Excerpt from Demystification of the Birth and Funding of the NSDAP by Veronica Kuzniar Clark
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At the end of 1920, the NSDAP had about 3,000 members. Membership then grew from 27,000 in 1925 to 108,000 in 1928. In August 1931 the NSDAP created its own intelligence and security sector. Heinrich Himmler established the SD (Sicherheitsdienst
) and Reinhard Heydrich was appointed head of the organization, which was kept separate from the SS (Schutzstaffel
). By the time of the Strasser crisis, the SA was some 400,000 members strong and the party itself had grown to 2 million by 1933. In 1932, it was large enough to achieve control of 37% of the Reichstag.
One can see that the NSDAP lost most of its former 230 seats as of July 1932 to the even more radical-revolutionary Communist Party (KPD) in November 1932, not to conservative Catholics or social-democrats. The conservative nationalists (DNVP) only gained 15 seats. These results, contrary to most historiography, do not imply the demise of the NSDAP, but the masses’ disaffection with any party that was not willing to promise sweeping social and economic change for the majority, even if change meant bloodshed. Hitler and the NSDAP were not viewed as extreme enough, so they lost seats to the KPD! This alarmed men like Hjalmar Schacht and Franz von Papen so much that they were finally willing to give Hitler the opportunity to become chancellor.
He actually should have received the chancellorship in July 1932 when his party had the most seats in the Reichstag, but the industrialists and noblemen surrounding General Schleicher, Franz von Papen and President Hindenburg opposed his appointment to the chancellorship. So much for James Warburg’s and the Rothschilds’ “magical funding.”
Hitler faced so much resistance at this stage that he, like others, resorted to blackmail. Hitler arranged a private meeting with President Hindenburg’s son Oskar, during which he is suspected to have threatened to expose his father’s role in the repeated taxpayer bailouts of the Junkers’ mismanaged, bankrupted estates. Since blackmail and intrigue had been used to cheat Hitler of his due appointment, he decided that he could also play such a game. Hindenburg appointed him chancellor shortly thereafter, which most historians claim was at the behest of von Papen. We see that von Papen’s desire to prevent a Communist majority by giving Hitler the chancellorship was only partly why Hindenburg appointed him. Hitler won, but not because he received covert funding. Franz von Papen continued to intrigue against Hitler and urged industrialists to withdraw their financial support of the NSDAP! The goal of this so-called “cabinet of barons” was to give Hitler just enough power to satisfy him personally without actually allowing him to attain a majority strong enough to overthrow the status quo, but just strong enough to prevent a Communist majority.
Given this context of stalemate, the speed of the NSDAP’s growth in just 6 years and its subsequent attainment of absolute power were only possible with an authoritarian leader in a crooked political situation in which blackmail, corruption and political sleight-of-hand were the order of the day. What had started as a democratic-style workers’ party with a simple executive committee to which Hitler was appointed in the early 1900s became an authoritarian-style organization with its own uniforms, offices, training facilities, insurance company, merchandise, newspaper, propaganda machine, army (the SA) and security apparatus (SS and SD).
This was nothing short of impressive and most of the credit for its success goes to those leaders and members like Hitler, Hess, Gansser, Eckart, Funk, Schwarz, Feder, Keppler, Himmler, Rosenberg, Goebbels, the Strassers (before 1932), Scheubner-Richter, Hanfstaengl, Lüdecke, Göring and Röhm, all of whom literally devoted their lives to the party.
NSDAP events were staged as often as they could be afforded. The newspaper was of course always available—it was a daily—so the public and members always knew what was going on from day to day. Hitler gave speeches and met with important wealthy persons almost non-stop after his release from prison. He was keen enough to purchase motor vehicles, which were rare in those days. Speedy travel was vital to defeating rival parties like the Communists, who still had to walk to their various speaking engagements and meetings. The NSDAP’s doors, so to speak, were always open to receive new recruits. Interested persons either signed up at simple on-site recruitment centers or they mailed their applications to the party’s headquarters in Munich.
Inconvenient facts about Hitler and the NSDAP
The following is a list of important facts gleaned from the Pools’ Who Financed Hitler.
