with amazement. In December, 1929along study of the German National
Socialist movement appeared in a monthly publication of Harvard University, in
which Hitler was glorified as the saviour of Germany and given the title of a "rising
name in Europe" for the first time.
14
1931
have sworn not to expound any longer on international financial relations.
This oath was too hasty. I must bring up several more incidents that took
place on the stockmarkets of London and New York, in order to give a clearer
picture of that which follows. It is not romantic, dear reader, but complain to those
who make history, not to me.
In September, 1931 the Bank of England gave up the gold standard. This
means a great deal for a country whose financial world considers gold the basis of
its economy and consequently practices the gold theory. Since the days of the great
Kent, England has used gold as the criterion of its financial system except for ashort
interruption for 1915-1921. This change of principle and practice in England had
great consequences in America. The value of the enormous gold deposits in the
Federal Reserve Banks was considerably reduced. But that was not the worst result
felt on the New York stockmarket. America was much more afraid of endangering
the dollar. It was feared that the dollar would follow the same path as the pound
sterling. The American financial world knew that the decline of the pound sterling
was the result of French tactics, intended to weaken London financially, preventing
further assistance to Germany. The position of New York in 1931 was not much
different from that of London in 1929 and 1930, for that reason America was afraid
of being left unprotected by the same French tactics in case London cooperated
with France. French financiers have proven since 1926 that they are clever
manipulators. Poincare is the greatest financial genius of these times. Earlier,
American and English financiers and experts had looked down on their French
colleagues with confident contempt. The years 1926 and 1931 plus the time in
between have taught us that we could learn a good deal from the French financial
world. Perhaps I will give some evidence later for any doubtful readers. This is not,
however, within the frame of reference of this book. New York was tense.
This tension had turned to uneasiness—the same had happened in London a
few years earlier—enormous shipments of gold were made from New York to
Europe, and it seemed as if these shipments were destined for the most part for
France. This is not absolutely certain. In the beginning we were glad to see these
gold shipments, because we had long since given up the belief in the financial legend
that huge gold supplies mean actual well-being for a country. But the French people
still believed this. When, at the end of September, 1931 and the beginning of
October, 1931, berween 650 and 700 million dollars in gold had been shipped to
Europe in three weeks, we became rather anxious. We are concerned here with socalled
particuliers, partial shipments. The gold deposits of the French government
still sat in the Federal Reserve Banks. They were estimated at 800 million dollars
at the end of October. If this amount was asked for, what then? Naturally we were
prepared to pay it, but it would have caused a panic in the States, and the flight from
the dollar would become fact. France therefore had the key to the dollar situation
in its hands.
I
15
Let us go back a few weeks. Hoover had granted an interview to an editor of
the Chicago Tribunes, that time. Unconsciously Hoover and the editor played into
France's hands. Very few leaders possess international financial insight. Do you
know that a Rockefeller, a Wanamaker, a Harding, son of the late President, and
I will calmly say, even Hoover, are all childishly inept and naive in this field? I also
know statesmen in European countries who know equally little about international
finance and economy. It is not a specifically American occurrence.
Let us go further. Hoover told the editor of his intention to make radical
proposals very soon regarding reparations to Germany and the regulation of war
debts between all states. One could see from the editor's information that it was
possible for Hoover to propose the annulment of reparations payments. Most
people in America were astounded by the proposal. But France was on the qui-vive.
I don't know if in October, 1931 Hoover, on his own initiative, asked Laval to come
to Washington, or if Laval invited himself. In financial circles on Wall Street they
believed the latter. So Laval was coming to Washington, but unexpectedly two
French financiers came to New York, landing on October 15, the same day Laval
arrived. The French financiers were Farnier, Governor-Delegate of the Bank of
France, and Lacour-Gayet, former financial attache to the French embassy in
Washington. They contacted the heads of the Federal Reserve Banks immediately,
who then pulled in two representatives of the Treasury Department. Many rumors
were circulated as to what was being discussed at this meeting. I know from Carter
what was generally brought up. He never would disclose much detail. I gathered
from this that the negotiations were not always friendly. The French had come to
New York to decide along with the Federal Reserve Banks what could be done in
New York. They supposed that the French government had lost several million by
che decline of the pound sterling and London's renunciation of the gold standard.
The weak position of the dollar had caused unrest in Paris, and they wanted to be
sure they wouid not suffer further losses from the dollar. They wanted to know what
was being done to support the dollar. Of course, the enormous gold shipments to
Europe were mentioned, as well as the huge French deposit in the Federal Reserve
Banks. The French were prepared to transfer the sum of 200 million dollars, a sum
by French calculation still deposited in private American banks, to the Federal
Reserve Banks, strengthening its position. The French, however, added conditions:
1. The Federal Reserve Banks must guarantee a minimum rate of
exchange on the dollar, applying to French accounts in the
USA;
2. The rate of interest for these sums should be raised 4.5%;
3. A minimum sum should be determined, that France would leave
in the States.
Since the Americans were not immediately prepared to agree to these
conditions, the French revealed nonchalantly that even though the agreement they,
Lacour-Gayet and Farnier, would make with the Federal Reserve Banks was of great
importance, it was only part of a general agreement Laval would be settling a few
days later in Washington. They had let the cat out of the bag. It was clear that Laval
16
had to dissuade Hoover from his plans for reparations payments and regulation of
debts, and that Laval had to make use of the government funds deposited in the
U.S.A. to force the President to give up his plans. No one can say what the result
of these negotiations was in New York as well as Washington. The banking world
in New York stubbornly resisted the idea of the States selling themselves to French
interests on international territory for the sum of 800 million dollars—the French
funds in America. It is a fact, however, that Hoover promised Laval not to undertake
anything pertaining to the question of reconstruction and regulation of debts
without first consulting the French government. When Wall Street found out
about this, Hoover lost the respect of this circle at one blow. Even the subsequent
elections were affected—many believe that Hoover's failure to get reelected can be
traced back to the issue. One forgets that Hoover was in the middle of a difficult
situation. On one side, the American banking world with the Federal Reserve
Banks at the head,who represented the opinion that Am erica could readily dispense
with the French deposit if it was misused by France to hold moral influence over
the U.S. government in the field of international politics. On the other side stood
theTreasury Department, whose leaders would do anything to avoid a dollar panic,
pointing to the English precedent.
In October, 1931 the situation was tense on Wall Street and the atmosphere
was ominous. At the end of the month I received the following letter from Hitler
in Berlin:
Our movement is growing rapidly all over Germany, puttinglarge
demands on our financial organization. I have used the
money you procured for me to build up the party and realize
now that I will have to leave the country in a foreseeable amount
of time if new revenue is not supplied. I do not have access to
huge government financial sources, as do our enemies the
Communists and Social Democrats, but am dependent completely
on parry contributions. There is nothing left of the
amount I received. Next month I must begin the last great action
that will bring us power in Germany.
A great deal of money is needed. I ask you to report
immediately how much I can count on from you.
Two things struck me from this letter. It was the first time Hitler had used the
word party with me. His tone in the letter was more one of command than one of
a petitioner. Although the letter was dated from Berlin, it arrived in an envelope
postmarked in New York with an American stamp. Hitler must already have had
supporters in the States, specifically in New York.
The next day I was at Carter's, and I gave him the letter. Carter was the leader
of the opposition to the 'Old-Wives' behavior of the government, as he called it,
regarding the French demands. The report of Hoover's reversal had angered him
so, that he vented his fury over France to whoever would listen. Carter was a hottempered
man. He read Hitler's letter and began to laugh, then swore and called
himself an idiot. He said to me: "We are such dopes. Since 1929 we haven't thought
17
of 'this man' Hitler. All this time we had the means right in our hands to put
France down, and we didn't use them. Just wait, we will hold a meeting here this
afternoon, and I will try to reach Montagu Norman from the Bank of England, who
is here in New York. If he comes, then we can play our trumps. You must come too,
of course."
The meeting at the offices of Guaranty Trust Co. was fully attended. I can only
explain this by the fact that the tense situation of the New York stockmarket
required the presence of its leaders, and Carter had reached them all easily.
Opinions were divided. Rockefeller, Carter, and McBean were the Hitlerians, if I
may call them that, and the others vacillated. First, Montagu Norman had to be
informed of the events in 1929. He found the sum of ten million dollars to finance
a political movement very high, an opinion not understood by the rest, since it was
well known that political parties in England spend huge sums on propaganda.
Glean from Royal Dutch shared Montagu Norman's view. He added that there was
little aggression against France in the publications of the Hitler movement. He felt
that Hitler was a loudmouth and would never act. He also noticed how Hitler had
obviously changed his "movement" to a "party," a transformation that would place
great importance on his parliamentary efforts. Glean closed his commentary by
saying that there had been enough talk, in Germany more than elsewhere, and a
man like Hitler would play along with the majority of his followers in the Reichstag
without changing anything in the existing situation. Carter and Rockefeller argued
against this view, saying that even if Hitler achieved a majority in parliament he
could not be dissuaded from the platform binding him to the German people, and
was obligated to use what he had written and spoken of as the only method of
pulling the country out of difficult times. He would have to go out on the streets
with his followers while keeping up parliamentary efforts at the same time, if he
didn't want to lose his immense support. It was finally agreed that in principle
Hitler should be assisted further, but someone should be directly informed of the
situation in Germany and in the Hitler party before the amount was determined.
I was asked if I was prepared to take on this assignment and to telegraph the amount
to Carter as before, then signing it over to Europe in the same way as in 1929, or
whatever way I thought best.
I was not able to free myself immediately from my own affairs, so after ten days
I traveled to Europe.
Much had changed in Germany since 1929. The National Socialist movement,
whose "Fuhrer" had received me in a beer cellar in 1929, had reached the
upper levels of society and had his headquarters in the same city, in one of the most
beautiful buildings in the best part of town. The National Socialists had their own
houses everywhere, in the cities of Berlin, Hamburg, Frankfurt, Dusseldorf, Koln,
two uniformed watchmen always stood in front of each, day and night as in front
of a barracks.
I saw numerous passersby salute the watchmen with an arm movement similar
to the fascist greeting, each shouting simultaneously "Heil Hitler." It didn't take
much study to see that Hitler's following had increased enormously since 1929. I
18
could cut my trip through Germany short, because I saw the same picture
everywhere. On Saturday afternoons and Sundays the majority of the young people
in most cities donned their uniforms and marched in formations differing little
from military groups. It is true that there were differences between uniforms, but
most were brown and black. Swastikas were everywhere, the emblem of the Hitler
party. Even women had swastikas on the rims of their purses—the saleslady in the
cigar store in Berlin, where I shopped regularly, wore a huge swastika on a thin
necklace. This was no silly decoration, the intent to display conviction was obvious.
I had a talk with a bank director in Hamburg whom I had known well in the past.
He was quite taken in by Hitler and confessed that earlier he had trusted the German
Nationalist Party more, but now he doubted their success because monarchists
were in control of it, and the German people had not forgotten the treason of the
imperial family in 1918. It was hard for me to take his opinion seriously, because
he was a Jew. I needed an explanation, so I asked him how it was possible for him,
as a Jew, to be sympathetic to Hitler's party. He laughed. "Hitler is a strong man,
and that is what Germany needs. The compromises and vacillations must finally
come to an end. The German people are not mature enough for democracy. When
the Kaiser ruled the country badly, and he alone was responsible for the administration,
not one person objected, everyone fulfilled his tasks, understood his duty.
The Germans are quite another story from the English and Americans. They must
have someone they can look up to, then they will do whatever is ordered just because
the strong man is giving the orders. They have always had basically nothing but
contempt for an Ebert, even the Social Democrats, and regarding Hindenburg,
they respect him, but regret that he can't act as regent in the true sense of the word.
Since 1918 we have had Chancellors who were commoners, who had reached the
top of the ladder through politics. No one respected them. A prince of pure blood
in opposition to the Kaiser would have made a good Chancellor." I remarked that
Hitler also came from low origins.
"Of course, but that is a different story. Hitler worked himself up and did not
crawl into a political party to reach his goals, but created his own party from scratch.
You will see that Hitler is on the rise. It will only last another year, then he will be
the man. He began in the trenches and will finish as dictator." Again I posed my
question of how my informant, as a Jew, could be a member of the Hitler party.
He passed over the question with a sweep of his hand. "By Jews Hitler means
Galician Jews, who polluted Germany after the war. He recognizes Jews of pure
German origin as equal to other Germans, and when the time comes he will not
bother us in any way. Also you must not forget that Jews control both the Social
Democratic Party and the Communist Party. He will have to win these over, not
because they are Jews, but because they are Communists or Social Democrats." I
interjected again that Hitler was still against Jewish bank capital, I can even say
against banking in general. My informant thought I was very naive. He added that
Hitler's platform could not be fulfilled on every point, and Hitler knew that very
well. "He has to make unrealizable demands to win over the masses, and this is
certainly the least that should worry us. When Hitler comes to power he won't have
19
to be so careful of the masses; then he will be strong enough to push through
whatever he wants."
