Adolf Hitler in Munich in 1923. Photograph: Hulton Archive/Getty Images.
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Early recollections of Adolf Hitler: “Eccentric but quite a pleasant fellow”

In a profile from the New Statesman archive, literary scholar and social critic William Walter Crotch remembers his days in Munich, and the "militant edition of charlie chaplin" he encountered on the streets and in the local bierkeller.

This profile by the literary scholar and social critic William Walter Crotch (1874-1947) was first published in the NS of 29 July 1933. Hitler had become chancellor in January.

The first time I heard the name of Adolf Hitler mentioned was shortly after the end of the war, when a man named Franz Xavier Huber, a veteran who had a leg shot away before Verdun in 1917, told me the stories of a curious fellow who had been in his regiment at the front. He was a garrulous chap, and, sitting in that same Bürgerbraü Keller in Munich (where in 1923 Hitler took his first plunge into revolutionary activities by firing off his army revolver at the ceiling and declaring the morrow would see him victor or dead although it saw him neither the one nor the other, but unscathed, a helter-skelter fugitive in the Bavarian hills), he used to tell tales tragic and humorous of his campaign experiences.

The thing that had struck him about “Private Hitler” was his grandiloquence. He was neither popular nor the reverse with his fellows; they just smiled at him and his vague rambling speeches on everything in the world and out of it. He acquired the reputation of being what in the British Army is called “an old soldier”. That is, he showed distinct talent in avoiding disagreeable tasks, but he knew on which side his bread was buttered. He interested himself particularly in the important question of seeing the officer’s washing was done or doing it himself. This secured for him the good graces of the colonel, who removed him from the more constant dangers of the trenches and appointed him runner between regimental headquarters and the front line.

These duties brought him frequently in contact with the men and he would sit for hours in a dug-out and hold forth on Socialism, of which it was evident he had only very hazy notions. Old Social Democrats used to laugh at him, but no one debated seriously with him. He could not brook contradiction and used to fly into terrible rages if anyone ventured a word of dissent. Though he got the Iron Cross of the second class, no one in the regiment ever looked upon Hitler as any sort of a hero; indeed they rather admired him for the skill with which he avoided hot corners. The regimental records contain not a line concerning an award of the Iron Cross of the first class to Hitler, though in latter years he has taken to wearing it prominently on his self-constructed uniform.

In those days in Munich I lived in the Thiersh Strasse, and I frequently noticed in the street a man who vaguely reminded me of a militant edition of Charles Chaplin, owing to his characteristic moustache and his bouncing way of walking. He always carried a riding whip in his hand with which he used incessantly to chop off imaginary heads as he walked. He was so funny that I inquired from neighbours who he might be: most of them, owing to his Slav type, took him to be one of these Russian émigrés who abounded in Germany at that time, and they freely talked of his being probably a trifle mentally deranged. But my grocer told me it was a Herr Adolf Hitler from Braunau in Austria, and that he was leader of a tiny political group which called itself the “German National Socialist Workers Party”. He lived as a boarder in the apartment of a small artisan, wrote articles for an obscure paper called the Völkischer Beobachter, and orated in hole-and-corner meetings before audiences of a dozen or two. Out of curiosity I bought the paper once or twice, and found it a scatter-brained collection of wild anti-Jewish stories and articles interlarded with panegyrics on the Germanic race. My obliging grocer closed his information on Hitler by remarking that he frequently purchased things in his shop and was, despite his eccentric appearance, quite a pleasant fellow, though inclined to talk sixteen to the dozen about anything and everything.

Some time later I became a frequent customer of a little wine saloon in the Schelling Strasse. The public in this inn was mostly composed of Bohemians, artists and art students, members of the staff of Simplicissimus, the satirical weekly; musicians and poetasters sat around of an evening and listened to Gulbransson or Thöny giving forth on art, politics and the price of a pound of meat. Discussions lasted far into the night, over tankards of beer and bottles of an excellent Chianti. Hitler was an almost daily visitor; he had, I learned, been a house painter in his early days in Vienna, but he was rather sore on the subject, and posed as an artist. He was very fond of airing his views on art and architecture, which, however, were not taken seriously by any of the artists who frequented the place.

Hitler was often accompanied by one or two friends who, I was told, were members of his little political group. The most sensible of the band was a chemist named Gregor Strasser, a very sound fellow with whom I often spoke. Hitler’s closest friend at that time, however, seemed to be an ex-army captain named Roehm, who later became chief of the Storm Troops, while his friend, Baldur von Schirach, was entrusted with leadership of the “Hitler Youth”, the boy scout organisation of the National Socialist movement.