This list clarifies and summarizes our introduction to the NSDAP’s development, support and financing. More importantly, this list exposes numerous myths
associated with Hitler and the NSDAP, such as Hitler’s “militatarism,” NSDAP funding via Paul or Sidney (James) Warburg and the Rothschilds, and Hitler’s unpopularity amongst most Germans.
• Gustav Stresemann was as militarily inclined as Adolf Hitler. Thus the idea that Hitler’s appointment to the chancellorship meant war in future is moot.
• Upper-class hostages, including members of Thule, were literally lined up and murdered in 1918 by the Communists. A total of 12 hostages were shot in a schoolyard in Munich.
• The Pools noted that since the German economy was not harmful to most industrialists’ profits overall, they as a group wished to uphold the status quo. And that
was the problem with them from the perspective of revolutionary parties like Hitler’s, as well as the impoverished, unemployed millions.
• Hitler and Hess, not Göring and Goebbels as claimed by “Sidney Warburg,” solicited money in 1929. German industrialist Emil Kirdorf likely gave the NSDAP money at this time.
• Radek, Levine and Axelrod, all Communists, were Jewish. These three men and the terror they inflicted upon Fritz Thyssen and his father personally, including imprisonment and death threats, changed Thyssen’s life. From that point on he supported Hitler, and fervently so.
• French martial law and Ruhr resource demands were too much for Fritz Thyssen. He was arrested and fined 300,000 gold marks for encouraging German workers to passively resist French military occupation. The French opened fire on these German workers killing and wounding hundreds.
• Thyssen downplayed his support of the National Socialists. He gave 1,250,000 Reichsmarks between 1928 and 1929. This was the exact timing of Sidney Warburg’s alleged covert cash transfers to Hitler.
• Kirdorf had Jewish friends and bank connections, including Dr. Arthur Salomonsohn. In spite of these big money connections, Kirdorf gave very little to Hitler and the NSDAP.
• Thyssen and Kirdorf saw little hope for Germany. France and England had a monopoly over one quarter of the world and were determined to crush Germany’s global competitiveness.
• The Versailles Dictate was Germany’s economic end—really, truly and totally.
• The “Treaty” was actually an economic weapon designed to permanently cripple Germany as an industrial competitor. Germany’s total reparations payments amounted to $32 billion, which equates to $425 billion today, or $6.6 billion per year.
• The NSDAP was not put into power by international Jewish interests as some researchers suggest. The NSDAP fought for its power. For example, in just a single street battle between the National Socialists and Communists, 300 men were killed. Hitler struggled for 14 years to achieve power and was nearly shot dead during his attempted putsch, facts which challenge this thesis.
• The I. G. Farben conglomerate and high finance never
factored into the Hitler-NSDAP equation before 1933.
• According to the Pools, since nothing Germany did had worked to relieve the unemployment and trade imbalance, an imperialist policy was necessary for Germany’s economic survival. She had earnestly tried everything else.
• Big business’s main motive for supporting Hitler and the NSDAP was to prevent Communism at all costs.
• General von Seeckt operated under a façade of pro-democracy (like Hitler) until the day when all democratic chains could be broken. Indeed the intellectual
demilitarization of Germany was, to von Seeckt, the greatest threat of all.
• Russo-German military collaboration was championed by von Seeckt, not Hitler, and started in 1921. (Before the Treaty of Rapallo). Von Seeckt was instrumental in this collaboration. Lest we overlook it: Hitler, and no one else, had a reserve army—the SA. Thus the years 1921 to 1922 saw some degree of Russian funding of the NSDAP via the Reichswehr’s secret Russian collaboration efforts.
• The Allies destroyed Krupp’s industry, which provided Krupp with a key motive for later supporting the NSDAP. Krupp, with the help of foreign subsidies, established anonymous companies to carry out arms construction and testing in neutral countries long before Hitler came to power.
• Stresemann, like Hitler, wanted to see Germany reemerge as a world power. Neither von Seeckt nor Stresemann was a liberal-democrat (i.e. neither supported democracy, which was imposed
upon Germany against her will.)
• Holding companies were used to rebuild the German Navy in the early 1920s, long before Hitler’s ascension.
• “Liberal-Democratic” Weimar Germany was providing covert assistance to German rearmament efforts in every way possible. Krupp was subsidized by the Weimar regime, not by Hitler.