Two days later I spoke to an industrial magnate. He was also a follower of
National Socialism. I also read all the newspapers, and tried to make a coherent
summary of the political streams in the German press; I concluded that the
National Socialist Party showed the greatest activity, had established its roots in all
levels of the population, and that opposition from Communists, Social Democrats
and other parties was lukewarm and definitely uncoordinated.
I became more and more convinced that Hitler was not experimenting, but
wanted to achieve a clearly defined goal, supported by the majority of the German
people. It was now time for me to contact Hitler and I wrote to the Berlin address
I had received from him, and took a room in the Hotel Adlon. The next day I was
called to the telephone while I was reading newspapers in the hotel lobby. A voice,
very likely a woman's, asked me if I would be in my hotel evenings, and referred
to a letter I had directed to the "Fuhrer."
I received von Heydt and a newcomer in my room. He was introduced to me
as Luetgebrunn. After a short statement from von Heydt, Luetgebrunn began to
speak. It was as if he was making a prepared speech, he glanced at a bundle of notes
from time to time.
"Our activities with the unemployed have succeeded against all expectation,
but do cost a lot of money. Our organization is military and therefore also not
cheap. Our houses in various cities are all set up like barracks, our people sleep there,
cat there, everything at the cost of the party. We provide uniforms, those who have
the money buy them, but the unemployed should not be driven away by the costs
of equipment. For that reason we are obligated to donate free uniforms and other
equipment to our unemployed members. Some of our transportation vehicles
belong to party members, but we have had to provide our own trucks and other
transportation in the areas in which we have not much following. There are party
members who are not able to lend us their trucks because they are afraid of losing
customers. Then there are weapons to think of. We have to buy our weapons from
smugglers, and their demands are high. We have our buying posts on the borders
of Austria, Holland and Belgium, but often the weapons are confiscated by the
authorities, thousands are lost and we have to start over again. We have not
established directcontact with weapons factories; the only one we have contact with
is the F.N. Fabrik in Belgium, but the amount we have been guaranteed is too small.
Our Storm-Detachments are incompletely equipped. We can't buy machine guns.
Revolvers and carbines are not sufficient on the streets, streams of unemployed join
up in the cities and every new man costs money."
Luetgebrunn continued in this vein for quite a while. Then it was von Heydt's
turn, and he informed me that the "Fuhrer" would receive me the next day at eleven
in the morning in his house on 28 Fasanenstrasse. I would just have to give my name
to the maid. No. 28 Fasanenstrasse is an ordinary family house. I could not tell from
the outside that the "Fuhrer" lived here, no brown uniforms, or any other sign. An
ordinary visit to an ordinary citizen. Hitler had aged in the two years I had not seen
20
him. Yet I found him less nervous, more dignified, more carefully dressed, I could
say he was more self-confident. He seemed pleased to see me again, because he asked
me with interest about all sorts of details concerning myself. Then, according to his
usual custom, he began with the main issue without introduction.
"I don't have much time. Luetgebrunn has informed you of everything
already. What has America been saying? Give us one more year and we will have
the power in our hands. Do you read the Reichstag reports? What do you think of
our showing? When one of our delegates stands up, everyone listens, and the red
hordes tremble and quiver. We'll get those greenhorns. They have betrayed and
sold out the German people, and we will punish them for it. We have prepared a
mobilization plan that will run as smoothly as a clock. One of my best partners is
Goring. I have entrusted this to him. Our troops can be mobilized over the whole
country in two hours to go out on the streets. First come the Storm-Detachments,
whose task it is to occupy the buildings, take the political leaders and members of
the government who don't collaborate with us prisoner. Then come our other
people, who will occupy the buildings continuously, and our organization will be
complete. If blood has to flow, then it will. Revolution is not made with a
handkerchief; whether the handkerchief is red or white has nothing to do with it.
Traitors can only be taught how to behave with force."
I wanted to ask here what the foreign policy would be. Hitler stood up and
strode with large steps across the room. "Foreign countries will be divided into two
camps. Our enemies and our competitors. Our enemies are first of all France,
Poland and Russia, our competitors are England, America, Spain, Scandinavia and
Holland. We have no score to settle with any of the other countries. The population
of the Alsace-Lorraine must be brought to revolution, as well as Silesia. That is our first
task, as soon as we can get power. If France wants war, then war it will be. We don't
recognize the Treaty of Versailles. I want to see Germany and the German people
free. If we are not allowed to arm ourselves, then we will do it secretly. All German
governments have shown all their cards to France. We won't do this. Our divisions
are not regiments, our weapons are not war materials. In two years I will build a
German army strong enough to surround France. I will have the chemical industry
adapted for war purposes. The situation with our competitors is even simpler. They
can't live and work without Germany. I will make demands. Wherever German
products are turned down by high import taxes, unlimited production must still
be kept up. The German people must be totally self-sufficient, and if it doesn't work
with France alone, then I will bring in Russia. The Soviets can't miss our industrial
products yet. We will give credit, and if I am not able to deflate France myself, then
the Soviets will help me."
I must make a small remark here. When I returned to my hotel I wrote this
conversation down word for word. My notes are in front of me, and I am not
responsible for their incoherence or incomprehensibility. If you think his views on
foreign policy are illogical, it is his fault, not mine. I will continue.
"Stalin has made plans, and he will succeed because he has won over the
Russian people. I will also make plans and hold myself strictly to them; what the
21
Russians can do we can do twice as quickly, twice as intensively. After one year of
my government there will be no more unemployment in Germany. Jews will be
excluded, as well as Communists and Social Democrats; the camps I will lock them
up in are already being planned. The Reichswehr is already in our hands to the last
man. The government hasn't even noticed this, but I will leave them to their
blindness—I am certain of my control. Goring and Gobbels, Streicher and von
Heydt have been to Rome many times and have spoken to Mussolini, Rossi,
Dumini, and other fascist leaders about the whole organization there. We are also
building up our organization according to our own circumstances. Mussolini and
Stalin, the first more than the second, are the only leaders for whom I have any
respect. All others are a bunch of old wives. Stalin is a Jew, that is a shame. Did von
Heydt tell you how much we need? When your letter came we calculated everything
exactly. Have you any idea in America of how many difficulties we have here? If
everything followed the usual political channels it would be easy, but there is not
one city in Germany where I am not joyfully received. I will certainly achieve a
political majority, but the people must be afraid, in case the NSDAP doesn't shrink
from using other methods to reach my goals, in case my parliamentary political
moves don't succeed. We can only create fear by displaying power. This is only
possible with uniforms and weapons. If a couple of Communists should be killed
by a group of Brownshirts, that is of the same propagandistic value for the party as
a speech of mine. Mussolini has introduced a new period in politics. He is the first
one to carry out domestic policy with something other than big words and
parliamentary motions. In short, everything we need to display our party as apower
to foreign countries and to overawe the people costs money. I wrote you at that time
because our time is running short and the moment has arrived to take the situation
quickly in hand. In some places we have been obliged to turn away the unemployed.
That is regrettable at this point, because everything can be done with the
unemployed if we can only give them uniforms and food. Are you familiar with our
barracks? I will let you see one of our houses here in Berlin. I don't need anything
from wealthier people who fear for their possessions when things get rough. We
need the ordinary worker, the proletariat, they, after all, have nothing to lose. Have
you also spoken to Luetgebrunn? He is a lawyer, but an intellectual of the good sort.
Generally I don't think much of intellectuals. They always bring up science and
historic teachings. What have they accomplished with all their knowledge?
Nothing. Now it's our turn, now let the fist and sword speak. Work and fight, surely
that must be the complete life. Dreams and speeches have never accomplished
tnything. Do you also have connections with the Reichsbank? There is supposed
to be great confusion there. Once I get there I will clean everything up. Schacht
seems to me to be the best of the lot, but he is a doctor, and that I don't like. These
people have mostly become untrustworthy because of all their fabrications. We
must put an end to this studying and dreaming. Young people must work the land
and be drilled so they can fight, if it should soon become necessary."
His pacing back and forth in the room was making me nervous. It could also
be that his sharp words and the lack of a consistent train of thought in his
22
conversation were making me tired. But Hitler continued, "If I lived in America,
then I would have nothing to do with politics; there the people are really free, and
it is a privilege to be an American. It has become a disgrace to be a German in the
last few years. We will see that it becomes an honor again. Do you know that they
won't give me this shameful name? I was born in Austria, so I am not a German.
Ridiculous. They will recognize me on their knees, not as one of them, but as one
above them. The Communists are beginning to be afraid, the Jews think it won't
really go on like this, and the Social Democrats still believe they can save their skins
with parliamentary speeches and motions. The best people here in Berlin are
Communists, their leaders complain to Moscow of their bad straits and demand
help. But they don't realize that Moscow can't help. They have to help themselves,
but are too cowardly for that. The most difficult issue now is our relationship with
the churches. The Lutheran-German church is giving me trouble, the other
Protestant churches will soon adapt themselves. But the Catholics. You must know
that I am Catholic. The Center Party1 is very strong and can accomplish something
with the support of Bavarian parties. We must neutralize this party so that we are
the strongest. I know well that there are also scoundrels in it, but I will leave them
alone for the time being. The Bishops are coming forward against National
Socialists in some districts, there are priests who give no absolution to National
Socialists and deny them communion. A good beating would change this, but that
is not good tactics right now; we have to wait."
"So von Heydt mentioned no sum, nor did Luetgebrunn. No, he couldn't, he
didn't know the amount. You will see, we have calculated everything exacdy, and
will leave the choice up to your backers. There are two possibilities. Either we go
out on the streets as soon as our Storm-Detachments are completely organized,
which will take three months after we get the money. Or we work persistently with
votes and keep our troops in readiness if they should be needed. The first we call
the revolution plan, the second we call the "legal takeover" plan. As I said, the first is
a question of three months, the second of three years. What do you think of this
yourself?"
I could do nothing more than show ignorance by shrugging my shoulders.
"Naturally you Americans don't know the situation here, and it is hard to say
which is the best method to use. But what do you think your backers will say?"
Again I could give no answer. Hitler continued.
"You see I am not even clear myself, nor are my co-workers, which path we
should take. Goring is simply for revoludon, the others more for legal takeover, and
I am in favor of both. Revolution can put power in our hands in a few days, legal
takeover requires long months of preparation, and a lot of underground work. Of
course there is a reason why we haven't been able to make a decision, and it is that
we don't know how much money we can count on from your backers. If you had
been more generous in 1929 things would have been setded long before this, but
we were barely able to carry out half our program with ten million dollars. I will
1 Catholic Party
23
itemize our calculations for you. Revolution means we attract people by large
donations to the unemployed, buy weapons quickly and organize our Storm-
Detachments. Smugglers will take advantage of us and demand prices that will
severely cut into our funds. With a lot of money we will certainly succeed in
smuggling in machine guns, it makes no sense to open our attack without machine
guns."
"Legal takeover on the other hand, when it has finally been completed, after
we have forced different elections by obstruction in the Landtags and Reichstag,
then the masses will be tired of voting and will be easily bluffed by our clever
propaganda. While we take care of our parliamentary work we arm our people and
organize the Storm-Detachments. Then a few repeated demonstrations from time
to time against the Communists will be enough to give the people an idea of our
armed power. In addition we will use the time to penetrate even deeper into the
ranks of the Reichswehr. The elections, by giving us an effective majority, achieve
the same tesult as revolution would in three or four months. I would like to have
both ways. Everything depends on the money."
Hitler sat down at his table. He took out his litle notebook, looked up at me,
and continued.
"Revolution costs five hundred million marks, legal takeover cost two hundred
million marks—" He waited. "What will your backers decide?"
I couldn't answer. I promised to contact New York and report as soon as
possible what they had decided. Hitler took up the conversation again and began
to ramble.
"You people there in America must be interested in our party coming to power
in Germany, otherwise you wouldn't be here and ten million dollars would never
have been given to me in 1929. Your motives don' tinterest me, but if you understand
the situation well you will surely realize that I can't get anywhere without financial
means. The Communists here get money from Moscow, I know this and can prove
it. The Social Democrats are supported by Jewish bankers and other large banks,
and have a huge treasury. German Nationalists get huge sums from large industry,
and their leader Hugenberg owns several newspapers that earn big profits. The
Center Party gets whatever money it needs from the Catholic Church, which has
billions at its disposal, especially in South Germany. When I compare that to the
meagre forty million marks I received from your backers in 1929, then I can hardly
believe that we could have dared to start our planning with such limited funds. You
must have noticed how we have progressed in Germany and here in Berlin since
1929. Aren't you amazed at these results? Should I tell you something else? The
Reichswehr is National Socialist through and through. You know that already, but
there is not one civil service our party does not have a strong following in, we are
especially powerful in the railroads and Post Office, and when our revolutionary
slogans are circulated in a few months we can put our hands on these state
institutions without too much trouble. When I spoke to you in 1929 I had to admit
that the North and Rhineland were still lukewarm. Now that is completely
changed. We are well organized even in Frankfurt am Main, where German
24
Nationalists and Communists have a strong following. Party members are sitting
in numerous foreign consulates, and will participate actively at the first signal from
Berlin. Doesn't all this mean something? Doesn't it prove that those "paltry" forty
millions were well invested? But everything now must go well and quickly, and our
money is used up. Tell your backers that they should, in their own interests, send
the five hundred million marks as quickly as possible, then we will be finished in
six months at the latest."
