Karl Helfferich
Encyclopedia
Karl Theodor Helfferich (22 July 1872 – 23 April 1924) was a German
politician
, economist
, and financier
from Neustadt an der Weinstraße
in the Palatinate.
, Berlin
, and Strasbourg
. He taught at the University of Berlin and later at the government school for colonial politics and oriental languages. In 1902 he entered upon a diplomatic career. He soon became a leader in the German government's policy of economic imperialism
, and in 1906 he was appointed director of the Anatolian Railway
which was financed by Deutsche Bank
. In 1908 he was made chairman of the directorship of the powerful Deutsche Bank
in Berlin.
At the close of the Balkan War
, Helfferich was the German financial delegate to the international conference (1913). He was Secretary for the Treasury from 1916 to 1917, and was said to be responsible for financing expenses for World War I
through loans instead of taxes. He counted upon a final German victory and upon imposing heavy indemnities upon the Allies. He also served as Vice-Chancellor for Chancellors Georg Michaelis
and Georg von Hertling.
After the Treaty of Brest-Litovsk
, Helfferich was sent to Moscow
as the German Ambassador to Russia, succeeding Wilhelm Mirbach
, who was assassinated. Elected to the Reichstag
of 1920, Helfferich led the conservative and monarchist right, known as the Deutsch-Nationalen, and strongly opposed reparations
and the economic fulfillment of the Versailles Treaty
. In particular, he directed his denunciations against the democratic Catholic leader Matthias Erzberger
with whom he had a celebrated lawsuit in 1920.
Helfferich was a prominent politician of the German National People's Party (DNVP) and gave radical anti-republican speeches against politicians who supported reparations fulfilment. In June 1920 he was selected as spokesman in the Reichstag for the parliamentary committee of inquiry into policies during the war, which he defended.
During the 1923 hyperinflation
, Helfferich developed a plan for a new rye currency, indexed to the price (in paper Marks) of rye and other agriculture products. His plan was rejected because of the extreme variability in the price of rye compared to other commodities, but many of his plan elements were incorporated in the successful RentenMark
that began circulation on 15 November 1923. At the end of 1923, when Helfferich applied for the post of Reichbank president, he was rejected in favor of Hjalmar Schacht
.
Helfferich was killed in a railway wreck near Bellinzona
, Switzerland
, on 23 April 1924.
His publications comprise chiefly economic and political studies.
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
politician
Politician
A politician, political leader, or political figure is an individual who is involved in influencing public policy and decision making...
, economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
, and financier
Financier
Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...
from Neustadt an der Weinstraße
Neustadt an der Weinstraße
Neustadt an der Weinstraße is a town located in Rhineland-Palatinate, Germany. With 53,892 inhabitants as of 2002, it is the largest town called Neustadt.-Etymology:...
in the Palatinate.
Biography
He studied law and political science at the universities of MunichLudwig Maximilians University of Munich
The Ludwig Maximilian University of Munich , commonly known as the University of Munich or LMU, is a university in Munich, Germany...
, Berlin
Humboldt University of Berlin
The Humboldt University of Berlin is Berlin's oldest university, founded in 1810 as the University of Berlin by the liberal Prussian educational reformer and linguist Wilhelm von Humboldt, whose university model has strongly influenced other European and Western universities...
, and Strasbourg
University of Strasbourg
The University of Strasbourg in Strasbourg, Alsace, France, is the largest university in France, with about 43,000 students and over 4,000 researchers....
. He taught at the University of Berlin and later at the government school for colonial politics and oriental languages. In 1902 he entered upon a diplomatic career. He soon became a leader in the German government's policy of economic imperialism
Economic imperialism
Economic imperialism in contemporary economics refers to economic analysis of seemingly non-economic aspects of life, such as crime, law, the family, prejudice, tastes, irrational behavior, politics, sociology,culture, religion, war, and science and research.Its emergence has been attributed...
, and in 1906 he was appointed director of the Anatolian Railway
Baghdad Railway
The Baghdad Railway , was built from 1903 to 1940 to connect Berlin with the Ottoman Empire city of Baghdad with a line through modern-day Turkey, Syria, and Iraq....
which was financed by Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
. In 1908 he was made chairman of the directorship of the powerful Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
in Berlin.
At the close of the Balkan War
Balkan Wars
The Balkan Wars were two conflicts that took place in the Balkans in south-eastern Europe in 1912 and 1913.By the early 20th century, Montenegro, Bulgaria, Greece and Serbia, the countries of the Balkan League, had achieved their independence from the Ottoman Empire, but large parts of their ethnic...
