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Hjalmar Schacht Quotes

Powerful Hjalmar Schacht for Daily Growth

About Hjalmar Schacht

Hjalmar Schacht (September 21, 1877 – June 3, 1970), a German economist and politician, was a central figure in the political and economic history of Weimar Germany and Nazi Germany during the interwar period and World War II. Born in Hannover, Schacht studied law at Leipzig and Munich universities, earning his doctorate in 1900. His early career was marked by roles in banking and finance, including work for Darmstadt Bank and the Deutsche Bank. He quickly rose through the ranks, becoming the bank's managing director in 1917. In the post-World War I era, Schacht served as Finance Minister of the Weimar Republic, where he implemented policies aimed at stabilizing Germany's shattered economy. His most famous achievement was the Rentenmark plan, which restored price stability by replacing the inflated Mark with a new currency, the Rentenmark. In 1930, Schacht was appointed President of the Reichsbank, using his position to provide financial support for Adolf Hitler and the Nazi Party during their rise to power. In 1934, he became Minister of Economics in Hitler's government. Although initially supportive of the regime, Schacht began to distance himself from it after disagreements over economic policy. Schacht was arrested in 1937 on charges of treason and imprisoned until 1945. After World War II, he was put on trial for war crimes at Nuremberg but was acquitted due to a lack of evidence. Throughout his life, Schacht was known for his financial acumen and political savvy. His works include "The Credit System of the Reich" (1918) and "The Turning Point in Economic History" (1952). Despite his complex and controversial legacy, Schacht remains a significant figure in the history of 20th-century Germany.

Interpretations of Popular Quotes

"The bank makes an appraisal of the solvency and creditworthiness of the borrower."

This quote by Hjalmar Schacht refers to the process where a bank assesses the financial stability and ability of a borrower to repay a loan. The "appraisal" involves evaluating the borrower's income, debts, assets, and credit history to determine their solvency (ability to meet financial obligations) and creditworthiness (their reliability in repaying debt). This assessment helps banks decide whether or not to lend money and on what terms.

"Central banks can only conduct monetary policy effectively if they have a stable currency."

Hjalmar Schacht's quote underscores the importance of a stable currency for central banks to effectively execute monetary policy. In other words, a stable currency provides the foundation upon which central banks can successfully manage money supply, inflation, and interest rates without the destabilizing effects of excessive volatility or depreciation. A reliable currency enables central banks to maintain financial stability, promote economic growth, and preserve public confidence in their monetary system.

"Inflation is primarily a monetary phenomenon."

Hjalmar Schacht's quote emphasizes that inflation is largely a result of monetary policies, specifically the amount of money in circulation relative to the economy's output. In simple terms, too much money chasing too few goods can lead to an increase in prices (inflation). This quote underlines the importance of sound and prudent monetary management for maintaining price stability and a healthy economy.

"The task of a central bank is to maintain price stability as its primary objective."

Hjalmar Schacht's statement emphasizes the importance of maintaining price stability as the main goal of a central bank. Price stability refers to a state where inflation or deflation (a prolonged decrease in the general level of prices) is minimal, ensuring predictability and a consistent value of money over time. This is crucial for economic growth, as it reduces uncertainty and allows businesses and individuals to make informed decisions about spending, saving, and investment. In essence, Schacht's quote underscores the role of central banks in fostering a stable monetary environment that supports long-term economic prosperity.

"A loan should be made only when there is a reasonable prospect that it will be repaid."

This quote by Hjalmar Schacht emphasizes the importance of prudence in lending money. It suggests that before any loan is given, one should evaluate if the borrower has a realistic chance of repaying the debt. This principle not only applies to financial institutions but also to individuals and businesses when considering loans or investments. It helps to minimize risk, ensure financial stability, and maintain trust between lenders and borrowers.

And this thesis is somewhat connected with general social and political observations, because it establishes the fact that the number of consumers is considerably larger than the number of producers, a fact which exercises a not inconsiderable social and political pressure.

- Hjalmar Schacht

Fact, Larger, Which, Observations

The very necessity of bringing our armament up to a certain level as rapidly as possible must place in the foreground the idea of as large returns as possible in foreign exchange and therewith the greatest possible assurance of raw material supplies, through exporting.