Hitler screamed out these last sentences as if he stood at a political rally, and
he assailed me as if I were his worstenemy. I had had enough. I repeated that I would
report to New York and let him know as soon as I could. I telegraphed that same
day. It took five days to receive an answer from New York. In those five days I had
the feeling that I was never alone. Except, of course, during the hours I spent in my
hotel. I thought I saw people everywhere who followed me. I still don't know if it
was reality or my imagination, but I could think of several different occasions that
are strong proof of a continuous control hanging over me in those five days. But
I don't want to stir up the detective instincts of my readers. There is, however, one
case I would like to relate. The second day after my conversation with Hitler I went
on the Kurfurstendamm towards Wilmersdorf. An old friend of my family lived
in a small villa there. I wanted to visit him. As I went down the Kurfurstendamm
and turned into the street where the villa stood, I clearly saw a man pass in front of
me whom I had noticed at least three or four times in front or behind in the last ten
minutes. I arrived at the villa and was just about to press the electric doorbell when
I saw a small box outside the bushes. Printed in pencil on it was the word: absent.
I didn't ring. That evening I telephoned my friend's house from my hotel. I could
get no connection, and after waiting several minutes the operator told me that no
one was at home. This still seemed very normal and natural in Berlin, but later—
I had written my friend a letter on my last day in Berlin and said how much I had
regretted his absence—I received an answer from him in New York, in which he
said he had not been away from Berlin, and could not understand my statement
of his absence. I also didn't understand the story until I learned at the beginning
of this year that our old family friend in Berlin was a well-known Social Democrat
and had flown to Switzerland. We Americans are generally only mildly interested
in the political persuasions of our friends. I had never known earlier that he was a
Social Democrat, but now the incident in 1931 is clear, and I believe I was not only
being shadowed personally in those five days, but my telephone and hotel room
were also under control. We should not forget that in 1931 Hitler was not yet
Reichskanzler, just leader of a strong political party.
Carter's answer was unclear. I wired back: "Repeat," and then received a long
cablegram:
Suggested amounts are out of the question. We don't want to
and cannot. Explain to man that such a transfer to Europe will
shatter financial market. Absolutely unknown on international
territory. Expect long report, before decision is made. Stay there.
Continue investigations. Persuade man of impossible demands.
25
Don't forget to include in report own opinion of possibilities for
future of man.
So Carter had no great belief in Hitler's financial capabilities. He would wait
for a detailed report from me before making a decision and expected me to convince
the Fuhrer of the impossibility of his demands, and to include my own opinion on
rhe chances for success in the report.
I wrote Hitler ashort letter and described the content of the telegram. Two days
later two men I hadn't met yet, Goring and Streicher, visited me in my hotel. The
first was an elegant-looking man, dashing in appearance, very brutal, and the
second made a feminine impression on me.
Goring opened the conversation by expressing his amazement that I did not
share the opinion of the Fuhrer. It would certainly be difficult as an American to
understand the German situation, but the Fuhrer had informed me so well of the
plans and platform of the party, rhat I should be well on top of the situation. I
countered immediately that my views were irrelevant, I was not the one with the
money, but just a middleman. He didn't seem to believe this, and continued to
speak to me in a personal way, denying the fact that I had backers behind me.
Streicher entered the conversation with an unctuous tone. I could not stand the
man. I preferred Goring's brutality a hundred times over, however unpleasant it
was. We couldn't agree. I explained I don't know how many times that I could
change none of the circumstances, that I had sent off my report to New York that
same day and had to wait for my backers' decision. Goring finally became furious
and said literally: "This is all a swindle. We didn't call on you. First you dangle a
huge sum of money in front of our eyes, then when we tell you how much we need,
it is much too high for you and the gentlemen don't come up with the goods. You
are swindlers." This brutality made me mad and I showed Goring the door. He left
with Streicher without saying good-bye. I immediately wrote a short letter to Hitler
and requested him to deal with me personally in the future and not to send any more
representatives, especially not Goring. I related briefly what had happened, and
added that I wanted nothing more to do with Goring again. I don't know what
transpired between Hitler and Goring, but the next day I received a short letter from
Goring offering his apologies and blaming his behavior on the great tension he lived
under being a party leader along with Hitler.
The next day, however, two men were announced again. Americans make a
grave mistake in Europe. They receive anybody after a simple announcement. In
America it makes no difference, everything is accomplished quickly. Superfluous
speeches seldom take place in the business world there. I received the two men: von
Heydt and a new figure. Introduction: Gregor Strasser. A more refined type than
Goring, but equally brutal underneath a cover of formality. Von Heydt opened the
conversation. I hardly listened and interrupted him. All this talk about party leaders
made no sense at the moment. I had to wait for New York's decision. If Herr Hitler
wanted the opportunity to speak to me, I would gladly discuss things with him and
attempt to make the position of my backers clear. Strasser intervened. Did I share
their point of view? "I have no point of view in the whole situation. I am carrying
26
out an assignment. The answer they sent me was, however, left in code, and even
though I passed it on to Hitler, it might be possible that I could explain certain
points further. This is how my statement should be interpreted."
Strasser began to expound on the party platform. I had the impression that his
job was mainly to work with the unemployed. He reproached, without being crude,
however, the union bosses and the Social Democrats. He listed forty, fifty names
one after the other and pointed cold-bloodedly to the wall, saying quietly: "This is
where those fellows will be standing with ten sharpshooters in front of them." The
coarsest words he used were rascal and dog, but he uttered these as calmly as
everything else. I had had enough of this chatter and asked the men to leave me
alone, as I had still a number of letters to write. Strasser gave me an invitation to
attend a National Socialist parade in Breitenbach the following Sunday.
An overwhelming sight. On a field with gnarled tree stumps stood five Storm-
Detachments in formation, listening to the priest who held the field service. I have
remembered the following sentences from the priest's sermon. They gave me a
much clearer understanding of German National Socialism than all the words of
Hitler and his leaders.
"You are fighters for God. Day in, day out the best blood will be spilled because
you have heroically put up your lives as bulwarks against Bolshevism, to save 2,000
years of Christian culture from ruin. You, you have inscribed the bitter fighr for
German nature and race on the red flag of the people with its white field of purity
and loyalty and the runic sign of victory, you are satisfying your own consciences
as well as God's. Do not let yourselves be led astray, and do not be intimidated."
"The spirit of Christ is the spirit of conflict, against Satan and against his hell.
The enemy that Christ wanted to conquer by his crucifixion aspires to rise again
right at this moment, the enemy, the eternal Wandering Jew, has decided to take
revenge. He endeavors to destroy the holiness of marriage, and to poison the purity
of custom and the soul of the people on purpose. Christian brotherly love must be
brought into the battle, because the existence or nonexistence of Christianity is at
stake. Comrades, our batde is a vital defense, our nationalism is the savior of people
and fatherland. Do not listen to the politicians who designate our fanatic
nationalism as misdeed, condemning all nationalism. Our nationalism is the same
as that of a Pastor Wetterle, as that of a Cardinal Mercier von Mecheln, of Cardinal
Dubois in Palis, who with thousands of their priests inflame the French people to
a burning love of their country and encourage stamina for victory with glowing
enthusiasm. What is good enough for the French and Belgians is equally good for
us Germans. In the burning world of 1914 the enemy stood at the German borders,
today the enemy rests in the core of our country, subjugating our people and
enslaving it. In August 1914 millions, blessed by the church and protected by the
prayers of the church, went to the murderous battlefields to save people and
fatherland. What was permitted then, even demanded of our priests, should now
be forbidden as evil teaching? ...Comrades, that is a lie. So I say to you, to be
National Socialist is to be a fighter for a people that is prepared to defend its religious
beliefs, its purity of custom, and its honor to the last breath. You are a providence
27
of God, because you want to banish the underworld with its deadly poison of
dissension. The blessing of God rests on your battle. And now let us remove our
helmets. Let us fold our hands and sing, as the Dutch Geusen did before the last
decisive battle, so that it will ring a thousand fold all over the land: Lord make us
free...."
The prayer of thanks is over. The field service is at an end. Sharp commands
ring all over the field. The brown rows line up to march off.
Two policemen in green uniforms watch the Storm-Detachments with
interest. The police are all at their posts. They had strict orders to watch all
movements of the Storm-Detachments all over Germany, especially in Prussia.
Secretary of the Interior Severing spoke last week in the Reichstag about these
dangerous preparations for takeover by the NSDAP1. Three days later I received
a cablegram from New York: "Report received. Prepared to deliver ten, maximum
fifteen million dollars. Advise man necessity of aggression against foreign danger."
I wrote to Hitler again to arrange a meeting. I told him that I had received word
from New York and that I preferred to inform him of its contents personally. That
same evening von Heydt, accompanied by Strasser, visited me. "The Fuhrer is
overworked. Upon the advice ofhis doctors, he must have at least two weeks of rest."
They had full powers to act in his name, for which they had proof. Reluctandy I
described the contents of the telegram from New York.
Von Heydtsaid: "Fifteen million dollars"—he chose the maximum immediately—"
is not much for our massive plans, but I know the Fuhrer will accept it.
Now there can be no talk of revolution. It is not as easy as Goring and the others
imagine. I would even gladly go out on the barricades myself. I have had enough
of these conditions. But we can't put foolish ideas in our heads. We would be shot
down before we knew what happened. That would be irresponsible to our Fuhrer.
Now we must go to Hitler with proposals to organize ourselves more efficiendy and
to train our people. To have a revolution now would show a lack of soldierly and
comradely spirit, provoking sacrifice is a communist idea. We will have nothing to
do with that. Sending the Storm-Detachments to the barricades now would mean
the destruction of our movement, would spill blood, valuable blood for nothing,
and the flag of chaos and desperation, the flag of Bolshevism, would be planted on
our dead bodies. In the past few weeks we have had an influx of new elements in
our party that are even harder to handle, they come from other parties and have
other viewpoints, and they have to adapt to our world."
Von Heydt, just like all other leaders of the National Socialist party I have met,
seemed to be possessed by a mania to broadcast, either rightly or wrongly, the
platform and tactics of the party as if he were at a political rally.
Strasser asked me when I thought the fifteen million dollars could be payed out
to Germany. I answered that it was a question of a few days, as soon as I knew that
Hitler agreed with the determined amount, but I would only take the necessary
measures to sign the amount over to Europe when I had had a discussion with
1National Socialist Party
28
Hitler. Von Heydt explained to me that this was temporarily impossible because
Hitler had to have rest. To wait for his return would mean great delay. If I insisted
upon it then tomorrow or the next day a meeting of all party leaders could be
organized, and I could report there what I wanted to say to Hitler personally. I kept,
however, to my demand and said finally that I would do nothing until I had spoken
to Hitler personally.
The next day at noon I was called away from lunch in my hotel. A chauffeur
awaited me in the hall and gave me a letter. It was written in Hitler's handwriting,
and it requested me to come to his house in the automobile waiting there. Aquarter
of an hour later I sat in his room on the Fasanenstrasse. I noticed neither fatigue or
sickness on him, but said nothing of his health, just carried out my assignment
direcdy. Hitler stood up, and while he walked up and down the room he shrieked:
"Fifteen million dollars, that is about sixty million marks. How long will it be until
it gets here? It is much too little to really tackle the problem. You Americans don't
know our plans."
I remarked that fifteen million dollars was the maximum, and he could tell
from the copy of the cablegram I showed him that ren million and a maximum of
fifteen million were offered. He listened at first attentively. I took the opportunity
to refer to the necessity of an aggressive stance towards foreign countries as
mentioned in the cablegram. Supposedly America had the impression that his
actions in other parts of Europe had not really had effect. I didn't want to go any
further. Perhaps he would realize what my backers meant. But Hitler began to
shriek again. "Do you think I can perform miracles here with our people? Do you
have any idea of the apathy of the Germans? This 'pack of Jews' has imposed a spirit
of swindling, acquisitiveness, internationalism, and pacifism. Day in, day out we
must fight it: first we must teach the people courage, then we can do something."
"There is no discipline in Germany, and we must start from the very beginning
again. Just wait until we are finished with out work on the German people, then
we can think about foreign policy. Read our platform. We will not stray from it one
inch. Read points 1 through 7. Point 1. Establishment of a unified national state,
including everyone of German origin. The explanation of this runs: we will not give
up one single German in the Sudentenland, in Alsace-Lorraine, in Poland, in the
League of Nations colony of Austria and in the succession states of old Austria. Read
the explanation to point 2: we don't want Erzberg's and Stresemann's servility
towards foreign powers; soon it will be seen that foreign powers will have much
more regard and respect for a strong representation of German interests. The result
of our new stance will be consideration and attentiveness to German wishes on
foreign and international territory instead of kicks and beatings. Point 3 says:
removal of Jews and all non-Germans from all responsible positions of public life.
