"The Reichsbank gold is not dead, as Mr. Hilferding and Mr. Bernhard claimed, it is rather the foundation of the bank. It was only in its gold reserve that the strength of the Reichsbank rested, and if the gold were taken from it, it was just as if Samson's curls were cut off. The policy recommended by Hilferding and Bernhard is therefore a Delilah policy, a heroism. Only with its gold is the Reichsbank creditworthy and can work for the German economy. If some of its gold were to be taken from it for this purpose, the direct consequence of this action would be a rapid further fall in the market. So it would be exactly the opposite of what Hilferding expects. The Reichsbank, as he had repeatedly stated, was not allowed to take out a loan which would jeopardize its gold holdings; because this is the only reserve for the re-establishment of the currency, which must come one day. Intervention by the Reichsbank, however, was misguided as long as there was no prospect that the mark would really and permanently be stabilized by such an action."

Cabinet meeting 24 October 1922, files of the Reich Chancellery. Weimar Republic

(Source: Federal Archives, Bundesarchiv)

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