Part 2 Chapter 20 Wizard Summary and Analysis

In 1933 Adolph Hitler becomes chancellor in Germany. Dr. Hialmar Schacht, who represents Germany at the Paris conference where the Young Plan was adopted, resigns from the Reichsbank as a protest against the terms of the Young Plan. He becomes a Nazi supporter, giving legitimacy to the National Socialists. He is active in raising funds for Hitler. Hitler has Schacht reinstated at the Reichsbank and makes him the minister of economics. Schacht is the financial wizard of Nazi Germany.

The House of Morgan is not alarmed at Hitler's election or at Schacht's position in the new regime. In June, Schacht declares a moratorium on the war debt. Schacht tries to deal with countries which have trade surpluses so they will buy more German goods. His plan is to force down the price of the German bonds so he...