Hjalmar Schacht

Schacht supported public works programs similar to Franklin Delano Roosevelt's New Deal, most notably the construction of the Autobahn to attempt to alleviate unemployment - policies which had been instituted in Germany under legislation drawn-up by Kurt von Schleicher's government in late 1932, and had in turn influenced Roosevelt's policies.

Jauary 17, 1936: Gφring delivers his famous 'guns versus butter' speech: "Schacht and his Ministry of Economics had been told six months earlier to start making secret economic preparations for war, and he had used considerable sleight of hand to find the necessary funds so far. Along with a number of decidedly dodgy financial maneuvers, he had been forced to create a siege economy, banning virtually all consumer imports and severely restricting foreign currency transactions. But he believed there were limits beyond which he dared not push the long-suffering German public. 'They are being starved of oil to cook with, butter for their bread, meat for a Sunday dinner,' he told Gφring. 'Soon there will be a black market, and then we will have to start shooting people. I simply cannot spare you any more money.' Schacht might have been one of the worlds most brilliant economists, but he was no politician and knew little about ordinary people. Gφring, on the other hand, knew nothing about economics, but everything about what the German people really wanted. For three weeks he worked with Pilli Koerner on a major speech, which he then delivered with great panache to a mass rally in Hamburg, the city where the loudest complaints about austerity rations had been made. Wearing his Luftwaffe uniform and looking quite drawn after his latest bout of slimming, he began by outlining the tremendous progress that had already been made in restoring German pride through rearmament. He then moved on to remind his audience of the shaming restrictions still imposed on their country by Versailles. Only through strength, he told them, could Germany regain her rightful place in the sun. Having softened the meeting up, he delivered the killer punch. 'I must speak clearly,' he cried. 'Some people in international life are very hard of hearing. They can only be made to listen if they hear guns go off. We are getting those guns. We have no butter, comrades, but I ask you: would you rather have butter or guns? Shall we bring in lard, or iron ores? I tell you, being prepared makes us powerful. Butter only makes us fat!' He slapped his hollow belly to emphasize his point, and the meeting erupted into roars of approval. Radio listeners all over Germany joined in. Hitler sent him a telegram of congratulations. Schacht came up with the money for the Luftwaffe. The speech was reported around the world. The defining phrase, 'guns or butter' entered the international vocabulary. Gφring, of course, never had to make the choice for himself - he could always have both. But no one ever mentioned that." -From 'The Devil's Disciples' by Anthony Read. http://members.tripod.com/gooring/goo47.html

"Schacht and his Ministry of Economics had been told six months earlier to start making secret economic preparations for war, and he had used considerable sleight of hand to find the necessary funds so far. Along with a number of decidedly dodgy financial manoeuvres, he had been forced to create a seige economy, banning virtually all consumer imports and severely restricting foreign currency transactions. But he believed there were limits beyond which he dared not push the long-suffering German public. 'They are being starved of oil to cook with, butter for their bread, meat for a Sunday dinner,' he told Goering. 'Soon there will be a black market, and then we will have to start shooting people. I simply cannot spare you any more money.' Schacht might have been one of the worlds most brilliant economists, but he was no politician and knew little about ordinary people. Goering, on the other hand, knew nothing about economics, but everything about what the German people really wanted. For three weeks he worked with Pilli Koerner on a major speech, which he then delivered with great panache to a mass rally in Hamburg, the city where the loudest complaints about austerity rations had been made. Wearing his Luftwaffe uniform and looking quite drawn after his latest bout of slimming, he began by outlining the tremendous progress that had already been made in restoring German pride through rearmament. He then moved on to remind his audience of the shaming restrictions still imposed on their country by Versailles. Only through strength, he told them, could Germany regain her rightful place in the sun. Having softened the meeting up, he delivered the killer punch. 'I must speak clearly,' he cried. 'Some people in international life are very hard of hearing. They can only be made to listen if they hear guns go off. We are getting those guns. We have no butter, comrades, but I ask you: would you rather have butter or guns? Shall we bring in lard, or iron ores? I tell you, being prepared makes us powerful. Butter only makes us fat!' He slapped his hollow belly to emphasise his point, and the meeting erupted into roars of approval. Radio listeners all over Germany joined in. Hitler sent him a telegram of congratulations. Schacht came up with the money for the Luftwaffe. The speech was reported around the world. The defining phrase, 'guns or butter' entered the international vocabulary. Goering, of course, never had to make the choice for himself - he could always have both. But no one ever mentioned that." -From 'The Devil's Disciples' by Anthony Read. (Read) http://members.tripod.com/gooring/goo47.html