Switzerland and Gold Transactions in the Second World War

Interim Report on Gold
18
Introduction
recently research has generally centered on central banks’ gold policies, and there has been
scant research on how gold from ghettos, concentration camps, and extermination camps was
stolen and disposed of.
The issue of how much decision-makers knew of German atrocities during the war has recently
attracted considerable attention. The argument that decision-makers at the SNB simply trusted
the Nazis, were unaware of the origins of German gold and acted in good faith has been
refuted. Nevertheless, there has not yet been a study examining the motivations and mentality
of top SNB decision-makers. Such a study might explain why these bankers did not have a
clear idea of the nature of their involvement. Did they not want to know? What information did
they resist knowing? Since they had received conflicting information, whom did they believe?
Why did the SNB Governing Board have such a close and friendly relationship with a dubious
figure like Emil Puhl, Vice-President of the Reichsbank? We believe these are central issues,
but can only provide partial answers in this interim report.
It is important to remember that gold operations in Switzerland took place in a broad
international context, and there was a complex interplay between long-term developments and
solitary events. The emergence of Switzerland as a financial center began in the second half of
the 19th century, and the process of economic evolution continues to this day. Nazi looting
was clearly confined to a limited time period. Gold played a role in both of these very different
developments. As territorial expansion was a key aspect of German policy, gold became an
increasingly important raw material with military applications, as a 1937 German study
indicated. 45
For Switzerland, gold trading was not of great economic significance before World War II.
Nevertheless, Switzerland’s powerful capital market, driven by the Swiss franc, a strong
currency backed by substantial gold cover, was of special importance within Europe and gave
Swiss banks a distinct advantage. With this in mind, we need to determine how and to what
extent Switzerland became a supplier of foreign currency for Germany, a hub for Reichsbank
gold transactions, and thus a support for Germany’s war economy after 1941.
To tackle this issue properly, we need to look at the provenance and uses of gold. In Chapter 1
of this study we set forth the results of research in tables which indicate gold reserve levels and
in/outflow volumes for Germany and Switzerland. We have also defined and analyzed certain
terms relevant to the subsequent discussion. We focus on the Reichsbank, its role within the
Nazi system, and the question of victim gold. We also distinguish between several categories
of gold that Germany placed on the international market. 46
45
46
Eyssen 1937, p. 1170.
As we said at the beginning, we presented parts of this chapter at the London Gold Conference held on 2 to 4
December, 1997.