And Point 4? Immigration of Eastern Jews and other inferior foreigners will no
longer be permitted. Unwanted foreigners and Jews will be turned away from the
country. Read Point 6 again: whoever is not German can only live in the German
stare as a guest and is subject to laws pertaining to aliens. Point 7: rights and interests
of Germans supersedes rights and interests of foreign citizens. Above all we have as
29
our goal the rebirth of Germany in the German spirit for German freedom. What
more can you want? We will adhere to this program and will fulfill it to the last letter.
I know that I will have France, Poland, Czechoslovakia, maybe also Prussia, Italy
and Hungary on my neck because of this. That is irrelevant at this point. We will
deal with that once our people are prepared to take on the consequences of German
politics in the interest of the German people, with no reservations. The people have
become bastardized and foreign customs must be driven out of them." Hitler sat
down again and thought. Then he spoke more calmly.
"Good, I will take the fifteen million. We will carry out our program, but our
tactics will change. I will choose the slow path, the path of legal takeover, but we
will succeed. A change is already coming over President Hindenburg. I will be
finished when I have moved the aristocratic clique that surrounds him out of the
way. His son thinks nothing of me and incites his father against me. The president
is an old man. He lets others influence him. Just give me the fifteen million. Von
Heydt will make the arrangements with you as to how I will receive the money."
I explained further that it was possible my backers would send the fifteen
million in two installments, one of ten million and later one of five million, and they
would wait for information from me before doing anything. I referred once more
to the meaning of the conditions in Carter's telegram—a vigorous foreign policy.
This time he didn't preach the standard phrases about his platform, but said directly
and quietly: "Just leave it to me. What I have achieved already is proof of what I can
do in the future."
The conversation had come to an end, which pleased me very much, a
conversation with Hitler is an exhausting thing. He yells and raves at you.
Obviously he is so used to speaking at national assemblies, it takes hold of him so,
that he can't carry on a normal, quiet conversation.
That same day I wired a detailed report of my conversation with Hitler to New
York and referred for the moment only to his plans for foreign policy and his firm
promise not to stray an inch from his party platform. I didn't think this would be
enough to satisfy Carter and his colleagues regarding an aggressive foreign policy
by the National Socialists, and thought the deal would be closed.
Three days later I received an answer from Carter that contradicted my
opinion. Fifteen million dollars would be delivered upon my first request to a
European bank indicated by me. I promptly gave this answer to Hitler. Von Heydt
looked me up and asked me to transfer the money to Europe immediately in the
following way: Five million dollars in my name to Mendelsohn & Co., Amsterdam,
five million to the Rotterdamsche Bankvereinigung, Rotterdam, and five million
to the Banca Italianna in Rome.
I traveled to these three places with von Heydt, Gregor Strasser and Goring,
to deposit the amounts. A huge number of checks had to be made out to many
different names in large and small locations in Germany. The National Socialist
leaders had long lists of names with them. In Rome we were received in the main
building of the bank by its President-Commissioner, and while we waited in his
office for five minutes two fascists whose uniforms obviously indicated high ranks
30
came in. Introduction: Rossi and Balbo.
Goring opened the conversation. He spoke Italian to the men. I couldn't
understand what was said. We were invited to a dinner at Balbo's house. I was the
only one not in uniform. The National Socialist leaders wore their brown uniforms
and the fascists their black ones. After dinner everyone danced in a huge hall, with
open doors looking out on a magnificent garden. The brown uniforms were much
preferred by the ladies. An old Italian, a black-shirt with many decorations, sat next
to me and watched the dancers. He began speaking in German. "Italy should never
have given up its alliance with Germany. Then we would be in a much stronger
position against France. But our German friends are on the right path, and when
revolution becomes reality then the good old days will come back. There is no better
combination possible: Italian culture with German spirit, they will renew and
conquer the world." Three days later I traveled on the Savoya from Genoa to New
York.
Carter called a full meeting the next day after my return from Europe.
Rockefeller asked immediately if I thought Hitler would dare an open battle with
Hindenburg. I said that I felt Hitler to be capable of anything if it would further
his goals. He was also no dreamer and was very aware of difficulties he faced, he
would not experiment if he was not sure of success. I was asked to quote what was
said in my dialogues with Hitler literally. I was also questioned on my impressions
of conditions in Germany. When I gave the opinion of the Hamburg banker, Glean
wanted to know if well-to-do classes in Germany feared Hitler's financial policies
and his "breakdown of the enslavement of finance capital" as Hitler called it. I
answered by quoting the Berlin industrialist and the feeling of the Hamburg
banker, that points can be found in every political platform that are only there to
please the masses, and will never be put into practice. I formed the conclusion that
the wealthy German classes (according to Hitler's wishes) would not take these
aspects of the Hitler program seriously. Carter remarked that the requested
amounts I had wired were absurd and proved clearly how little understanding
Hitler had of international relations. I added that in my opinion this was not only
the case with financial relations, but I had also been amazed at his ignorance in the
area of international politics. No one seemed to find this significant—it is quite
common in America. Carter asked me what I thought about Hitler's co-workers.
I related the incident with Goring. This seemed to please him especially, andhe said
flatly that a man of Goring's type would be a fitting partner for a leader like Hitler.
A full year later, in September, after the National Socialist Party in Germany
received 107 delegates in the Reichstag on the 14th, Carter wrote me a short letter,
recalling my two trips to Germany and the conversations I had had with Hitler. He
asked me if I was prepared to go to Germany again to have a meeting with the Fuhrer
in case it was necessary. After my last visit to Germany I had received letters regularly
from von Heydt, Strasser, and Goring, along with extensive shipments of books,
brochures, and daily newspapers. I was now very familiar with National Socialism,
and the person of Hitler was no longer as mysterious to me through my contact with
him as it was for others in our circles. To see these people again in Europe was not
31
the most pleasant prospect. Neither the people nor their literature or propaganda
held much to attract me. Perhaps my German origins have faded into the routine
of American life. My grandfather came to America ninety years ago, my father was
born there, my mother is pure American. Perhaps for that reason I could not stand
the inflated arrogance of the German people, which was the key to Hitler's whole
program, and his work and goals were completely alien to me. In fact, I had
personally come to the conclusion that my friends were on the wrong path, that
Hitler's aggressive foreign policy might well make France more flexible and cooperative,
but it was also dangerous for the world. It is always well known where such
a dictator begins, but no one ever knows where it all ends. I had told Glean during
the course of the year of my viewpoint, and he tried to dissuade me with the
information that Mussolini, an equally violent dictator of a large country, had
cooled off after having caused anxiety in the world and especially in France with his
big mouth and threats, which was very good in his opinion, but when the going
began to get rough, (Mussolini) retreated calmly. It would be no different with
Hitler, he thought. It was certainly not our intention to cause war between
Germany and France, but just to threaten the danger of war, to make France
cooperate more in the possible support of England and America in international
financial affairs.
I finally made my decision. I informed Carter that I was prepared to travel to
Europe again and to deal with Hitler as soon as it was necessary.
32
n the sleeping car to Berlin I found an edition of a German daily newspaper.
This was the main article on the front page;
People are streaming in masses from the inner city towards
the Jahrhunderthalle, and the surrounding squares and buildings
for the assembly on the fairgrounds. Buses, trucks, private
cars and motorcycles are being parked in the nearest streets. To
the left of the autos run streetcars crammed with people, and
impatient women and men have waited since three o'clock with
folding chairs and food parcels in front of the entrance to the
building. By five o'clock the bridges over the Oder leading to the
fairgrounds are black with people and autos. Traffic is being
strictly controlled, but stoppages are still taking place. Cries of
"Heil" keep ringing when vehicles carrying party members and
Storm-Detachments, singing and displaying flags, arrive at the
meeting places. Police walk around with lunch bags and water
bottles. It is said that their squad cars are riddled with machine
guns and tear gas bombs. Special trains run one after the other
into the stations. Happiness, enthusiasm, bliss on all faces of
women and men, workers, peasants, citizens, officials, students
and unemployed, all are caught up in the excitement that adds
to the inner suspense of the huge election campaign. Unforgettable,
wonderful day. Hitler will speak.
For the first time the whole SA of the province will march.
There are Storm-Detachments among them who have sat in
open trucks for ten hours or longer before reaching the meeting
place. The SA columns are showered with flowers, it becomes a
triumphal parade. Raised arms greet each other constandy. Heil
SA, Heil.. .Drums roll, horns sound.
A crowd of thousands mills around in the gigantic concrete
building of the Jahrhunderthalle, the massive memorial reminding
the Prussian people forever of the great days of 1813. Long
banners are draped on the ramparts and arches of the second
largest domed building in the world. Written there is: "We don't
fight for mandates, we fight for our political ideology." "Marxism
must die so Socialism can live." There is no place in this
world for a cowardly people." "Attention, Attention," sounds
from the loudspeaker. "Everyone sit down, the SA is marching
in."
And they close in. The huge building trembles. A roar like
a hurricane breaks forth, twenty thousand people rise from their
seats. Between shouts of joy banners and flags are raised, one
covered with black. A mother screams. An unknown stormtrooper
has died a hero's death for his people. The Storm-
I
troopers march in. They can already be heard singing outside:
"We are the army of the swastika." Enthusiasm reaches the
boiling point. More columns keep coming. Men who know
nothing more than duty and batde. The floor shakes under the
marching feet, under the strength and discipline of the brown
battalions.
"Attention, Attention, Hitler has just arrived. Attention,
Attention." Excitement everywhere. "Heil, Heil." He comes,
thousands of eyes look for the Fiihrer. There he is.
Sharp commands, a joyful cry: "Adolf Hitler." Now silence.
The Gauleiter steps up to the microphone: "My dear German
comrades," he begins. After a few sharp sentences he closes: "The
Fuhrer will speak."
Again a giant roar, then the masses listen. Adolf Hitler
speaks. First slowly, measured, and cool. The first applause.
Hitler nods for silence. He continues to speak with more
conviction, irresistible, he becomes fervent and demanding, the
non-National Socialists are struck. What this front-line soldier
lieutenant first class Adolf Hitler, this man of the people, says is
all so simple, so ordinary and so right, and everything so true,
that know-it-alls, boastful of their development, and rational
ones with their eternal practical complaints, are all silent. They
follow the speaker with suspense. They have trouble understanding
this man, whom they have come to see out of curiosity,
but they applaud him.
Hitler indicates silence. "Those who belong to us know that
a turning point in the history of our people happens not every
five or ten years, but perhaps only once in a century..." Now he
shrieks loudly: "Party platforms are worthless." Those people
standing on the sidelines, the disappointed, the ones who have
been betrayed so many times, listen carefully.
"Thirteen years ago we were broken as a people, and a broken
economic life followed the broken people. Once, a hundred
years ago.. .at that time the ones who brought new prosperity
and happiness to the German people were not those who only
thought of the economic life, but those who gave blood and
possessions for the honor of the German people. It cannot be
otherwise. The German economic life is not broken, the German
people are ...." The front-line soldier Hitler is not speaking
of platforms, but of sacrifice, submission and work.
Now his voice sounds like a drum roll, now he speaks of
Germany, and how. Hearts are inflamed, what a testament, a
will and a belief as strong as rock. Hitler loves Germany, he loves
and fights alone for Germany, always only for Germany.
Eyes are shining, faces are resolute. The doubtful become
courageous, disbelievers begin to hope, the indifferent and
apathetic are taken up with him, and old soldiers are inspired to
33
34
new deeds. Hitler attracts them all into the circle of his mastery
with his glowing will to freedom. An enslaved people wakes up,
class distinctions fall away, no class-conscious workers and
discontented citizens, no, twenty thousand comrades believe
and shout with joy, believe in the Fuhrer and acclaim him.—
I read all this in the sleeping car on the way to Berlin. I also read that von Pfeffer
had been dismissed by Hitler, that von Heydt had stepped down from the party,
and that Strasser had been left cold because his brother had incited mutiny among
the Storm-Detachments.
I am almost glad that I accepted the assignment to meet Hitler for the third
time. Things are happening in this country that we only know through reading past
history. So very few have actually been charged with being there, standing in the
middle of things, speaking to the Fuhrer and learning his most secret motives.
A strange atmosphere hangs over Berlin. Whether it is the calm before a storm?
I don't know. No one speaks of politics. I visited the old friend in Wilmersdorf. His
house is abandoned, this time I can tell that he was really not there. I have a
conversation with the manager of a big department store. He reveals nothing of the
situation. To all my questions he only answers that hard times are coming, and I
could get no more from him. In several areas of Berlin the city looks strange,
policemen next to stockpiles of rifles and machine guns. Open trucks full of
Reichswehr soldiers race by at insane speeds, through the quiet streets. Motor
brigades fly over the Kurfurstendamm, armed troops can be seen everywhere
around government buildings near my hotel. Few brown uniforms. An odd
phenomenon, to my mind. Hitler has, after all, been taken into the government.
