GERMANY'S REICHSBANK PRESIDENT

Hawke's Bay Herald-Tribune, Issue 172, 7 August 1937, Page 11

GERMANY'S REICHSBANK PRESIDENT

Dr. Schacht's Personality

OHOBTLY AFTEB the German crash Of 1923, some tactleas American bankers advised Dr. Schacht, then newly appointed President of the Keichsbank, to come and study finance in New York, writes "Flooclliglit " in World Eeview. Europe's currency juggler No. 1 had his answer pat. "Any fool," he said, ' • can l)e a -successful banker when he has more millions to handle tlian the xest of the world put together. If you want to know what banking is, come *to Berlin, where we have to bank on notMng." * But ex nihilo nihil fit, and there .is no cash to be got out of bartering Hungarian. plgs for German machinery; hence 3>r. S-chacht's recent visit to Brussels and liis more Teeeptive attitude towards the idea of lowering trade "barriers. Bjalmar Horace Greeley Schacht, son of a Danish mother and of a father who admired the great American demoerats, has always been a close student of British financial methods. His univcrsity doctorate was obtained for a tlsesls on Englisli mercantilism. Later, when he became head of the Eeichsbank, one of his first steps was to consult the Direetor of the Bank of England, Mr. Montagu Norman, who helped him over his proposal .to , set. up- a gold bahk in Berlin. At that time the mark stood at 150,000,000,000 to the £. It took 1783 printing presses, running in 133 offices, and some 30 paper mills, working day and night, to keep pace with the currency collapse. By inventing the Een'tenmark, Dr. Schacht succeeded at last in crossing offi the noughts. In spite of his bizarre* appearance, Dr. Schacht has a highly developed sense of humour. *He would be far lesa "ugly if he did not always weaT illfittihg pince-nez and a ludicrously high ( collar, which he generally puts on the wrong way out. Yet, when, as often happens, the funny side of walking on ihe financial tight-rope strikes him, he can chuckle " as merrily as any of his critics. Bnt, although Dr. Schacht can see a : joke, he has little tact. Eor instance, :

while talking to an English banker, hn has been known to quote the mark exehange in terms of dollars or to ask him when he is Teturning to V£all Street. In other words, if his mind happens to be foeussed on. New York, London doesn't come into the picture and he sees no need for diiferentiating between the English-speaking peoples. Besides, in the old pre-erisis days, it was only natural for Schacht to be preoecupied with America. • As he once told a friend -then, '-'I cannot walk past the Adlon Hotel with out an American running out and oifering me a loan." Dr. Schacht. is the one person who can 'safely criticise the Nazi regime, But he is- by no> means'-out of sympathy with it. If the four-year plan

for self-sufliciency car be worked, he will work it; hor is he likely to favour any- economie concessions to cther countries. without a political quid pro quo. He has always advocated the return to Germany of her former eolonies. Over-thirty years ago he was a member of a Colonial Club in Berlin, wliich, although not attended by colonials, held regular meetings. The members sat round a table over which liung an illuminated sign with the t'oliowing inscription; "Es muss was geschehen" (something must be done about it). Dr. Schacht's attitude has not changed.