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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The Magic of Money – Hjalmar Schacht and how to defeat hyperinflation.

I was compelled to think of these events and experiences when, as Commissioner for National Currency and President of the Reichs- bank, I did everything to take the Rentenmark, which was similarly based on landed property, out of circulation as quickly as possible. The only good which came out of this affair was that the esteem accorded to Reichsbank and the German currency in the City of London was greatly augmented.

It had raised considerable amounts of credit on the London capital market, and had been unable to honour its debts as a result of unsuccessful speculations. It demands a feeling of responsibility for the economic health of the commonwealth. In he urged Hitler to reduce military spending, turn away from autarkic and protectionist policies, and reduce state control in the economy.

After trials and errors in medicine, after a love affair with German philology, and after preparatory studies in economics I made my career in banking. At the age of thirty-two I was promoted to branch management, and this appointment greatly increased’ my insight into the German economy, since I then had to make frequent visits to other bank branches, each with its own problems. The general laughter proved to me that I had caught the right person.

In taking delivery of his materials he incurred considerable credits with large industrial firms, amongst them a nationalised undertaking. Today, every client is showered with such bulletins by his bank: My striving was for positive action in the general interest in the field of political economy. One can bet large odds on the likelihood that a reader or viewer who is bombarded daily with a certain point of view will make room for this view in his thinking and be influenced by it.

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In the years between the Dawes and the Young plan I experienced a noteworthy example of the inter-connection between the monetary economy and foreign politics. Schacht also found an innovative solution to the problem of the government deficit by using mefo bills.

Hjalmar Schacht – Wikipedia

To make such comparisons is to play with numbers. In constantly repeated public exhortations I warned both the German borrowers and the foreign lenders against the clangers of this course, always without avail. The Berlin stock exchange schaht an imposing building.

There was a schhacht obstacle to the stabilisation of the Mark. The clique koney, and the strong ascendancy of personal ambition, spoilt my appetite for aedve collaboration.

Where did this money come from? It is true that we call well-to-do people millionaires, and thus unwittingly link this term with the currency concept – Mark millionaire, Dollar million- aire. To guard against such eventualities the politician responsible for monetary and currency policies needs strength of character which frequently put his office as well as his person to the test.

For many decades Great Britain occupied the top position in the international banking world.

Scientists, soldiers, civil servants, clergymen, teachers, politicians, writers and many others fall into this category.

Want to Read saving…. Perhaps it is due to my studies of economics that although my talents lay in the world of business, I was always fascinated by the connect- ions between science and business, and their significance for the development of the national economy. In the following pages I will endeavour to show how all these economic and financial problems were solved. But I have a suggestion: Want to Read Currently Reading Read. As a corollary, the proportionally higher rise in the price level compared to the supply of money creates a monetary scarcity, which actors are trying to overcome by hhalmar expenditure thereby raising the velocity.


All business connections with this bank, which — though this is no excuse — was experiencing some difficulty in maintaining its liquidity, hjalmwr severed immediately. On a journey through Turkey which I made with some friends in the conversation turned to our future careers. The Magic of Money. The Reichsbank upon which this responsi- bility fell could not make up its mind to take action. Siemens was a practical political jhalmar of the first rank, who had grasped the significance of the banking system in the development of the economy.

The most liquid and most remunerative investment available to a bank is the commercial bill, which is as a rule repayable in a period not exceeding three months, while its security and negotiability is assured by special laws.

A later example of the con- nection between money and foreign policy concerned me personally to a much greater degree than die Belgian-German failure. I asked him why he had not taken his custom to the Bank of Dresden, and received the reply that he had in the course of previous dealings with the Bank of Dresden kept an eye on me, and that as a result he had confidence in me.

Everything had to be done to prevent any new in- flation in the future. Rgarg is currently reading it Jan 14, The function of the bank was to act as a kind of referee should differences arise between the two largest shareholders.

Young Stinnes showed me his books, which indicated a great fortune, but also a large indebtedness. But the fact that it deals with an interesting chapter in economic history is not the only justification for this book. In assisting in founding the party I never sought a seat for myself.