The few newspapers daring to raise the question speak of him as the chancellor of
the future, a very near future. I had expected more demonstrations of power from
the Hitler party in Berlin. I learned nothing from newspaper reports. A great deal
was clarified, however, when I talked to an attache of the American embassy. He
told me that Hitler had already put clamps on the press even though he was not yet
chancellor, that his Storm-Detachments (SA) were mobilized to take over the city
at the first signal, that the appearance of the Reichswehr, even though official,
meant nothing, since the government could not use it against Hitler's troops,
however much it might need to, because it was unreliable and contained many
National Socialist elements; that Hitler had added a new group of fighters to his
Storm-Detachments and troops that he himself named Murder-troops. Nobody
in the other political parties protested this brutal designation, which is a challenge
to civilization. The Social Democrats are broken because they realize that all their
years of parliamentary work have led to nothing, the Communists are becoming
afraid even though it was they who yelled the loudest. Yesterday their Karl
Liebknecht-house was taken by surprise and searched from cellar to attic. Officially
it was done by police and Reichswehr, but my informant remarked that Hitler's
Murder-troops had a large part in the destruction of the Karl Liebknecht-house.
Many Communist leaders had already been taken prisoner, the red flag was
forbidden, certainly only temporarily, but it would not be appearing before the
35
elections. The Social Democrats are lukewarm in their manifestos and daily
newspapers. Everyone feels that they axe unable to cope with the situation. The
German people want to be impressed, they only have respect for strong speakers.
Germans are just children, naive people. They will never be attracted by an
important principle.
First I received a brief summary of the political situation. My informant even
risked a prediction. "Hitler can no longer be stopped," he continued. "You will see,
next week he will be Reichskanzler. A von Papen can't fight it, a von Schleicher tried
it with the help of the young Hindenburg, but he was unsuccessful. Hitler can be
Reichsprasident if he wants. He will be satisfied with the chancellery only
temporarily. But Hindenburg is old and something could happen any day, then
Hitler will be a complete dictator without even the appearance of a constitutional
head. Anything is possible with this man. I have spoken to him a few times and
heard his speeches, and he does what he wants with his audience. He doesn't let
them think, just screams and yells so they can't resist him any more. When I listened
to him I always had the feeling I had to fight the power of his suggestion, to keep
from going along with him one hundred percent. When you ask yourself later what
he said you can't remember it. What do you think of National Socialism?"
I didn't want to give him an answer, especially not a complete answer. "We
should wait," I said, "we Americans ultimately have nothing to do with it. If the
German people want to think of Hitler as their savior, then that is their privilege,
it's not our business."
My confidant felt differently and tried to prove to me that Hitler was a danger
to Europe just as Mussolini was, and that the Italian danger would be strengthened
by the National Socialists extension of power in Germany and by a Hitler
dictatorship.
That same evening I wrote to Hitler's old address in Berlin, saying I had arrived
and requesting a meeting. That night the Reichstag building burned down. Goring
came to my hotel at noon, more brutal than before, arrogant and authoritarian. He
was accompanied by a newcomer, whom he introduced to me as Gobbels. Both
were full of the burning. They swore at the Communists who had set fire to the
building and tried to persuade me to the belief in their sacred right to wipe out the
Communists down to the last man. I followed the same tactics as before and
expressed no opinion. They would only answer my question of where and when
I could speak to Hitler after they were done raging. The Fuhrer would receive me
in the evening at eleven-thirty at the Fasanenstrasse. Goring would pick me up by
automobile.
Hitler was very upset. To be merely upset, for him, would mean hysteria for
someone else. He was always upset, in the true sense of the word. His greeting was
barely polite. He raged about the Communists who had set fire to the Reichstag,
he accused the Social Democrats of having had a hand in the fire, he called on the
German people as if he had thousands in front of him. I can't reproduce the whole
raving monologue here because I retained almost nothing of it. It had no coherence.
He went on for a full half hour before he sat down at the table and began a more
36
or less controlled discussion with me, constantly interrupted by accusations and
anger at the Communists.
I had no idea what I was there at Hitler's for. The situation was like this. Carter
had received a letter from Hitler, requesting him to send his former middleman
immediately to Germany for a meeting. Carter had showed me the letter, and after
my acceptance a few months ago, had asked me to go immediately to Berlin. Now
I sat in front of Hitler, but had no idea of what he would ask or say to me. I waited
calmly.
"I would like to inform you of the progress in our ranks. Since 1931 our party
has tripled in size. There are detachments in which the number of unemployed far
exceeds the number of employed. Various electoral campaigns have taken their toll
of our funds. Now we are on the brink of electoral victory, I have had to clean up
the party. Certain elements, even in leading positions, were unreliable. But that is
all over now. Now we are concerned with being successful in our last step. The
Communists have played their last card with the burning of the Reichstag. The
Social Democrats have been more difficult to defeat in our latest assault. Also, we
can't forget the German Nationalists, and they have money. We can't come into
Berlin with our troops because although we feel secure of the Reichswehr, we are
not certain of the general populace there, especially in the north and the Jewish
quarter. We have drawn a ring around Berlin and I have concentrated three quarters
of our party's troop strength in it. Just a few more days and the big day will be here,
election day. We have to win this last initiative. Either by elections or by force. In
case the outcome of the elections is not favorable, my plan is definite: to arrest
Hindenburg, his son, von Schleicher, von Papen and Bruning, and keep them
prisoner. We will also take the Social Democratic leaders prisoner. Everything has
been calculated up to the smallest detail. But half of our Storm-Detachments have
only billy clubs, and the troops have old-fashioned carbines. Near the German
border in Belgium, Holland and in Austria there are huge weapons supplies.
Smugglers give no credit. They demand scandalous prices. Of course they are aware
of what is happening here and are prepared for eventualities. You can't negotiate
with those fellows. They want hard cash, nothing else."
"I thought you would be here in Berlin sooner, then I could have calculated
everything accurately. Now, at the last moment, we must act quickly. Long
discussions won't help. What do you think your backers will do? Our money is
gone. Will you continue to support us or not? Don't forget that we are fighting
against Moscow, against the whole German heavy industry, against the Catholic
Church and against the International. These are no enemies to underestimate. Our
party funds have barely risen, although I did raise the membership fee to two marks
and dues to one mark. There are too many unemployed persons we maintain for
free and who have to be provided with uniforms and weapons. Things are better
in the flat lands, there our people have carbines and hunting rifles. In the cities it
is more difficult. What do you think? How much will your people give us?" I
couldn't answer. Especially since I was not prepared for this question and had not
discussed it with Carter before my departure.
37
"I have made no calculation, we had no time, and I don't trust my colleagues
any more, but for a few exceptions. Our party has grown so much in such a short
time that it has become more and more difficult for me to keep the leadership
completely in my hands. That is absolutely necessary, since reliable leaders are very
rare. The monarchists are beginning to come over to our side. Every day members
of the Stahlhelm join up, sometimes in masses, and we can do nothing but welcome
them, but we have to control the leaders who come along with them very stricdy.
I trust no one these days, I have finally made personal contact with Hindenburg.
The conversation was anything but pleasant, the old man was very reserved, but I
pretended not to notice it. I have time. He will know soon enough with whom he
is dealing. When the day arrives he will either play along or disappear. I don't make
compromises. You are no Jew are you? No, I remember, your name is German, yes,
German origin. It is better for you to travel in Germany with a German pass.
Gobbels can take care of it. You know him, surely. He, along with Goring, is one
of my best partners. Von Heydt is no longer with us, you know that. Neither is von
Pfeffer. The Strassers are laughable. A mutiny in the SA against me, a full meeting
of all the Gauleiter, and the incident was over. Strength, quick action, daring, are
everything. Instead of acting quickly and not waiting, the Strassers and their people
prepared and conspired in secret, and I was informed of all their activities when I
stepped in at the last moment. They are weak brothers, overly politicized, with
manners they took from the red rabble. What are they saying in America about the
burning of the Reichstag?" Obviously he forgot that I was already here when the
building burned. "But we know who the guilty ones are. We can prove everything.
The Communist set fire to it, but behind him are both Communists and Social
Democrats. They will regret it ...." Hitler had slowly worked himself up to a
frightening temper again and was now walking up and down in the room. Suddenly
he ran to the door, pulled it open wide and looked into the hall. He began to rage
and swear at someone who must be standing on the step. But I could see no one.
I don't know what he was trying to do with his yelling. First I thought he wanted
to prevent someone in the hall from hearing our discussion. But that wasn't the case,
because when he came into the room again he continued to rage against the invisible
person over something that was not clear. Perhaps it was the long wait for unimportant
details, or over his inability to trust his subordinates.
He sat down again and said to me: "You have not mentioned the sum of money
yet." There are moments when Hitler gave the impression of a sick man. It was
always impossible to carry on a normal conversation with him. Sometimes his
jumps from A to Z were such a hindrance and so stupid that his mental balance was
doubtful. I think he has a hypernervous nature. In the last few years his mind has
been occupied with a single idea. He has lived under constant tension. Many would
have broken down, but Hitler seems to have an incredibly strong nature. I don't
believe, though, that he has great understanding. When I try to summarize all the
conversations I have had with him, I come to the conclusion that he is not intelligent,
but unusually self-centered and tenacious. That is, I believe, his strength. We
can all recognize a person of this type in our own circles, who, often dumb and
38
barely developed, sacrifices everything for an idea or a possession, and either wins
or perishes because of it. This is how I see Hitler. Whether he will be a blessing or
a curse for a people like the Germans, only the future will tell, but I do think the
German people are the only ones in the world to tolerate a man with such massive
influence. There are so many weak points in his person and his behavior that the
man himself as well as his party would have long been mocked and ridiculed in other
countries. Knowing the man after various conversations I had with him, I also
understand now why he can no longer be tolerated after his final victory, neither
by Germans nor by foreign journalists. He is actually a danger to himself and to his
party because he cannot control himself, he reveals everything, babbling about his
plans without the slightest hesitation. This had struck me even at our first
conversation. Of course, I had had the strongest references, my identity was secure,
he could tell from every detail that he was dealing with someone who represented
the strongest financial group in the world, but for me it was no proof of his
statesmanship and political insight to be informed so straight-forwardly of his most
secret intentions.
In 1933 this was certainly less dangerous than 1929 or 1931. But in both those
years he was equally frank with me as in 1933. Also he couldn't get away from the
Jewish problem. That was the central issue for him, the problem of the greatest
importance for the German people. His ideas on this subject would be considered
laughable by an American high school student. He absolutely denies all historical
fact, and I believe he knows nothing about the modern concept of "race."
After his question, or actually his reproach, "You have mentioned no sum of
money," he began to speak of the Jewish problem, and by God, he began to
compare the German problem with the Negro problem in America. That was
enough for me to form an impression of Hitler's understanding and insight. Both
problems are in no way comparable. I will spare you these nonsensical comparisons
of his.
It was already three o'clock in the morning and I still did not actually know
what he wanted of me. So I made use of a small pause in his incoherent speech to
ask him: "You spoke of a sum of money?"
"Yes, that is the problem. We don't have much more time. This is the situation.
Are your backers prepared to continue supporting us? What amount can you get
for me? I need at least one hundred million marks to take care of everything, and
not to miss my chance of final victory. What do you think?"
I tried to make it clear that there could be no talk of such a sum, first of all
because he had already received twenty-five million and second because the transfer
of such a large amount in a few days from New York to Europe would certainly
disturb the stockmarket. Hitler didn't understand this, and he said so directly. He
was not familiar with such complicated details in banking. "If you have the money
in America, then certainly it can be turned over to Germany. Telegraphically or
something, it seems very simple to me." It was hopeless and a complete waste of
breath to enlighten him in international finance. I concluded by promising to
report our conversation to my backers and then to wait and see what their decision was.
39
"You will telegraph, won't you? Do it here, then your telegram will be handled
more quickly. Code? We can also help you, I will just telephone for you." Now I
had to explain that I corresponded with Carter in a secret code and he demanded
to know whether nobody could read this cablegram, not even the directors of the
telegraph company? He was amazed and thought it was bad that private persons
could telegraph each other without the government of the different countries being
able to decipher their reports. He admitted that he had never heard of such a thing.
It was about four-thirty when I got back to my hotel and I immediately began to
construct my code telegram to Carter.
It was very strange to read the German press in those days. Of course, one was
told that Social Democratic and Communist weeklies were still available, but the
hotel boy that I sent out for them kept coming back with the well-known Berlin
papers. The burning of the Reichstag building was believed to be without exception
a Communist misdeed. I was never able to learn other opinions, even if they were
available. I read other explanations in America and elsewhere, but if it is true that
the Hitler party had a hand in the burning, then Hitler is the best actor I have met
in five continents.
Goring and Gobbels are almost as good. His anger, his frenzy about the
burning were either completely genuine or incredibly well put on, and even now,
just thinking of that conversation, I can still feel the influence of those wild feelings.
I noticed another strange thing in those days about Berlin. At street corners and
squares I often saw ten or twenty brown uniforms with swastikas standing in acircle.
For a quarter of an hour they cried: "Clear out the manure! Vote National Socialist!"
