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Hjalmar Schacht was a German banker and financial expert who achieved international renown by halting the ruinous inflation that threatened the existence of the Weimar Republic in 1922â23. He also served as minister of economics (1934â37) in the National Socialist government of Adolf Hitler.
Inflation drives up the cost of everyday goods, affecting what you pay for items both large and small.
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Appointed vice director of the Dresdner Bank in 1908, Schacht served during the early part of World War I as financial consultant for the German occupation government at Brussels (1914â15) and in 1916 was named director of the German National Bankâsubsequently the amalgamated DarmstĂ€dter and National Bank. In 1923, as special currency commissioner in the finance ministry, he developed a rigorous monetary program for halting rampant inflation and stabilizing the mark, and in December of the same year he was appointed president of Germanyâs leading financial institution, the Reichsbank. Later (1929) he headed the German delegation at Paris during the negotiation of a new plan of reparations payments for Germany but subsequently rejected the conferenceâs major handiworkâthe Young Plan.
Resigning his Reichsbank presidency in 1930, Schacht cultivated an alliance with the German right-wing parties. After Hitlerâs accession to power (January 1933), he was reappointed president of the Reichsbank, a position he retained through his subsequent tenure as German minister of economics (1934â37). As economics minister he was responsible for the National Socialist unemployment and rearmament programs; but his rivalry with Hermann Göring, who in 1936 had become virtual dictator of the German economy, led to Schachtâs resignation. Opposing Hitlerâs rearmament expenditure, he was in 1939 dismissed as Reichsbank president. He was imprisoned after the attempted assassination of Hitler that took place on July 20, 1944, and was later captured by the Allies. Arraigned before the International Military Tribunal at NĂŒrnberg after World War II, he was ultimately acquitted. He subsequently founded his own bank in DĂŒsseldorf and served as financial consultant for several countries.