• Given the industrial context of that time period, Thyssen’s industry would die without total rearmament. This was a consequence of Germany’s overdependence on industrialization,. As suggested by Lawrence Dennis in The Dynamics of War and Revolution
, a developed nation like Germany had the choice to contract severely in every way, including population-wise, or expand. Most German leaders opted for the latter.
• German rearmament began earnestly “production-wise” in 1928—five full years before Adolf Hitler was appointed chancellor.
• The Social Democrats, SPD, supported rearmament.
• Rearmament does not prove that Germany was planning aggressive warfare or that Germany was “militaristic.”
"I felt sorry for the German people. We were planning - and we had the force to carry out our plans - to obliterate a once mighty nation." - Admiral Daniel Leahy; U.S Ambassador
MYTH 1. THE GERMAN NATION IS AN AGGRESSIVE NATION
The facts prove otherwise. A Study of War by Prof. Quincy Wright, shows that in the period from 1480 to 1940 there were 278 wars involving European countries whose percentage participation was as follows:
GERMANY (INCLUDING PRUSSIA) 8%
Likewise, Pitirim Sorokin, Vol.111, Part.11, Social and Cultural Dynamics, shows that from the 12th Century to 1925 the percentage of years in which leading European powers have been at war is as follows. (p.352).
COUNTRY PERCENTAGE OF YEARS AT WAR
Sorokin concludes therefore, "that Germany has had the smallest and Spain the largest percent of years at war." Of leading modern European states, England, France and Russia show clearly twice the aggressive tendencies of Germany.
From the years 1815 to 1907 the record stands as follows:
BRITAIN 10 wars
RUSSIA 7 wars
FRANCE 5 wars
AUSTRIA 3 wars
PRUSSIA-GERMANY 3 wars
GERMANY DID NOT WANT WAR
"I believe now that Hitler and the German people did not want war. But we declared war on Germany, intent on destroying it, in accordance with our principle of balance of power, and we were encouraged by the 'Americans' around Roosevelt. We ignored Hitler's pleadings not to enter into war. Now we are forced to realize that Hitler was right." - Attorney General, Sir. Hartley Shawcross, March,16th, 1984
"The last thing Hitler wanted was to produce another great war." - Sir. Basil Liddell Hart
"I see no reason why this war must go on. I am grieved to think of the sacrifices which it will claim. I would like to avert them." - Adolf Hitler, July, 1940.
Winston Churchill agrees: "We entered the war of our own free will, without ourselves being directly assaulted." - Guild Hall Speech, July 1943.
MYTH 2 - THE GERMAN ARMED FORCES OUTNUMBERED THEIR NEIGHBOURS
30 Active Divisions
10 Reserve Divisions
12 Large Cavalry Brigades
Poland had nearly 2,500,000 trained men available for mobilisations.
65 were active divisions
Including 5 cavalry divisions, two mechanised divisions, one armoured division, the rest being infantry. On the German borders stood the French commandstood 85 Divisions and could mobilise 5,000,000-armed troops. These were supported backed by five British divisions.
Britain's relatively small but high quality Regular Army was supported by the Territorial Army consisting of 26 Divisions with plans well in hand to boost this to 55 divisions. This of course was in turn supported by the then world's largest conscription army holding an empire 'upon which the sun never set.'
The British Empire consisted also of the former German 'empire' of New Guinea, Nauru, Western Samoa, South West Africa, Quattar, Palestine, Transjordan, Tanganyika, Iraq, Togoland and the Cameroons. These territories stolen from Germany added another 1,061,755 square miles to the British Empire, the equivalent of 35 Scotlands
Against these formidable forces Germany was able to mobilise just ninety-eight divisions of which only fifty-two were active (including Austrian divisions). Of the remaining 46 divisions only 10 were fit for action on mobilisation and even in these the bulk of them were raw recruits who had been serving for less than one month.
The other 36 divisions consisted mainly of Great War veterans over the age of forty who were unfamiliar with modern weapons and up to date military techniques.
THE BALANCE SHEET
On the balance sheets it can be seen that the Poles and French alone, not counting Britain and its Empire, had the equivalent of 130 divisions against a total of 98 German divisions of with 1/3rd were virtually untrained men.
In terms of trained soldiers the Germans were at an even bigger disadvantage. (Note at the outbreak of war over 50% of the German armed forces was horse drawn).
