Unlike in 1934, when even the Reichsbank’s confidential memoranda had steered clear of any mention of rearmament, the connection was now too obvious to be ignored. Perhaps the most comprehensive of these papers was compiled by three Reichsbank department heads under the title ‘The German Currency in Case of a Devaluation of the Goldbloc’.58 It was far from optimistic. The consequences for Germany of a French devaluation would certainly be serious. But determining the appropriate response raised fundamental