- Hjalmar Schacht

Through, Very, Armament, Exporting

Rules are to be initiated for the allotment of scarce raw materials etc; and their use and processing for other than war, or otherwise absolutely vital, goods is prohibited.

- Hjalmar Schacht

Other, Otherwise, Initiated, Materials

Instead of a weak and vacillating Government, a single, purposeful, energetic personality is ruling today.

- Hjalmar Schacht

Single, Energetic, Ruling, Purposeful

It has been shown that, in contrast to everything which classical national economy has hitherto taught, not the producer but the consumer is the ruling factor in economic life.

- Hjalmar Schacht

Been, Which, Classical, National Economy

After the many rumours that we had heard about Hitler and the published criticisms we had read about him, we were pleasantly impressed. His appearance was neither pretentious nor affected.

- Hjalmar Schacht

Pleasantly, Read, Impressed, Rumours

Only the closest collaborators of the Fuehrer know how difficult is the burden of this responsibility; how sorrowful are the hours during which decisions must be made which bear upon the well being and the fate of all of Germany.

- Hjalmar Schacht

Fate, Germany, Fuehrer, Closest

I can assure you that everything I say and do has the complete approval of the Fuehrer and that I would not say or do anything that does not have his approval.

- Hjalmar Schacht

Say, I Can, Approval, Fuehrer

The German future lies in the hands of our Fuehrer.

- Hjalmar Schacht

Future, Hands, German, Fuehrer

Germany can generally only pay if the Corridor and Upper Silesia will be handed back to Germany from Polish possession, and if besides somewhere on the earth colonial territory will be made available to Germany.

- Hjalmar Schacht

Will, Made, Corridor, Colonial

The presentation of the Golden Badge of the Movement is the highest honor the Third Reich has to offer.

- Hjalmar Schacht

Presentation, Offer, Badge, Reich

The Jews must realize that their influence in Germany has disappeared for all time.

- Hjalmar Schacht

Jews, Must, Germany, Disappeared

Wherever my work may take me in the near future even if you should see me one day within the fortress - you can always count on me as your reliable assistant.

- Hjalmar Schacht

Always, Within, May, Wherever

Since our economy is closely allied with that of foreign countries, not one of us can be indifferent to what consequences these disturbances can have at home and abroad.

- Hjalmar Schacht

Economy, Abroad, Closely, Foreign Countries

Allied supplies of arms to Russia, and the manpower reserves of Russia have been sufficient to bring continuous counter-attacks against our Eastern Front.

- Hjalmar Schacht

Against, Been, Eastern, Continuous

The aim and the idea of the Four Year Plan were and remain entirely correct and necessary!

- Hjalmar Schacht

Aim, Necessary, Correct, Entirely

Material loss can be made up through renewed labor, but the moral wrong which has been inflicted upon the conquered peoples, in the peace dictates, leaves a burning scar on the people's conscience.

- Hjalmar Schacht

Through, Been, Which, Scar

With the aid of this credit policy, however, Germany created an armament second to none, and this armament in turn made possible the results of our policy.

- Hjalmar Schacht

However, Armament, Created, Credit

The repeated announcements that the Russian resistance was definitely broken have been proved to be untrue.

- Hjalmar Schacht

Broken, Been, Proved, Untrue

But the memory of war weighs undiminished upon the people's minds. That is because deeper than material wounds, moral wounds are smarting, inflicted by the so- called peace treaties.

- Hjalmar Schacht

Memory, Wounds, Weighs, Deeper

It stands, essentially, for the application of increased energy to the efforts already undertaken by my ministry since 1934 with the results shown in the above statistics.

- Hjalmar Schacht

Efforts, Increased, Stands, Essentially

But what you could perhaps do with in these days is a word of most sincere sympathy. Your movement is carried internally by so strong a truth and necessity that victory in one form or another cannot elude you for long.

- Hjalmar Schacht

Strong, Could, Carried, Sincere

Germany stays and falls with the success of the policy of Hitler.

- Hjalmar Schacht

Success, Stays, Falls, Policy

The economy is a very sensitive organism.

- Hjalmar Schacht

Finance, Economy, Very, Organism

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