Page 85 - The Making of the German Post-war Economy

58 THE MAKING OF THE GERMAN POST-WAR ECONOMY

authorities tolerated Erhard’s behaviour and approved the Leitsätze-Gesetz
on 30 June 1948.
One of the main principles of Ludwig Erhard’s liberal economic policy
was a financial reorganisation. Without a reform of the German currency,
the successful integration of the Bizone into the European Recovery
Programme (ERP) was challenged. Furthermore, it was essential to
remove a domestic inflationary glut of money of estimated 300 billion
Reichsmark (RM); at the same time there was a scarcity of food and goods.
German officials and Allies alike agreed that a new currency should
replace the then barter trade and cigarette valuta. However, in view of
incalculable economic, financial and political consequences, mainly the
American authorities took charge of a necessary currency reform. The
German experts, who initially believed to be able to contribute their own
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approach, were merely given the subordinate task of drafting the laws
and regulations. Thus, they insisted on a public Allied proclamation stating
that the three occupying powers carry sole responsibility for the currency
reform. Eventually, the Chairman of the Executive Committee,
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Hermann Pünder, and the president of the Economic Council, Erich
Köhler (CDU), publicly announced the currency reform on 18/19 June
1948. By this first concrete step of the Social Market Economy,
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Erhard’s socio-economic programme became concrete and noticeable to
everyone. Indeed, like other important messages at the time, the monetary
reform was proclaimed via radio transmission commenced by a well-
known signature tune that guaranteed a big audience, however, just the
implementation of the tangible concept itself which Ludwig Erhard
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considered to be very popular was simultaneously the most effective
form of communication. In equal measure, Erhard justified his action to
both the general public and the parliament. Furthermore, in front of
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an auditorium of more than 3,000 people in Frankfurt on 14 November
1948, Erhard defended his economic concept in a public debate with the
Minister for Economic Affairs of North Rhine-Westphalia, Erik Nölting
(SPD).
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Indeed, Erhard proved himself in the pre-parliamentary as well as in the
parliamentary arena. Now, Adenauer invited him to present his concept to
the Zonenausschuss, namely the executive committee of the CDU in the
British zone of occupation, in Königswinter on 24 February 1949.
Although Adenauer introduced him as a liberal democrat, Erhard
commenced his speech with a clear commitment to the CDU and offered
his services: ‘for my part, you can deploy me in your campaign twice or
three times a day. [...] Then we will not only win the elections, and thus
make the history of Germany, but shape the vision of Europe.’ Overall,
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Erhard not only aimed to mediate between an academic, political and