The Hugenberg Memorandum

The infamous ‘Hugenberg Memorandum’, presented by nationalist politician Alfred Hugenberg at the 1933 World Economic Conference, London

The untitled document below, commonly known as the ‘Hugenberg Memorandum’, was first disseminated by German-National politician Alfred Hugenberg on 16 June, 1933, at the World Economic Conference in London. Hugenberg, with his solidly middle-class Prussian background, his massive media empire, and his web of financial ties to German heavy industry, might seem an unlikely candidate for inclusion on this blog. As an old Pan-German and a leading figure within the bourgeois-nationalist German National People’s Party (DNVP), Hugenberg was typically viewed by communists, socialists, and national-revolutionaries alike as an ossified, backwards-looking reactionary. Yet despite his stolid conservatism, Hugenberg in many respects still represented a particularly radical tendency in German economic thought. Like many Pan-Germans, Hugenberg was an advocate of autarchy as a solution to Germany’s economic woes, promoting vigorous protectionism for German produce, a strict quota system on agricultural imports, wide-ranging debt relief for farmers, and a gigantic expansion of domestic markets by retaking Germany’s African colonies and by ‘clearing’ Slavic land to the east for ‘settlement’. Through Franz von Papen’s influence, Hugenberg in 1933 had been awarded multiple influential positions within the new Hitler Government, finally affording him the opportunity to fulfill his dream as Germany’s “savior from economic misery.” It was for this reason that he insisted on presenting the below memorandum on his personal economic vision to the Economic Conference, despite horrified protestations from other members of the German delegation. The result was disastrous. The Hitler Government at the time was still only months old, and was desperately trying to present a picture of moderation and conciliation to other nations, who viewed the still poorly-armed ‘New Germany’ with deep suspicion. Hugenberg’s memorandum criticizing foreign investment and claiming that the world’s recovery from the Great Depression could only come about through Germany being granted colonial territories in Africa and a free hand to seize land to the east was deeply embarrassing to the government, who were forced to declare that Hugenberg’s statements did not represent official policy. Hugenberg, alienated among his colleagues and with his political reputation in tatters, was left with little choice but to resign from the Hitler cabinet, and by the end of the month the DNVP too ended up being pressured to dissolve itself and to merge into the NSDAP. The text of Hugenberg’s memorandum is reproduced in full below, in part because it represents an excellent example of the radical economic worldview embodied in Pan-German ideology, and in part because of its historical value: histories of the Third Reich and the DNVP commonly reference the document, but very rarely provide substantial quotes from it to inform their readers, much less reproduce it in full. 

The ‘Hugenberg Memorandum’
Alfred Hugenberg,
Reichsminister for Economics, Reichsminister for Food and Agriculture
DNVP_symbol

LONDON, June 14, 1933

In my homeland the Westphalians and the Frisians are considered to be among the tribes which are least diplomatic and most rustic, blunt, and stubborn. I am a cross between these two tribes. You must therefore have the great kindness to overlook it as a hereditary fault of mind if you do not like everything I say.

Given the situation in which my country finds itself it is impossible for me to try to skip lightly over the gulf of deep problems which are agitating not only us Germans but to an increasing extent the entire Western world, including America. The philosopher1 who entitled a well-known book Decline of the West thereby pointed prophetically to a danger which appears as a dark storm cloud on the horizon of the world. The government of the country in which this book was written many years ago is today, under the leadership of Reichschancellor Adolf Hitler, fighting the battle against this decline of the West. The esteemed President of this Conference, Mr. MacDonald,2 has described this danger in other words but with all desirable clarity as follows: “The world is drifting toward a state in which life revolts against hardship and the gains of the past are swept away by forces of despair.”3 In the sense of this struggle there is a family of nations. Those that belong to it are basically permeated with this feeling: We do not want to lose the courage and the spirit of our forefathers; nor do we want to let ourselves be exterminated by the subhumanity [Untermenschentum] growing up in our own nations.  Continue reading

The Christian Socialist Ahlen Program

“The capitalist economic system has failed…” The 1947 ‘Ahlen Program’ of the center-right Christian Democratic Union

CDU_GemeinwirtschaftThe collapse of the ‘Hitler-regime’ and Germany’s total defeat over the course of the War led many Germans to seek a clean break with the past. The ‘fresh start’ which they longed for was not just conceptualized in terms of a rejection of National Socialism and militarism, but also in terms of a desire to cast aside the capitalist economic system, to use the opportunity offered by the need to rebuild a shattered nation to construct a new economic system which would be eminently fairer and less prone to cronyism and abuse. This sentiment was not just confined to those on the Left; the conservative movement (particularly those formerly associated with the Catholic Zentrum) had a long history of Christian Socialism in their ranks, and these ideas came to the fore once more during the harsh winters and troubled economic times which immediately followed the end of the War. The Christian Democratic Union (CDU) had been founded in June 1945 as a catch-all movement for moderate conservatives and Christians of all denominations, and Christian Socialism became particularly popular among CDU members within the British Zone of occupation, an area which encompassed the Ruhr Valley, Germany’s industrial heartland. On 3 February, 1947, CDU members within the British Zone formalized the party’s commitment to Christian Socialist principles (while diplomatically choosing to avoid direct use of the term) by adopting the famous ‘Ahlen Program’, translated below. The Ahlen Program, which openly calls for the socialization of certain industries, the democratization of workplaces, and the forced break-up of companies above a certain size, was largely the work of local CDU leaders Johannes Albers and Konrad Adenauer. Adenauer would turn out to be more economically conservative than other members of the North-Rhine Westphalia branch, which explains why he later took both the CDU and Germany (as Chancellor) in a direction which ended up casting aside many of the more radical socialist ideals set out in this early founding document. 

