The Tribunal finds that Funk is not guilty on Count One but is guilty under Counts Two, Three, and Four.


Schacht is indicted under Counts One and Two of the Indictment. Schacht served as Commissioner of Currency and President of the Reichsbank from 1923 to 1930, was reappointed President of the Bank on 17 March 1933, Minister of Economics in August 1934, and Plenipotentiary General for War Economy in May 1935. He resigned from these two positions in November 1937, and was appointed Minister without Portfolio. He was reappointed as President of the Reichsbank for a 1-year term on 16 March 1937, and for a 4-year term on 9 March 1938, but was dismissed on 20 January 1939. He was dismissed as Minister without Portfolio on 22 January 1942.

Crimes against Peace

Shacht was an active supporter of the Nazi Party before its accession to power on 30 January 1922, and supported the appointment of Hitler to the post of Chancellor. After that date he played an important role in the vigorous rearmament program which was adopted, using the facilities of the Reichsbank to the fullest extent in the German rearmament effort. The Reichsbank, in its traditional capacity as financial agent for the German Government, floated long-term Government loans, the proceeds of which were used for rearmament. He devised a system under which 5-year notes, known as Mefo bills, guaranteed by the Reichsbank and backed, in effect, by nothing more than its position as a bank of issue, were used to obtain large sums for rearmament from the short-term money market. As Minister of Economics and as Plenipotentiary General for War Economy be was active in organizing the German economy for war. He made detailed plans for industrial mobilization and the coordination of the Army with industry in the event of war. He was particularly concerned with shortages of raw materials and started a scheme of stock-piling, and a system of exchange control designed to prevent Germany's weak foreign exchange position from hindering the acquisition abroad of raw materials needed for rearmament. On 3 May 1935 he sent a memorandum to Hitler stating that "the accomplishment of the armament program with speed and in quantity is the problem of German politics, that everything else therefore should be subordinated to this purpose."

Schacht, by April 1936, began to lose his influence as the central figure in the German rearmament effort when Göring was appointed Coordinator for Raw Materials and Foreign Exchange. Göring advocated a greatly expanded program for the production of synthetic raw materials which was opposed by Schacht on the ground that