The magic of money; translated from the German by Paul Erskine [Hjalmar Schacht] on *FREE* shipping on qualifying offers. Hjalmar Schacht. Oldbourne, – Bibliographic information. QR code for The Magic of money. Title, The Magic of money. Author, Hjalmar Schacht. Hjalmar Horace Greeley Schacht (22 January – 3 June ) was a German economist, banker, centre-right politician, and co-founder in of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank . Schacht, in his book The Magic of Money (), wrote that Montagu.

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This was the first time that the Reichsbank brought hoarded foreign exchange back into its coffers.

The German word expresses most succinctly the real significance of the means of payment: To meet the needs of its people for agri- cultural products and of its industry for raw materials, imports are essential. They originate in the mind of a single individual, never in a multitude of individuals, never lf.

The magic of money lies in its protean nature, which enables it to be used at all times, in all directions and for all purposes. The result was a lively protest by the publishers addressed to my management.

During the two years after taking my degree, monney I spent as syndic of a commercial association, I must somehow have drawn attention to myself. In the seventeenth century Philippine, the daughter ofWelser, proprietor of a large banking and merchant house in Augsburg, became the wife of the Austrian Archduke Ferdinand IT. I repeat them here because I wish to base this book, as far as possible, on my own experiences.

In such cases it gave an assurance that it would redeem hjaljar emergency notes exactly as if they were its own bank- notes.

It held the view that it was useless to attempt to. However, only too often political desires stand in the way of such self-examination. This negotiability provided the impetus for the creation of the stock exchanges. Had I given in to this pressure the work of stabilisation winch had just begun would have been in vain from the start.

The next monetary absurdity confronted me with the problem of how Germany was to pay the reparations with which it had been saddled after the First World War.


In constantly repeated public exhortations I warned both the German borrowers and the foreign lenders against the clangers of this course, always without avail. This huge demand for capital must, if the wishes of the philanthropic are to be met, be supplied by that remaining third of the world which has lost and squandered a large part of its savings in the dchacht of two cataclysmic world wars. The Italian was Caruso, already world famous: Uneasy Money Commentary on monetary policy in the spirit of R.

Donald Forster marked it as to-read Dec 30, When in a great cholera epidemic had broken out in Ham- burg I had spent a week with grandfather Schacht, and had come to know my family home in Ditmarschen. To pay out ninety million Marks in Pounds Sterling today – a year after the stabilisation – is not a trivial matter, not even for the Reichsbank.

National Trust Places Exploring the issues, leading the debate. One amongst the many plans suggested aroused special interest: One can note with satisfaction that the endeavour to found overseas establish- ments has recently come to life shcacht again, invigorated by the fact that German exports have gained an unexpected momentum in the last few years. Such clients needed credit for the purchase of foreign raw materials and foodstuffs, as well as for the sale of producer and consumer goods.

New capital and new means of production had to be brought into existence. Money became the epitome of property. In a whole series of plans aimed at restoring stable money were published, and publicly discussed. They were fed with advertisements, particularly with fo to reprint prospectuses giving details of new issues of shares or bonds.

Hjalmar Schacht

I once asked him to what he ascribed the fabulous rise of his house. In the majority of cases, however, inflation comes about through mistaken financial policy, or even more frequently because the costs of wars and armaments exceeded income from taxes. Despite my interest in the life of Christian Ulrich Detlev Eggers, my admiration for him did not lead to my deciding to become a banker or financier.

The necessary propa- ganda is spread by meetings, the press, radio, television, and political pamphlets. For all who still remember it, the fall in the value of money at this time meant reductions in property values, impoverishment of the upper and lower-middle classes, corruption in the government and the civil service, undernourishment, and the rise of doubtful personalities to sudden riches.


The Magic of Money

However, since such individual measures did not have the desired effect, the central bank in May insisted that the banks instigate a drastic restriction of credit to customers for securities. I maic not wish to imply that Ullsteins gave way for financial reasons.

The problem was to create a currency with which the small man could once again operate. Of course, my flight from medicine was no solution.

For this reason the need Co acquire money is, next to love, the most universal of human urges. From Wikipedia, the free encyclopedia. BySchacht had left the small German Democratic Partywhich he had helped found, and began increasingly lending his support to the Nazi Party NSDAPto which he became closer hte and A bare ten days later the rate of exchange of 4.

War and Diplomacy in Eastern Asia reprint ed.

The Magic of Money by Hjalmar Horace Greeley Schacht

Naturally they were not all business people. Although I gained practice and proficiency in writing newspaper articles and in speaking at conventions during these apprentice years, I did not see my future in representing one-sided economic interests.

Spiros Lavdiotis marked it as to-read Dec 16, After the shameful events of November which culminated in the destruction of the Jewish synagogues, I publicly declared my repugnance at these acts of terrorism. Today there is hardly a politician who would not maintain that his thinking is socially oriented. Still, at Schacht’s denazification trial subsequent to his acquittal at Nuremberg it was declared by a judge that “None of the civilians in the resistance did more or could have done more than Schacht actually did.