The Ahlen Program
CDU Zone Committee for the British Zone, Ahlen / Westphalia,
3rd February 1947CDU

The CDU Zone Committee for the British Occupation Zone issued the following programmatic declaration at its conference of 1-3 February, 1947, in Ahlen:

The capitalist economic system has failed to do justice to the vital state and social interests of the German people. After the terrible political, economic, and social collapse which resulted from criminal power politics, only a new order built from the ground up can follow.

The content and goal of this new social and economic order can no longer be the capitalist pursuit of profit and power, but instead must be only the welfare of our people. A cooperative economic order should provide the German people with an economic and social constitution which accords with the rights and dignity of man, which serves the spiritual and material development of our people, and which secures peace both at home and abroad.

In recognition of this, the CDU party program of March 1946 sets forth the following principles:

The Goal of All Economic Activity is to Satisfy the Needs of the People

The economy has to serve the development of the creative forces of the people and the community. The starting-point for all economic activity is the recognition of the individual. Personal freedom in the economic sphere is closely linked to freedom in the political sphere. The shaping and management of the economy must not deprive the individual of his freedom. Therefore, it is necessary to: Continue reading

Basic Features of the National Socialist Economic System

Cambridge economist C.W. Guillebaud’s 1939 analysis of the essential features of Hitlerian economic ideology

NSDAP - Hitler-BewegungObjective analysis of National Socialism is virtually impossible nowadays. The enduring hangover of the War, the popular use of ‘Nazi’ as a pejorative divorced from its original ideological meaning, the adoption of Hitler’s image and ideas as an easy shorthand for Ultimate Evil – these have all combined to ensure that peoples’ responses to the subject are inherently emotive, and that academics who do attempt a dispassionate assessment risk suffering the potentially career-ending accusation of “sympathy”. This is not a new phenomenon; a contemporary Canadian review of the 1939 book The Economic Recovery of Germany noted that its author, Cambridge University economics lecturer C.W. Guillebaud, had recently been accused by another reviewer of being an apologist for German policies over his book’s tone of unbiased critique. But the accusation did not spell doom for Guillebaud’s public image, as it would do now. In the same year as his book’s publication Guillebaud became a government advisor on economics issues, beginning a distinguished career in the public service which included many years on the Council of the Royal Economic Society and a seat on numerous industrial dispute tribunals and wage arbitration committees, where he came to develop a reputation as a pro-labour maverick. Guillebaud’s interest in industrial relations is probably what prompted his study of the economic system in Hitler’s Germany, rather than any covert sympathy for ‘Nazism’; his other works suggest a strong interest in social policy and modern forms of industrial arbitration, both areas in which NS Germany was experimenting with new, progressive models. The chapter from Guillebaud’s book which I have excerpted below is typical of his fair, balanced approach. It describes in detail the basic features of the economic system in Germany at the time, outlining its core ideological principles as well as its strengths and weaknesses, and does so in a manner which is remarkably impartial in comparison with writing on the same subject produced by authors today. The excerpted chapter is one of the best and most concise descriptions of Hitlerian economic policy during the 1933-39 period I have come across, and the fact the author does not feel the need to browbeat the reader with the Germans’ moral shortcomings every other sentence is remarkably refreshing. 

Some Basic Features
of the National Socialist Economic System
Chapter V of  ‘The Economic Recovery of Germany’
by C.W. Guillebaud

Reichsadler

This chapter is an attempt to sum up in a few words what would appear to be the salient characteristics of the German economic system as it took shape during the years 1933 to March 1938.

State Control Over Investment, the Money Market, the Rate of Interest, and the Foreign Exchanges

By the establishment of a rigid and highly effective control over the foreign exchanges the German economy has in a large measure, though by no means completely, been rendered independent of fluctuations in the outside world. Under these conditions external changes could alter the total volume of Germany’s foreign trade, but could not cause wide divergences to occur between the value of imports and exports taken as a whole.