, Helfferich was the German financial delegate to the international conference (1913). He was Secretary for the Treasury from 1916 to 1917, and was said to be responsible for financing expenses for World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
through loans instead of taxes. He counted upon a final German victory and upon imposing heavy indemnities upon the Allies. He also served as Vice-Chancellor for Chancellors Georg Michaelis
Georg Michaelis
Georg Michaelis became the first Chancellor of Germany with a non-noble background.-Biography :Michaelis, born in Haynau in the Prussian Province of Silesia, grew up in Frankfurt...
and Georg von Hertling.
After the Treaty of Brest-Litovsk
Treaty of Brest-Litovsk
The Treaty of Brest-Litovsk was a peace treaty signed on March 3, 1918, mediated by South African Andrik Fuller, at Brest-Litovsk between Russia and the Central Powers, headed by Germany, marking Russia's exit from World War I.While the treaty was practically obsolete before the end of the year,...
, Helfferich was sent to Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
as the German Ambassador to Russia, succeeding Wilhelm Mirbach
Wilhelm Mirbach
Wilhelm Graf von Mirbach-Harff was a German diplomat.- Biography :Mirbach was born in Bad Ischl in Upper Austria. He participated in the Russian-German negotiations in Brest-Litovsk from December 1917 to March 1918...
, who was assassinated. Elected to the Reichstag
Reichstag (Weimar Republic)
The Reichstag was the parliament of Weimar Republic .German constitution commentators consider only the Reichstag and now the Bundestag the German parliament. Another organ deals with legislation too: in 1867-1918 the Bundesrat, in 1919–1933 the Reichsrat and from 1949 on the Bundesrat...
of 1920, Helfferich led the conservative and monarchist right, known as the Deutsch-Nationalen, and strongly opposed reparations
World War I reparations
World War I reparations refers to the payments and transfers of property and equipment that Germany was forced to make under the Treaty of Versailles following its defeat during World War I...
and the economic fulfillment of the Versailles Treaty
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...
. In particular, he directed his denunciations against the democratic Catholic leader Matthias Erzberger
Matthias Erzberger
Matthias Erzberger was a German politician. Prominent in the Centre Party, he spoke out against the First World War from 1917 and eventually signed the Armistice with Germany for the German Empire...
with whom he had a celebrated lawsuit in 1920.
Helfferich was a prominent politician of the German National People's Party (DNVP) and gave radical anti-republican speeches against politicians who supported reparations fulfilment. In June 1920 he was selected as spokesman in the Reichstag for the parliamentary committee of inquiry into policies during the war, which he defended.
During the 1923 hyperinflation
Inflation in the Weimar Republic
The hyperinflation in the Weimar Republic was a three year period of hyperinflation in Germany between June 1921 and July 1924.- Analysis :...
, Helfferich developed a plan for a new rye currency, indexed to the price (in paper Marks) of rye and other agriculture products. His plan was rejected because of the extreme variability in the price of rye compared to other commodities, but many of his plan elements were incorporated in the successful RentenMark
German rentenmark
The Rentenmark was a currency issued on 15 November 1923 to stop the hyperinflation of 1922 and 1923 in Germany. It was subdivided into 100 Rentenpfennig.-History:...
that began circulation on 15 November 1923. At the end of 1923, when Helfferich applied for the post of Reichbank president, he was rejected in favor of Hjalmar Schacht
Hjalmar Schacht
Dr. Hjalmar Horace Greeley Schacht was a German economist, banker, liberal politician, and co-founder of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank under the Weimar Republic...
.
Helfferich was killed in a railway wreck near Bellinzona
Bellinzona
Bellinzona is the administrative capital of the canton Ticino in Switzerland. The city is famous for its three castles that have been UNESCO World Heritage Sites since 2000....
, Switzerland
Switzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, on 23 April 1924.
His publications comprise chiefly economic and political studies.
Publications by Helfferich
- The Reform of German Finance, 1897
- Studies on Money and Banking, 1900
- Money, 1903
- Germany's National Wealth 1888-1913, (Deutschlands Wohlstand, 1888-1913) 1915
- Speeches and Essays from the War, 1917
- Do Away with Erzberger!, Verlag Scherl, Berlin, 1919, letters to the editor, the Berlin newspaper "Tag"
- The World War, (Der Weltkrieg) (3 vols.) published 1919 by Ullstein Berlin
Further reading
.- New International EncyclopediaNew International EncyclopediaThe New International Encyclopedia was an American encyclopedia first published in 1902 by Dodd, Mead and Company. It descended from the International Cyclopaedia and was updated in 1906, 1914 and 1926.-History:...