Then they walked on, formed another circle and cried: "The latest egg the Jews have
laid, that is the German State's Party!" At noon time I saw out of my hotel window
forty brown uniforms standing in a circle, a half hour long they yelled in constant
rhythm:
Proletarian, wake up!
If to fight for the freedom of German work
Is what you want,
If bread for wife and child
Is what you want,
Then
Defend yourself, defend yourself
Worker with mind and fist
Vote List Nine.
I always had to think of Hitler when I saw these people. In Berlin they were
called the propaganda "speaking-choruses."
Everything Hitler. Short sentences. Just speak, scream, yell, without protest
from anyone. No one could get a word in edgewise. Certainly a new propaganda
method. They have discovered new methods here at home in the area of voting
propaganda, but I have never seen anything as suggestive as this, anything that has
such an effect on the masses, and the first party to use it naturally gets control of
the streets, because even if another party holds a speaking chorus in the same area
40
it results in a scuffle—it can't be otherwise.
The rhythm and the constant repetition of the same words puts the speakers
in a kind of ecstasy, and in this ecstasy they are capable of anything. I have seen these
brown people, how they look up over the heads of the crowds, as if they see a better
world and they revel in this image. The ecstasy could be seen right on their faces.
Can a person still think logically in ecstasy? Psychologists are the ones to ask.
Yesterday I read somewhere in a dissertation that fascism and National Socialism
were a sickness, perhaps a sickness of the soul. But I am just rambling.
Carter wired me that he could give seven million dollars at most, that means
five million would be turned over from New York to Europe to the given banks and
two million would be paid personally to me in Germany by the Rhenania Joint
Stock Co. Rhenania is the German branch of Royal Dutch in Dusseldorf. I sent this
answer to Hitler and waited. The next day Gobbels was announced very early in
the morning. He brought me to the Fasanenstrasse.
Hitler received me in the same room, Goring was with him. The conversation
was very brief. Almost abrupt. I had the impression that the three men were not
satisfied with the stipulations, and that they had to force themselves not to lash out
against me. Everything went well, however. Hitler asked me to sign over the five
million dollars to the Banca ltaliana in Rome again, and Goring would accompany
me. The two million had to be transferred in fifteen checks of equal value, in
German money, all in Gobbels' name. The meeting was then at an end. I left.
I carried out my assignment strictly down to the last detail. Hitler is dictator
of the largest European country. The world has now observed him at work for
several months. My opinion of him means nothing now. His actions will prove if
he is bad, which I believe he is. For the sake of the German people I hope in my heart
that I am wrong.
The world continues to suffer under a system that has to bow to a Hitler to keep
itself on its feet.
Poor world, poor humanity!
For translation faithful to the original
Zurich, February 11, 1947
Rene Sonderegger
41
EPILOGUE
he preceding report appeared in the period after the dating of the
Forward, after October, 1933 (as a Dutch translation of the English
original) in the form of a ninety-nine page book published by an old,
respected, still existent firm in Amsterdam. This book did not reach a wide public,
however, since it disappeared after a short time forever from the book market, if it
had ever been on sale publicly at all. Only isolated copies seem to have reached the
hands of a third person. The existence of the book is not disputed. What is disputed
is its authenticity. The firm explains that this book represents a huge falsification,
or forgery:
The translator, Schoup, came to us with an original letter from
Warburg, therefore we believed the book as well as its author to
be genuine. After the book came out we learned from various
sources that a Mr. Sidney Warburg, from the house Warburg in
New York, did not exist and that the book was a massive
deception. We immediately called back all copies from book
dealers and destroyed the whole edition. We don't know if
Schoup still lives: unfortunately he was never pursued.
The preceding German text is the exact word for word translation of the Dutch
book edition.
Today, at the end of 1946, thirteen years after 1933, after the second World
War and the downfall of the Third Reich, after the complete subjugation of the
German people and after the Nurnberg trials against the highest ranking surviving
Nazi leaders, and faced now by the threat of World War III, we feel obligated to
publicize this text, unedited and uncut, in order to make way for an exact analysis
of its contents and origin.
It is possible that this report is forged and that its contents are substantially
untrue. It is possible that the report is forged, but that its contents are substantially
true. It is possible that the report presents a mixture of fiction and truth. But it is
equally possible that he report is genuine, or that it is substantially genuine, yet
contains several deceptions that testify against its authenticity. Anything is possible.
It is important to establish the truth about contents and origin.
We pose the question of the truthfulness of the report. What evidence is there
that it is a forgery, i.e. that its contents are substantially false? If it is false, in whose
interest and by whom was this forgery created? Can it be proven that the contents
of the report are substantially authentic therefore true? Can it be ascertained what
is true and what is false in it?
In any case it can be established that the report can be authentic and true, that
its authenticity and accuracy cannot immediately be disputed. This proof will be
demonstrated by the following facts available to us. The report names many
concrete, commonly known occurrences and facts that are relatively easy to verify.
It is supposed that Sidney Warburg is the New York banker and writer James
T
42
Paul Warburg, son of Paul Warburg, who was Secretary of State under Wilson.
Sidney can be a pseudonym. James P. Warburg was born in Hamburg in 1896. In
1902 he came to America with his father. As a young man he is said to have spent
several years in his uncle's business in Hamburg, mentioned in the report on p. 6.
At the time of his supposed trips to Germany he was 33 to 37 years old. James P.
Warburg was an American delegate to the London World Economic Conference
in 1933, mentioned on p. 4. James P, Warburg wrote a great deal about economics
and politics. For example a book of his appeared in 1940, after many precedents,
called Peace In Our Time?, one year later another, Our War and Our Peace, in 1944
another, Foreign Policy Begins at Home. In 1942 a book of his verse appeared entitled
Man's Enemy and Man. Ferdinand Lundberg calls him "politically aggressive" in
his well-known book America's Sixty Families. James P. should dispute the
authorship of the report ascribed to him. The American Warburgs came from the
old Hamburg banking family of Warburg. Felix Moritz Warburg, the promoter of
Zionism, was born in 1871 in Hamburg, went to the U.S.A. in 1894 and married
there in 1895 a daughter of Jacob Schiff from the banking house Kuhn, Loeb and
Co. Felix had four sons who can eventually come into question as authors of the
report, if the evidence of Warburg authorship is actually accurate. The case is
improbable, however, because nothing seems to predestine them for this role. Paul
Moritz Warburg, father of James Paul, his only son, was born in 1868 in Hamburg,
married a daughter of Salomon Loeb from the banking house Kuhn, Loeb & Co.
in 1895 and settled, as mentioned above, in the U.S.A. in 1902. A relatively short
time later he sat in Wilson's government. The oldest brother of Paul and Felix, Max
M. Warburg, was born in Hamburg in 1867 and remained head of the Hamburg
firm. With the marriage of the Warburgs into the New York bank Kuhn & Loeb,
the Warburgs became the most important Jewish financial capitalist power.
The Warburg report contains several inaccuracies and errors that, at first
glance, strengthen doubt in its authenticity. We would like to point out these
places. On p. 2 the author wants to "describe briefly the state of American finance
in 1929." But then he goes on to refer to incidents in the following years. The
dissolution of the Darmstadt and National Bank, the Nordwolle crash, the crisis
of the Austrian Kredit-Anstalt all took place in 1931, the payment of Young-
Obligations in 1930. The amount of outstanding credits abroad the U.S.A. has, is
given as 85 milliard dollars. This figure is much too high. American outstanding
credits abroad were actually only 18 milliard dollars.
The title runs Three Conversations With Hitler. On p. 5 the author speaks of
"four conversations." There were exactly three trips and five separate conversations
with Hitler.
On p. 24 Carter's answering telegram reads: "Explain to man that such a
transfer (of 200 to 500 million marks) to Europe will shatter financial market.
Absolutely unknown on international territory." On p. 38 the author writes that
"the transfer of such a large amount in a few days (one hundred million marks) from
New York to Europe would certainly disturb the stockmarket." Without knowing
too much about these financial transactions, this fear seems to us improbable.
43
On p. 30 the author mentions that the Nazis had received 107 delegates in the
Reichstag on September 14,1932. That is wrong. TheNazis received 107 delegates
in the Reichstag on September 14,1930, in 1932 they already had many more. On
the same page the author writes: "My grandfather came to America ninety years
ago, my father was born there." The father of the supposed author, Paul Warburg,
was born in Hamburg and settled with his family in the U.S.A. in 1902.
The Nazi rally described on p. 32 applies to the Breslau election rally on March
1, 1933. Therefore it took place after the burning of the Reichstag and after
Warburg's conversations with Hitler. The author must have read the report on his
return trip from Berlin, not on the way there.
On p. 34 the author is reading in a German newspaper in February 1933 that
"von Pfeffer had been dismissed by Hitler and that (Gregor) Strasser had been left
cold because his brother (Otto) had incited mutiny among the Storm-Detachments."
On p. 37 he has Hitler saying at the same time—"von Pfeffer is no longer
with us. The Strassers are laughable. A mutiny in the SA against me, a full meeting
of all the Gauleiter, and the incident was over." The reader gets the impression that
the cases of von Pfeffer and Otto Strasser had occurred very recendy. Instead they
happened in 1930. It is possible, however, that they took effect afterwards, and were
mentioned again in conjunction with the Gregor Strasser crisis of early December
1932.
Perhaps the most obvious error is found on p. 34, where the author writes that
Hitler has already been taken into the government, but is not yet Reichskanzler.
The text on p. 35 also implies that in February 1933 according to the author von
Papen, not yet Hitler, is chancellor. One can conclude from a sentence on p. 24
("We should not forget that in 1931 Hitler was not yet Reichskanzler, just leader
of a strong political party") that the author knows as he is writing the report in the
summer of 1933 that Hitler is chancellor. The same can be taken from the phrase
on p. 38 "after his final victory." Every school child in Europe knew in 1933 that
Hitler became Reichskanzler immediately when he entered the government at the
end of January, 1933 and he remained so until his death. Perhaps what helped
create the error was the author's lively and accurate memory that Hitler was at first
only nominally Reichskanzler, that von Papen & Co. did not want to give up actual
power, and that the struggle for power within the government witnessed from up
close by the author continued on until Hitler first seized total power in the summer
of 1933. In general, the tension of the German struggle for power in February of
1933 is absolutely correctly described by the author.
It is possible that the report contains additional errors and inaccuracies like
these. It is, however, doubtful that they speak for the forgery of the report as a whole.
If we accept that the report is falsified, then it originates from a very clever forger who
has deep insight into actual facts. Such a clever forger would not allow clumsy
mistakes like that of the Reichskanzler or the misdating of the number of delegates,
all of which could make the reader mistrustful from the beginning. Perhaps some
of these mistakes were made on purpose so the authorship could be denied if
necessary, like, for example, the assumption that the author's family had been in
44
the U.S.A. for 90 years. In fact these errors and superficialities speak more
convincingly for authenticity than for forgery. An American banker, belonging to
the circle of men of the world, who is at the same time not lost in inner European
affairs, does not twist and turn every word seventeen times over before setting it
down, as a German professor would. He writes off the top of his head, freely from
memory, unhindered by larger or smaller exactitudes in side issues. As long as the
main points emerge sharply and clearly, and it cannot be disputed that they do.
Finally the report contains not only these and perhaps other errors, but also a
large number, a majority, of accurate and provable statements. In addition, it
contains many profound and excellent observations that prove the author to be not
an ordinary shoemaker but a well-read, experienced and knowledgeable mind with
insight, explicable only by either high theoretical training or collected personal
experiences from top levels. The report contains predictions that sounded improbable
in 1933, but were confirmed by events since that time. Finally there is a
marvelous admission from one who participated. Naturally Gobbels couldn't keep
his big mouth shut. So he writes in his dairy "Von Kaiserhof zur Reichskanzlei" on
February 20,1933: "We are raising ahuge sum for the election (Reichstag election
of March 5, 1933) that disposes of all our financial problems at one blow." Even
if we don't know, of course, if Gobbels' jubilant exclamation applies to the
supposed American money to be sent by Warburg, the timely coincidence of both
events is still remarkable.
The Warburg report as a whole gives an extremely serious impression, genuine,
lively and unbelievable. Descriptions of Hitler and the content of his conversations
seem especially authentic and true, they agree with everything we know otherwise
about the subject. After the errors have been pointed out, several especially relevant
facts will be mentioned, along with comment.
From the beginning, the reference in the Forward to the conflict within the
capitalist, the mixture of honesty, decency and corruption, proves great awareness,
Marx, in Das Kapital, spoke clearly of this economic role, the double role of the
capitalist.
The great businessman, who won't let himself be deceived by any phrase,
appears in short, brief sentences like:
Money is power. The banker knows how to concentrate and
manage it. The international banker carries on international
politics.. .Whoever understands what was concealed behind the
word "national" in the last few years and what is concealed there
still also knows why the international banker cannot keep
himself out of international politics. (p. 3)
The American banking world had never been enthusiastic
about Wilson. Bankers and financiers viewed his idealism as
good enough for the study, but unsuited to the practical,
international world of business. (p. 4—5)
Look for the explanation in works on political economy, in
examples of practical, international economy, in fat books on
the subject containing much idiocy, all betray a complete lack of
45
insight into reality. Political economists are, first of all, primarily
academics. (p. 6-7)
Is he not right?