Down to the end of 1937 it was in fact possible to preserve a favourable balance of trade and to redeem a considerable part of the foreign debt whose existence has been, and still is, so great a handicap to Germany’s freedom of movement in her commercial relations with foreign countries. As a further result of foreign exchange control the internal monetary and price structure has been divorced from world price movements and from the influence of gold. The export of capital also can be effectively held in check.1

Inside Germany the monetary system has been based on the general principle that the effective volume of money and credit in circulation should keep pace with the growth of production and the output of goods and services. Continue reading

Nation and Working-Class

Only proletarian revolution opens the way to nationhood: an early national-bolshevist pamphlet by Hamburg radicals Heinrich Laufenberg & Fritz Wolffheim

Berlin_Rally_1918“National Bolshevism” has always been a fairly amorphous term. This is even more so the case today, where its relegation to meme status seems to have reduced it to a kind of aesthetic joke. Even in Germany, where the concept first originated, its meaning was never entirely fixed, never applied to one consistent worldview. Originally coined to describe the ideas of Jewish-German conservative-nationalist Paul Eltzbacher, who saw a Soviet system as Germany’s only means of national salvation following its defeat in WWI (Eltzbacher subsequently became a communist), the term was later used to describe several minor heretical movements on both the Left and the Right, deviations from Germany’s mainstream Marxist or nationalist currents which embraced certain elements of their respective enemies’ ideological worldviews. The earliest of these groups was the Hamburg branch of the Communist Workers’ Party of Germany (KAPD), organized by prominent local radicals Fritz Wolffheim and Heinrich Laufenberg after their expulsion from the Communist Party over their anti-parliamentary, pro-syndicalist tendencies. Wolffheim and Laufenberg took the Hamburg KAPD in a national-communist direction, violently attacking social-democrats for betraying Germany and its proletariat through the Treaty of Versailles, and advocating instead of a civil war against the bourgeoisie a temporary alliance with them against the Western Powers as a precursor to the defeat and absorption of the middle-classes and the creation of a pan-German proletarian republic. Laufenberg and Wolffheim drew on German history and the example of the French Revolution to support their views; the 1920 pamphlet Nation und Arbeiterklasse, translated below, is a typical example. It is a curious mixture of radical left-wing Marxism and aggrieved nationalist sentiment, surveying the question of German nationhood from the perspective that Germany’s history of feudalism and imperialism left its bourgeois state and class underdeveloped, necessitating working with elements of the bourgeoisie so the broken Weimar system could be overthrown and a true German nation and state established in its place. Because the full text of the pamphlet is rather long, I have also made it available for download as a PDF via the Internet Archive for those who prefer that format. 

Nation and Working-Class
Heinrich Laufenberg & Fritz Wolffheim
July, 1920

hamsic

I.

Communism is the doctrine of the class struggle of the proletariat within capitalist society. Its goal is the destruction of the capitalist world-system and its replacement by the Commune of the world-economy.

Its struggle and mission are international. The very existence of the bourgeoisie and proletariat is determined by the capitalist mode of production. The struggle between bourgeoisie and proletariat moves through nations, tearing them apart with the antagonisms between the classes in enemy camps. But as both classes can only exist so long as capitalist society lasts, at the end of their struggle class-antagonisms in every country will be abolished by the victorious proletariat. By smashing the capitalist form of economy and eradicating the capitalist class-society and wage system, the proletariat abolishes the bourgeoisie and, at the same time, itself as a non-propertied class. In doing so, it deprives class-divisions within nations of their foundations. Communist society sets all working members of a people [Volk] alongside one another, free and equal. It arises out of the socialized labor of a classless people, and comes to completion through the federalist integration of the economy of the classless peoples in the World Commune.

The revolutionary struggle of the proletariat, mobilized within the embrace of the bourgeois nations, picks up the revolutionary tendencies extant when it first begins. Where bourgeois society is itself still struggling with feudal forces over the “political structure”, the proletariat fights in the foremost battle-lines of the bourgeoisie as the most energetic stratum driving the Revolution forward. After the bourgeoisie triumphs over the feudal world, the proletariat intervenes in the revolutionary struggles which unleash the emerging, reinvigorated groups of the bourgeois class to participate in the power of the state, and while also supporting the bourgeois wings of the revolution in these upheavals, it at the same time campaigns for the implementation of its own class goals in order to broaden its own revolutionary basis of struggle against the entire bourgeois class. It is precisely the course of the bourgeois revolutions which furnishes visible evidence that the bourgeois struggle for emancipation is unfurling the problems of humanity’s liberation, but that it is necessary to overcome bourgeois society itself in order to resolve these problems. All of these problems therefore fall automatically within the ambit of proletarian struggle. The most important of them, in which all others intersect as a focal point, is the organization of the nation. For the political manifestation of bourgeois society is the bourgeois state, which attempts to organize the nation as its given basis. And as this organization has had so little success at resolving all the other problems of humanity posed by bourgeois society, but the proletariat must, in order to carry out its own emancipation, conquer and shatter the bourgeois state, then in this case too it is forced to take up the unsolved problem at precisely the point where the Bourgeois Revolution left it. Continue reading