WAR IN THE AIR
"The superiority of the Luftwaffe has been greatly exaggerated to create the impression that Britain was the underdog; a David fighting Goliath. In the run up to the Battle of Britain (August 10th 194) the Luftwaffe had 929 fighters available; mostly single-engine Messerschmitt 109s. Of these 227 were twin-engine long-range Me110s which had a top speed of 350mph. Although it had a faster rate of climb it was inferior when turning or manoeuvring.
The ME109's range restricted its field of operation. Their real fields of operation ¬ out and back ¬ was a little over 100 miles, a flight time of barely 95 minutes and a tactical flight time of just 75 minutes. This was a sever handicap when it is considered that whereas the Luftwaffe pilots were operating scores of miles from their base, British pilots were often within sight of their own. This handicap was made more critical by the fact that downed RAF pilots could be rescued whilst Luftwaffe pilots were of course ¬ if they were lucky ¬ imprisoned.
The twin-engine ME110 was a slow flyer able to cruise at a little less than 300mph and was easily outpaced by the RAF's Spitfires. It was also 'sluggish in acceleration and difficult to manoeuvre.'
The greatest handicap for the Germans however was there primitive radio equipment. Unlike the British versions it was poor in air-to-air operation and could not be controlled by the ground.
On the British side a total surpassing 650 fighter aircraft had been amassed by mid-July, mostly Hurricanes and Spitfires although including nearly 100 of the older types. During that whole year Britain produced 4,238 fighters compared with a derisory 3,000 manufactured by Germany.
In terms of armaments the noted British military historian, B.H Liddell Hart noted: "What is quite clear, and became evident at the start, was that the German bombers were too poorly armed to be able to beat off the British fighters without a fighter escort of their own." ¬ History of the Second World War.
• Both France’s and Poland’s militaries were threatening to encircle and occupy Germany in 1919.
• All of the German power elite had the same goal, only different methods of achieving that goal—to reestablish Germany as a world power. However, only Adolf Hitler understood international power politics or “economy by the sword.” Hitler asked the industrialists in 1927: Does it benefit our
nationality now or in the future, or will it be injurious to it? Expediency is the basis of all alliances.
• France, not England, was Enemy Number One in Hitler’s view.
• Political bribes were not illegal in the Weimar Republic.
• The rule of special interest groups and the power of money (with which to buy Reichstag deputies) destroyed the Weimar Republic’s chances of survival. Both are, in fact, inherent features of all democracies, which intentionally give the masses the illusion of power and voice in government to prevent their discontent.
• The SPD was the political instrument of the trade unions and the bureaucracy of organized labor. All of the rest, save the KPD, were big business’s interest groups incognito.
• Walther Rathenau set the Weimar “big business” precedent, not Hitler or the NSDAP.
• The Ruhrlade was a secret society of heavy industrialists, with 12 members, who met secretly to set joint economic and political policy.
• Hugenberg and the Nationalist Party had far more big business and discreet financial backing and prestige than the NSDAP. But not even Hugenberg was an industrialist's tool. He opposed the Anglo-Freemasonic Dawes Plan while several of his industrialist backers supported the plan.
• The Anglo-Freemasonic Young Plan was enacted 11 years after the war, which demanded that Germans pay “reparations” for the next 59 years!
• Hugenberg and Strasser both underestimated Hitler. He was no one’s “pawn.” This was already evident around the time of the passing of the Freedom Law in 1929, right around the time of Sidney Warburg’s alleged cash promise to Hitler. The Warburg myth was used to discredit Hitler by the Strasser-Stennes faction of the NSDAP. Stennes, with 80,000 SA men under his command, seized the NSDAP headquarters in Berlin and occupied it to destroy Hitler, but Hitler was able to largely circumvent recapturing the headquarters via violent means by establishing his right of ownership of the Berlin headquarters. He did this simply by presenting his ownership proof to the courts after the holidays ended. The police were therefore obliged to retake the headquarters for him and Captain Walther Stennes’ attempted anti-Hitler coup fell apart. Interestingly, Stennes was never even an NSDAP member. .
• Hitler used Karl Lüger’s methods: utilize the existing implements of power.
• Thyssen admitted to funding the NSDAP. His continuous support and Hitler’s strategic alliance with Hugenberg and the Nationalist Party meant money for Hitler in 1929—none of which was from Sidney Warburg.