Carter and Rockefeller dominated the proceedings.
Carter is Morgan's representatives. Guaranty Trust belongs to the Morgan
group. Morgan and Rockefeller, the uncrowned kings of the world, give the orders
and hold the Hitlers like puppets on a string with their millions. Carter (father and
son) are official figures in the leadership of the Morgan bank in Paris, which played
a very large role in the financing of World War I and in the regulation of debts and
reparations in the period between the wars. Is the man mentioned here perhaps
identical with John Ridgley Carter, born in 1865, who married an Alice Morgan
in 1887, was attached until 1911 to the American diplomatic service and since 1912
belongs to the leadership of the Morgan Bank in Paris? It fits rather well.
On p. 9 Hitler says: :'We can't count on sympathy from the large capitalists
yet, but they will have to support us when the movement has become powerful."
According to other widely held opinions that statements completely accurate.
Hitler received the first large sums of money from foreign capitalists like Ford,
Deterding, etc. Wealthy German capitalists treated him with reserve for a long
time. Only after he had already come to power did the majority follow him. But
it was decisively foreign capital that made Hitler.
The views on foreign policy that Hitler held in 1931, according to the 1933
report, were substantiated by later events, as were, incidentally, his other predictions.
His prediction of the Russian pact is the most amazing of all. On p. 20 Hitler
says in 1931:
The German people must be totally self-sufficient, and if it
doesn't work with France alone, then I will bring in Russia. The
Soviets can't miss our industrial products yet. We will give
credit, and if I am not able to deflate France myself, then the
Soviets will help me.
This seemed completely crazy to Warburg at the time. That is why he added
immediately:
I must make a small remark here. When I returned to my hotel I wrote
this conversation down word for word. My notes are in front of me, and I am not
responsible for their incoherence or incomprehensibility. If you think his views on
foreign policy are illogical, it is his fault, not mine.
Falsification!?!
Hitler's evaluation of the German "Communists" on p. 22 is to the point:
The best people here in Berlin are Communists, their leaders
complain to Moscow of their bad straits and demand help. But
they don't realize that Moscow can't help. They have to help
themselves, but are too cowardly for that.
The position of Jewish capitalists in relation to Hitler and his antisemitism, as
it is described in the report, has also been proven by other sources.
I had a talk with a bank director in Hamburg whom I had known
well in the past. (Very likely Warburg's uncle) He was quite
46
taken in by Hitler...It was hard for me to take his opinion
seriously, because he was a Jew. I needed an explanation, so I
asked him how it was possible for him, as a Jew, to be sympathetic
to Hitler's party. He laughed. "Hitler is a strong man, and
that is what Germany needs." (p. 18)
Again I posed my question of how my informant, as a Jew, could
be a member of the Hitler party. He passed over the question
with a sweep of his hand. "By Jews Hitler means Galician Jews,
who polluted Germany after the war."
Warburg's comic dismay when Hitler rightfully compared the Jewish question
in Germany with the Negro question in America is equally believable, (p. 38)
An important sphere of fact, that can strengthen adequately the real possibility
of the Warburg report's authenticity by analogy concerns numerous, uncontested
statements about moral, political and financial support and promotion of Hitler
and German National Socialism by foreign and especially American capitalists,
scattered about in the literature of these times.
First of all, the case of Henry Ford can be mentioned. The American automobile
king was known in the twenties as the richest man in the world. At the
beginning of the twenties he carried on an open, well-known alliance with the
German anti-semites as their patron-saint, supported by the book The International
Jew, illustrated by him and written by White Russian anti-semites. This book
appeared in German published by the anti-semitic Hammer-Verlag. In a publisher's
announcement he writes:
This book has long since taken its place in the armoury of every
mentally alert German person. No other publication of similar
scope that treats the Jewish question with intellectual reasoning
can claim a wider circulation.
On January 19, 1923, the Hasler Nachrichten reports:
Henry Ford is perhaps the biggest anti-semite of our time.
On September 13, 1923 the Judische Pressenzentrale Zurich (Central Jewish
Press, Zurich) writes:
The anti-semitic International is organizing itself. As the JOB
representative discovered, this (anti-semitic) agitation (in Czechoslovakia)
started about two years ago: immediately after the
negotiations Henry Ford conducted with German politicians in
Czechoslovakia. The kind of agitation going on in Czechoslovakia
strengthens the suspicion that there is acentral location for
international anti-semitic propaganda, seeking to systematically,
according to definite plan, incite an anti-semitic world
movement.
On November 9, 1923, shortly after Hitler's beer hall putsch, the Vienna
Arbeiter-Zeitung (Workers Newspaper) wrote that "it was well known that Henry
Ford was spending large sums to stir up the anti-semitic movement in Europe."
The Judische Pressenzentrale Zurich reported on March 24,1924: —"Attacks
on Henry Ford in the American Congress."
47
In one of the last sessions of Congress, Congressman La Guardia
delivered a sharp speech attacking Henry Ford, accusing him of
spreading anti-semitism in Europe. La Guardia explained:
"Henry Ford's wealth, along with his ignorance, have made it
possible for malicious people to conduct a vile campaign against
the Jews. This is not only true in America, but in the whole
world. This inhuman, unchristian, and evil campaign has
reached the other shores of the ocean and we see its consequences
in the pogroms of innocent, helpless Jews in various parts of
Europe. Refute this if you can!"
On April 25, 1924 Crispin wrote in the Berlin Vorwarts (Forward) under the
tide: "Ludendorf and the Jews" —
To complete Ludendorf s character profile, the source of his
wisdom about the Jews will be revealed. The source of his
wisdom is, according to his own testimony, the book circulated
under Ford's name: The International Jew.
In 1927 an attack appeared against the anti-semites by C.A. Loosli: "The Evil
Jews!" The author polemicizes mainly against the two literary leaders of antisemitism,
Ford and Rosenberg. He uses the expressions "Ford and his swastikaconfederates"
(p. 57), "the German anti-semites in alliance with Ford" (p. 60), "Mr.
Ford and Mr. Rosenberg" (p. 33).
The following appeared in Upton Sinclair's book about Ford, the automobile
king, that came out in German in 1938 published by Malik-Verlag, London:
The former editor of the Dearborn Independent (belonging to
Ford) who had written the anti-semitic article, was now Ford's
private secretary and press chief, controlling all his public
relations. William J. Cameron had not changed his views one
iota; on the contrary, he was in contact with numerous antisemitic
agents in the whole world and connected them with
Henry Ford.. .Ford's millions surrounded him like a prisoner
with Nazi agents and fascist slanderers. They had already begun
to work on him when the Hitler movement was still young, and
had received $40,000 from him for a German edition of the antisemitic
brochure, the names of Hitler and Ford appearing
together in the prospectus. Later on a grandson of the ex-Kaiser
joined up with Ford, and by his help $300,000 flowed into the
Nazi party. Henry Ford had huge factories in Germany, and it
was no Utopian idealism that prompted him to fight the strikes
in that country. —Then Fritz Kuhn entered the picture, Hitler's
primary agent in America, the uniformed head of the German-
American Bund, a semi-military organization. He moved his
headquarters to Detroit and received a post in the laboratories
of the Ford works. A new anti-semitic campaign was begun and
the Ford factory swarmed with Nazis. (p. 248—249)
The German Hitler movement grew and took strength from 1920 on under
the direct, open and close participation of Ford. Only when Ford's public support
was no longer necessary did he separate himself from anti-semitism. He continued
48
to aid Hitler, however. The latter conferred an order on him after his takeover. The
Volksrecht (People's Rights) reported on September 19, 1945:
The Ford works are accused of furnishing supplies regularly to
the Nazis. The correspondent from TASS Agency in New York
reports: "Documents discovered in Germany, as well as thorough
investigation have proven that the American Ford Co.
produced war materials for the Nazis and assisted German
armaments before and during the war up to 1944. Before Pearl
Harbor, Henry Ford himself approved the contracts between his
factories and the Hitler government.. .In 1939 a gift of 50,000
marks is said to have been turned over to Hitler from representatives
of the Ford works."
The American origin of European fascism is also evident in a report from the
Judische Pressezentrale Zurich of December 22, 1922:
One of the leaders of the Ku Klux Klan explained in a conversation
with journalists that the KKK had made all the preparations
to expand into a world organization...in a very short time a
branch organization would be founded in Canada, while trusted
agents were being sent at the same time to Europe to create a
KKK organization in various European countries. It would not
last long and the movement would cover the whole world.
The European KKK did come to life in the form of fascism and National
Socialism.
Occurrences in Bavaria in 1923 provide very interesting and significant
information about foreign financial sources of the Nazis. Foreign impetus and
interests behind the Nazis are easier to pinpoint in the beginnings of the movement
because they were not as pronounced then, and methods of disguise were not yet
well-developed. Events in Bavaria prove that foreign powers and interests were
involved in the fascist movement from the very beginning, wishing to guide it
according to their desires.
In March, 1923 a monarchist takeover in Bavaria was attempted by Fuchs,
Machhaus & Co. The Vienna Arbeiter-Zeitungwrote on June 24, 1923:
The trial (against Machhaus & Co.) has, to begin with, established
with completely unshakable evidence the French
government's financing of the fascist movement. It was incontestably
proven and confirmed by all witnesses that more than
one hundred million marks were given by the French agent
Richert to the fascist organizations in the second half of last
year... France has invested its money well in the German Nazis,
Millerand and Hitler are playing conveniently into each other's
hands!
On July 10, 1923 the same newspaper writes on the affair again:
In clarifying the verdict it was explained that.. .the money at his
(Richert's) disposal was intended to finance a takeover in Bavaria
and the overthrow of the German Reich.. .Richert was working
under assignment to the French government, and if his power
49
seizure had succeeded he would have had to appear in court as
the primary defendant along with the French government.. .The
attempt to overthrow the German government by Richert-
Fuchs-Machhaus was a highly official destructive undertaking
by the French government against the political stability of the
German nation and thereby against the national unity of the
German people. The French government planned to carry out
this overthrow in close coordination with the other French
actions in the Ruhr. French armies on the Rhine and on the
Ruhr had orders to begin marching from Frankfurt to Hof at the
moment of the Bavarian putsch, thereby dividing the German
north from the German south. The Bavarian overthrow would
then be the pretext for the occupation of the Main river through
France, and the French government would hope for further
advantages from the success of separatist campaign efforts in
Bavaria.
This is the plan of action of World War II in a nutshell. Only the real model
for Fuchs-Machhaus is Hitler, for France is America and for Richert is Warburg.
Hitler also had French money in 1923. His leader of the Storm-Troopers,
Ludecke, had armed and invested one Storm-Detachment of the Munich Hitler-
Guard with uniforms at French costs, but soon afterwards, to Hitler's sorrow, was
discovered by the police with huge sums in franks and exposed. (See Vienna
Arbeiter-Zeitung) of March 19, 1923). But Hitler not only had franks, he had
surprising amounts of dollars in the inflationary times of 1923. Was his unusual
strength perhaps the result of the possession of so many dollars? The Vienna
Arbeiter-Zeitung asked on April 15, 1923: "Shouldn't names like Ford, the
American patron of anti-semitism, be found under the gift-happy German Nazis
living abroad?"
On February 17, 1923, the Vienna Arbeiter-Zeitung reported the following
story under the title: "The Hitler with the Dollars" —
What a shame for the Nazis. First it was proven that they received
money from the French. Then one of their leaders is unmasked
as a French spy and arrested. Now the Munchner Post is in a
position to prove that even Hitler, well-known Nazi general, is
in possession of a surprisingly large number of dollars. Our
Munich party newspaper writes: Shordy before the National
Socialist Parteitag Hitler appeared at a Munich business office in
the company of his 'bodyguard' to buy furniture for the editorial
offices of the Volkischer Beobachter (People's Observer) a new
Nazi sheet. After the Parteitag the business owner went personally
to the offices of the Volkischer Beobachter to collect the
amount. Hitler was in the process of opening the mail. He
removed huge sums in dollars from several envelopes sent to
him. He payed the amount of five million from a briefcase
stuffed with dollar bills. The somewhat amazed face of the
businessman obviously must have prompted him to give an
50
explanation for this, after all, quite unusual situation. He said off
the top of his head: "The old fuddy-duddies always want to
know where we get our money. You see, Germans living abroad
support our movement. If we had to rely just on contributions
from industrial magnates, then we would have needed long ago
to get help from Germans living abroad." Mr. Hitler, then, has
as you can see large amounts of money in foreign values at his
disposal. The twisted explanation he felt he owed to the businessman,
that the money came from Germans living abroad, is
just a way out of an embarrassing situation. The money comes
from abroad, and the hardly contested fact that the National
Socialist party is fed through foreign channels is thereby firmly
established.
