Third Reich Day by Day: August 1937
Germany and Italy had not always been close allies; indeed, during the early 1930s Mussolini had moved troops up to the Austrian border to deter Hitler from influencing events in Austria. However, Hitler had supported Mussolini’s war in Ethiopia and both dictators found themselves supporting the anti-communist cause in Spain. It was, therefore, perhaps logistical that they should ultimately become allies. That process was cemented by the Duce’s historic trip to Germany in 1937, when the Nazis pulled out all the stops to win over Italy’s leader.
Hjalmar Schacht resigns as Minister of Economics. Though he had stated that he would support Hitler and the Third Reich as long as he had breath in his body, he has become disillusioned by the regime’s anti-Semitism and also the Night of the Long Knives. He has played an important part if Germany’s rearmament programme, but has found it difficult to battle inflation. After reading Mein Kampf he decided that Hitler was a genius who could restore Germany’s greatness. Walther Funk replaces him.