• After 1930, the Völkischer Beobachter
generated day-to-day revenue and paid off all of its outstanding debts.
• There was no “secret” funding early on. Max Amann mortgaged all of the NSDAP’s property and forestalled all financial obligations until after the elections in 1930, which surprised everyone, including Hitler. Rallies and occasional donations by the wealthy supplemented funds after September 1930.
• NSDAP memberships swelled due to the “bandwagon effect” after the party’s huge electoral success. The VB
also started generating substantial advertising revenue. At one point Hitler actually let his prohibitionist idealism go too far with the brewers and they canceled all their VB
ads. Fellow party members had to coax them back.
• Adolf Müller helped the Nazis with the VB
, the only paper that did not drop in circulation after the Depression began.
• The United States likely destroyed Party Treasurer Franz Schwarz’s records, which were meticulous: Hitler had even told him to denote names of anonymous donors! All of the records are gone. Americans brutally interrogated Schwarz and likely murdered him in 1946. The Anglo-Americans were determined to incriminate only German big business for funding the NSDAP at the IMT. Given that the United States did this, one suspects that there was more American-based funding than just Henry Ford and Teutonia behind the NSDAP, but what that was we will never know. The Anglos were likely trying to cover up American industrial involvement with NS-Germany after 1933, such as that of Standard Oil which we’ve already discussed.
• Generals, namely Alfred Jodl, were won over by Hitler at his Leipzig trial.
• Big business was reassured by Hitler’s total party control and non-Communist stance after he ordered his 107 deputies to vote against the Nazis’ own “left-wing” bill, introduced by Strasser et al.
• The German economy was controlled by the government and a private bank cartel 2,500 banks strong before Hitler assumed power.
• In the summer of 1931, the Ruhrlade made its first contribution to the NSDAP, and Göring was being paid by Thyssen at this time as well.
• Frau Quandt joined the NSDAP in 1930 and brought lots of wealthy influence with her.
• Hitler recalled Ernst Röhm in 1930 to lead the SA. He had been living in Bolivia.
• Kaiser Wilhelm and his sons supported the NSDAP in an effort to try and convince Hitler to reestablish the monarchy.
• Brüning was a de facto
dictator but was failing, because the Depression was worsening.
• The Credit-Anstalt, a Rothschild bank branch in Austria, experienced a devastating run in May 1931, which crashed all German banks and eventually even London’s banks. So much for the Rothschilds’ endless, untouchable wealth!
• Freemasonic France and America exacerbated the German collapse by recalling short-term loans to Germany and Austria and with the passing of the Hawley-Smoot tariff.
• The German People’s Party, which enjoyed more conservative support than Hitler, demanded constitutional revision terminating the parliamentary system and giving Hindenburg the power to appoint a government.
• Other nationalist parties got a lot more money and support than Hitler, but they maintained the status quo and displeased the masses immensely. Thus only Hitler had the masses’ support and could therefore not be brushed aside or ignored, not even by the moneyed elite.
• Big business, namely industrialists, was paying the NSDAP by 1931.
• The Harzburg Front organized and rallied in 1931. Hjalmar Schacht
gave a speech at this event and shockingly declared that the Weimar government was truly and utterly bankrupt.
He, more than anyone else that day, including Hitler, brought incalculable benefit to the NSDAP. He was after all the man who had saved the German economy before by introducing the Rentenmark.
• Hitler had his man Keppler meet informally with businessmen to create the NSDAP’s economic policy. This was known as the “Circle of Friends for the Economy.” This is actually where Reinhardt comes into play, the man behind the Reinhardt Plan which Hitler enacted shortly after coming to power. Reinhardt, not Hitler or an NSDAP member, openly called for rearmament in 1932.
• Walther Funk met with Kurt von Schröder, a partner in J. H. Stein of Cologne. A man with great skill for negotiation, Funk was able to “satisfy Schröder” of Hitler’s “good will” towards “international banking.”
• Mussolini gave unofficial support to the NSDAP. France backed the Bavarian separatists while Italy supported the Bavarian nationalists. Hitler was the only nationalist who opposed France and was willing to let Italy keep control of the South Tyrol (with a population of 250,000 Germans).