In the Munich Hitler trials of 1924 it was determined that Hitler received
$20,000 from Nurnberg industrialists for his putsch. Nothing annoyed Hitler as
much as the accusation that he was being financed by foreign capitalists. For that
reason, during the course of his rise to power in 1933 he would bring libel actions
against those who aired such opinions. Since the accused could naturally not
produce receipts and written corroborations, and the courts protected Hitler, and
since in addition former participants and witnesses who had turned against the
Nazis were cruelly persecuted by their former friends, Hitler emerged regularly as
the victor from these trials, if he didn't prefer just to let them run themselves out.
Such a trial took place in 1923 in Munich. The Vienna Arbeiter-Zeitung wrote
on June 23, 1923:
Lantag delegate Auer declared as witness he had received the
information that sums of money, one of them thirty million
marks, had been transferred three times from the Saar territory
to the Deutsche Bank, and had reached the possession of people
who had otherwise not had any money to dispose of. There had
been evidence proving that the money originated from Ford, the
automobile factory owner, who played a large role in the
National Socialist Workers Party, and was one of the authorities
in the French iron syndicate. —Shopkeeper Christian Weber,
member of the National Socialist party leadership, declared that
the party certainly did get money from abroad, largely from
party members in Czechoslovakia and from friends in America.
A similar trial took place against the writer Abel in Munich in the summer of
1932, therefore shordy before Hitler's power takeover. The Imprekoor ot June 14,
1932 reported the following:
Hitler and some of his people who entered the battle as witnesses,
tried their best to be vague and reveal nothing. The courts even
came to Hitler's assistance in these efforts. Yet the trial did, in
certain ways, explain things.. .The focal point of the trial was the
interrogation of Hitler, which took place under sensational
circumstances. The leader of the Brown House was obviously
concerned with exploding the proceedings, to avoid embarrass51
ing questions. He actually succeeded in slipping away at the right
moment thanks to a true attack of delirium (even with foam on
the mouth!)... He escaped scot-free when the question of foreign
financial sources came up. He did, though, condescend to
the ambiguous admission that the NSDAT had always been
supported by its members abroad; therefore Germans abroad
and naturally also Nazi patrons in Germany could be the
channels through which money from Deterding, Schneider-
Creuzot and Skoda could have flowed. But when the lawyers
asked Hitler completely straight forward questions, he began to
scream like one possessed, to insult the lawyers and refuse
testimony. Even the Munich court, normally so favorable to
him, could not get away from fining him 1,000 marks for
"abusive behavior" and refusal of testimony, which could hurt
Hitler. —Hitler's denials and raging are highly transparent. He
has already been exposed on the one issue to which he responded,
and he can even be suspected of perjury. He explained
that he had never seen or spoken to the Italian Migliarati, who,
according to Abel's assertion, is suspected of turning over sums
of money to him. Meanwhile it was already proven in the
Bayrischen Courier that Migliarati publicized an interview with
Hitler at a critical point. It is now completely understandable
why Hitler let it come to a denial of testimony and then left
Munich in a hurry. Answers to numerous, very precise questions
from the defense would have shed a great deal of light on Hitler's
financial sources, on actions a leader can actually get away with,
but which the rank and file will not tolerate.
The Neue Zurcher Zeitung also felt the same way, that Hitler verified Abel's
accusations rather than disproved them by his unusual behavior in court.
The strong financial connections between Sir Henry Deterding, head of the
Royal Dutch Petroleum Co., and Hitler are well known and still fresh in the
memory so that it is enough just to mention the name here. Konrad Heiden writes
on this matter in his Hitler biography: "Direct and indirect financial connections
to Henry Deterding.. .the great inspiration and donor to anti-bolshevist campaigns
were not denied."
Hitler received many millions of dollars from Deterding, Deterding's last
residence was an estate in Germany, and a representative of the Hitler government
spoke at his graveside.
There are numerous allusions and evidence in contemporary literature
concerning Hitler's foreign financial sources, from which those previously quoted
are but a few examples, and the following additional ones will be mentioned:
The Neue Zurcher Zeitung wrote in their daily edition of October 18, 1929,
as the Nazi movement was beginning to grow to huge proportions, under the title
"Non olet!" (Money doesn't smell!):
The unusual amount of propaganda released today by the
National Socialists all over Germany, their costumes and sol52
dier-games, all items costing large sums of money, demand the
question: where is the money coming from? It can't possibly
originate just from the organization itself, considering how the
whole structure is put together. Where is it coming from? The
Badische Beobachter, leading organ of central Baden.. .has very
interesting information about financial sources flowinginto the
Hitler movement. They form a conclusion as to where the
money for the extensive, costly apparatus of National Socialist
agitation originates.. .Noteworthy for these inheritors of patriotism,
who make daily accusations of treason against their
opponents, and who estimate themselves especially highly for
their absolute German-ness, is that the money behind their
movement is mainly procured from abroad, A Dr. Gausser dealt
with Swiss donors, the Munich art dealer Hanffstangel with the
Americans, an engineer Jung and Dr. Krebs with Chechoslovakians,
the university Professor Freiherr von Bissing collected
money for the Hitler movement in Holland. The correspondence
was treated with great care and took place only under
disguised addresses. The name Hitler was never mentioned. He
was always called "Wolfi" in the letters... money came also from
Ford and large sums were given by big industrialists in Czechoslovakia
— Along with the foreign source of the money goes,
according to this report, its capitalistic origin, a characteristic
that still plays the most substantial role in the financing of the
National Socialist Party today, in addition to everything else
known or suspected of the movement.
Finally the fact must be mentioned that on February 11, 1932 the Socialist
delegate Paul Faure proved in the French Chambers that the Czech Skoda Works
together with the European Industry and Finance Union, which works in
connection with Schneider-Creuzot, payed out huge sums to Hitler's German
National Socialist Party.
At the end of 1931 Hitler gave an explanation of foreign policy to the English-
American press that fits perfectly with his opinions in the Warburg report. The
Imprekoor of December 8, 1931 remarked under the title: "Hitler on His Knees
Before World Finance."
The Nazis believe in the old illusion that they can rely upon
England and America for support when faced with French
imperialism. That is why in this speech Hitler assumed the
English-American thesis of the "priority" of private over political
debts. That is why he spiced up his explanations of the tribute
question with several attacks on Paris, by speculating on growing
anti-French sentiment especially in England.. .That is why he
made an especially strong admission concerning the payment of
English-American loans and credits.
The valuable testimony of Dodd will now be cited here. Dodd was the
American ambassador in Berlin from 1933 - 1938. In this position he met many
53
highly-placed American and German personalities. His notes were published by his
children in 1943 as a book which became famous. Hitler's support by American
capital appears with unusual clarity in Dodd's diary. American bankers who were
anxious about their investments in Germany supported Nazism without exception.
After Hitler had come to power, American and English armament industries
delivered war materials to him. Also rich Jews tolerated and assisted Hitler, among
them the Warburgs. A few especially noteworthy remarks in Dodd's sketches are
enough to illustrate the point.
Dodd writes of a rich New Yorker:
He was very strongly against the Russian Revolution and
enthusiastic about Hitler's regime in Germany. He hates Jews
and hopes to see them treated accordingly. Naturally he advised
me to let Hitler go his own way. (p. 24)
Professor John Coar wished to speak with complete frankness.
He told me that he had been a personal friend of Adolf
Hitler's and in 1923 had advised him against his putsch in
Bavaria. (So Hitler had American advisors among his circle
already in 1923!) Hitler continued to give him interviews all the
time and he was intending to go to Hitler's summer house in
Bavaria in several days. He offered to bring me back an exact
report of his conversation with Hitler, if I would give him a letter
for President Roosevelt, to whom he wished to bring a final
report. (p. 34)
Schacht is the real master here, and government officials
don't dare order him to do anything. (Entry of January 3,1934)
(p. 82)
One evening my wife visited Baron Eberhard von Oppenheim,
who lives splendidly and quietly near us. Many German
Nazis were present. It is said that Oppenheim gave the Nazi
party 200,000 marks, and that he had received a special party
dispensation, declaring him to be an Aryan. (p. 86)
Ivy Lee and his son James came to lunch at 1:30. Ivy Lee
proved to be both a capitalist and advocate of fascism at the same
time. He told stories of his battle for the recognition of Russia,
and was inclined to give credit for it. His sole endeavor was to
raise American business profits, (p. 87)
Lazaron (an American rabbi) is here to gain information
about possibilities for the Warburgs, who regret Rabbi Wise's
extreme stand (against the Nazis), (p. 148)
The prominent Hamburg banker Max Warburg, brother of
Felix Warburg in New York, came to the embassy to see me at
the request of Rabbi Lazaron. The troubled life he had led in the
last few years showed on him, and he was now in danger of losing
his life if his views were ever made known to the government. He
stayed one hour. He thinks Rabbi Wise and Samuel Untermyer
in New York have severely jeopardized Jews living in the United
54
States as well as in Germany with their public outcry. He said
Felix Warburg was of the same opinion. These two men are in
complete agreement with Colonel House, who tries to ease the
Jewish boycott (against Nazi Germany) and to reduce the
number of Jews in high places in the United States. (p. 155)
I visited Eric Phipps and repeated confidentially a report that
Armstrong-Vickers, the huge British armaments concern, had
negotiated the sale of war materials here last week.. .Last Friday
I told Sir Eric that British armament people were selling massive
amounts of war materials here. I was frank enough—or indiscreet
enough—to add that I understood representatives of
Curtiss-Wright, from the U.S. were here to negotiate similar
sales. (p. 186)
I told Lewis that Hearst has supported and visited Mussolini
for five or six years. I informed him of Hearst's visit to Berlin last
September and his deal with Gobbels that the German Propaganda
Ministry should have all European Hearst-newspapers at
the same time as the United States, (p. 221)
Poor Lazaron was very upset because so many rich Jews have
capitulated to the Nazi leadership and are influential financial
aides to Dr. Schaft, who finds their support in the present
situation very important, (p. 236)
Even the Nurnberg Trials could not suppress the evidence of the once close,
friendly and good relations between English-American capital, its governments
and Hitler, in spite of the efforts of the court to guard zealously that this side of the
issue was never raised, by declaring statements about it "irrelevant and immaterial."
Schacht in particular mentioned this critical subject.
When Schacht brought up again the relations of foreign powers
to the National Socialist regime and the assistance they bestowed
upon it, the court decided that this information had nothing to
do with the issue, and was therefore inadmissible.. .Schacht had
let representatives of foreign powers convince him they should
support the National Socialist government in its infancy. The
court refused to admit all these statements. (NZZ no. 758, May
2, 1946)
Funk wrote a report (on the financial aid Hitler received from capitalists) that
shed light on the early history of the Third Reich in an interesting way. The role
of the donors must be given great importance, because their gifts and the assistance
they otherwise granted promoted Hitler's rise extraordinarily. For that reason a
heavy historical burden rests on the bankers and industrialists concerned. Along
with Schacht, von Papen and Hugenberg they belong to the "steps of the ladder,"
that group of influential men who made important contributions to the final
success of National Socialism. (NZZ no. 805, May 8, 1946)
Baldur von Schitach spoke more than an hour long about his
youth and said, among other things, that it had been Henry
Ford's book The International Jew that had converted him to
anti-semitism. (NZZ no. 916, May 24, 1946)
55
These are several illustrations of Hitler's support through foreign capitalists.
This collection could go on forever. The examples mentioned are enough for our
purposes.
Hitler was made not only by German capital, but primarily by international
and especially America capital that intervened decisively from the beginning, from
ca. 1920, in the battle for power in Germany. If this German battle for power had
been decided within the Weimar Republic by German means only, then Hitler
would never have won. Hitler became the strongest man in Germany because he
had access to the strongest international assistance. His strength and success can
only be understood at all when this fact is taken into account.
The Warburg report can be genuine. We do not assume that is genuine because
we lack absolute proof (incidentally proof is also lacking to assume forgery). So the
Warburg report remains a problem for the time being. One can certainly assume
that the Warburg report is symbolically true, since it describes in a simple, generally
understood and plain way the actual relations Hitler and American and
international capital, evidence which has been proven a thousand times over. Hitler
used American and international capital to cause World War II, to destroy and
finally occupy Germany and Europe.
Who is worse, the instruments or their instigators, who subsequently wash
their hands in innocence, and damn their own instruments and creations, disposing
of them as dangerous witnesses in the end? An "order" that needs such instruments
and means must be condemned.
The Warburg report, should it be genuine, is one of the most interesting and
important documents of our epoch as it illuminates that whole area of darkness in
which Hitler and the second World War were made, and because it proves that the
core of international capital, American capital, is war criminal number one.
It is over and above a sociological and political "textbook" of the first order,
because it presents relations between economy and politics of our time concretely,
as living testimony, giving the reader a look into the secret inner chambers of the
capitalist empire. At the same time it is a shattering document, because it is made
abundantly clear that the unbelievable suffering and sacrifice of humanity in the last
fifteen years were brought about and suffered in the interests of international and
especially American high finance. It is an obligation to general power and to
humanity to discover the truth about this report and to publicize and circulate it
to this purpose.
October 1946.