• Hitler received Italian fascist funding, which only came to light in 1932. Mussolini also sent the NSDAP weapons in the 1920s.
• The U.S.-based Teutonia gave Hitler regular donations.
• Montagu Norman was the governor of the Bank of England for 24 years. He was anti-France, disliked Jews immensely, was opposed to Versailles, and favored Germany due to his earlier studies there. Norman lent money to the NSDAP after 1933 via his personal friend Schacht. He may
have channeled funds via Baron Kurt von Schröder and J. H. Stein and Company in 1932, but this is not proven. Schröder was a German partner in J. H. Stein.
• Viscount Rothermere of the Daily Mail
gave Ernst Hanfstaengl money. He was a staunchly pro-German Anglo who despised Jews.
• It is crucial to understand that Anglo-Saxon foreign policy was designed to prevent any single power—whether France, Germany or Russia—from attaining formidable power enough to rival that of Britain. This was the real reason why King Edward VIII was forced to abdicate; he was simply too pro-German. His sympathy as well as that of Montagu Norman, the Mosleys, the Mitfords and Viscount Rothermere made Hitler miscalculate on Britain. He thought he had more Anglo-Saxon support than he really did.
• Deterding met Alfred Rosenberg in Britain and likely promised him funding. Deterding controlled oil interests in Romania, Russia, California, Trinidad, the Dutch Indies and Mexico. He also had pumps in Mesopotamia and Persia. The Soviets seized his oil fields in Baku, Grozny and Miakop and nationalized them, thereby becoming a serious competitor to Deterding with his own former oil lands.
• Georg Bell was Deterding’s contact agent with the NSDAP. Deterding did not just back the NSDAP, but also White Russians and Ukrainian nationalists, as well as anti-Soviet Georgian rebels.
• Deterding married a pro-National Socialist woman and moved to Germany. He was the one who gave the real ‘big money’ to the NSDAP in 1931, 1932, and 1933—£30 to £55 million. Dr. Kahr claimed that French money flowed to Hitler after going through nine exchanges, but this has not been proven. In fact, Bavarian parties like the BVP were backed by France only because they wished to break away from Berlin!
• The Treaty of Trianon was even worse and more unjust than Versailles. Hungary lost population and territory and was completely impoverished. This treaty soured most Hungarians on democracy. In 1919, Bela Kuhn ruled ruthlessly for three months in Hungary: he confiscated and expropriated private land, slaughtered peasants indiscriminately and further destroyed the economy, which resulted in famine. Hungarians were overwhelmingly anti-Communist, anti-Freemason and anti-Jewish after that. Most of these Communists, including Bela Kuhn, were Jewish Freemasons. This experience is what led the Hungarian nationalist Gyula (Julius) Gömbös to finance the NSDAP.
• Hitler aimed for “careers open to talent” according to Otto Dietrich, a policy opposed to hereditary power.
• Here is the explanation for one of Goebbels’s economic improvement references in his diary: Hitler’s Düsseldorf Industry Club speech of January 27. This fundraising event explains Goebbels’s entry of February 8.
• To give people some perspective on the German economy before Hitler: there were 17,500,000 unemployed Germans over the winter of 1931 to 1932. This was nearly one third of the entire population of Germany!
• Stennes’s rebellion is very important, but all too often overlooked. Stennes was a paid agent of Strasser and Captain Ehrhardt, both of whom had big business (industrialists) and one (Otto Wolff) Jewish backers.
• As a result of this rebellion and other street violence, the SA, SS and HJ were all banned by a Brüning decree signed by President Hindenburg. This was in 1932. So much for Rothschild and Warburg supporting Hitler! Why would they let their “pawn” get banned? This ban was an attempt to destroy the NSDAP and Hitler for good. Besides, if Hitler was really just a “tool” of a vast international entity as researchers like Jim Condit and Guido Preparata suggest, then why didn’t he win the presidency in 1932 ? What was this entity’s motive for forestalling his “power grab” if it was in fact behind him?
• Paul Silverberg, Jewish, financed Gregor Strasser, not Hitler. Silverberg was head of the R.A.G., one of the largest coal companies in the entire world. He supported the chancellor ruling by presidential decree (Brüning in particular).
• Brüning, not Hitler, asked the question: is democracy able to work in Germany?
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