One thing that struck me about Hitler was his extreme abstemiousness. He ate every night a dish of vegetables, and mineral water was his only drink. He never smoked. This reminds me of an amusing incident when Hitler became Chancellor. The German vegetarians have a central organ of their league, and this paper came out with flaming headlines:

FIRST GREAT VICTORY OF GERMAN VEGETARIANS. HITLER BECOMES CHANCELLOR.

Sometimes instead of regaling us with chaotic speeches, Hitler would sit for hours on end in front of his mineral water, staring into space, not uttering a word, and apparently quite oblivious of his surroundings. If on these occasions someone suddenly addressed him, he would start as if out of sleep, and stroke his forehead with his hand several times before coming back to reality.

Apart from politics and art, Hitler’s chief topics of conversation were Italy and clairvoyance. He had never visited Italy, but had apparently read a great deal about it, and he would sometimes talk for half an hour on end about the glories of ancient Rome and the greatness of the Caesars. There was something about his talk that made one think of the prophets of the Old Testament: he spoke as if he believed himself to be inspired. The only thing that dispelled the illusion was his frequent use of words that are not found in the dictionary of a cultivated German.

One day I remember a man came in who, for the price of a plate of soup, read hands and told fortunes. Hitler retired with the soothsayer into a corner and spent a whole hour with him in earnest conference. When he got back among us, he turned with anger upon a student who had made a slighting remark about clairvoyance, and launched out upon an eloquent defence of occultism of every kind, and especially of astrology.

He made a confidant, too, of a Jewish charlatan named Steinschneider who had taken to himself the name of Hanussen, and consulted him frequently. Hanussen, who subsequently founded and ran a weekly newspaper on astrology, devoted to indirect propaganda for Hitler, became for a few weeks after Hitler’s accession to power almost as important a factor in Germany as Rasputin had been in Russia. But his end was a tragic one. He was found murdered in a field in the environs of Berlin. Accounts vary regarding his death. However, the incident does not appear to have shaken Hitler’s faith in astrology, and one of Hanussen’s chief rivals, a man named Mücke, has been appointed by Hitler “Federal Commissary for Occultism”. This, I believe, is the first time in modern ages that a state has officially recognised soothsaying and turned it into a government department.

But there is one extraordinary feature about Hitler’s faith in the occult which gives rise to intriguing speculation. As everyone knows, he has adopted the Swastika as the emblem not only of his party but of the State. But curiously enough this Swastika is reversed, and anyone acquainted with Eastern beliefs knows that this is to be regarded with positive horror. An inverted Swastika is indicative not of endless life but of the flood and flame of life leading to a violent destruction. Did Hitler know this when he foisted it upon the German nation? Is the reversed Swastika just another sign of the man’s half-baked conception of things? Or is this a last vestige of the irony of his political faith?

Hitler was not without devoted adherents in the “Osteria Bavaria”. Some students became seized with a sort of hero-worship regarding him, and hung on to every word he said with wrapt attention. But his chief admirers were the two waitresses, buxom Bavarian wenches, who listened openmouthed to him and danced attendance on him in a way that formed the subject of many jokes among the habitués of the place.

Hitler’s relations with women indeed are a strange and obscure chapter. I saw a great deal of him at that time, and I can certify that he was in these matters as abstemious as in regard to food and drink. The only woman he seemed to care for at all was the lady to whose villa in the hills he fled after his inglorious collapse in November, 1923. He used to correspond with her a great deal and spent frequent week-ends at her place. Latterly he is said to have fallen in love with Winifred Wagner, but I can hardly imagine the Hitler of 1921 in love.

Another thing that struck me was the man’s utter incapacity to deal with important details. When he spoke of Italy, or the German race, or occultism, or the Jews, his talk was a succession of vague generalities, couched in attractive if flowery language, but showing in every case either complete ignorance or at least complete contempt for detail.

Though he insisted in season and out of season on the greatness of “pure Germanism”, I never met a German who was so entirely un-German. His speech, his thought, his outlook were far more Slav than Teutonic. He loved everything foreign while he denounced it. His race theories came from the Frenchman Gobineau and the English renegade Houston Chamberlain. His famous phrase “the Third Reich” was the invention of the Dutchman Moeller van den Bruck. The party salute was an Elizabethan stage convention—a subterfuge adopted by actors to imitate Romans. His regimental standards were a pale imitation of Roman eagles. His uniforms are anything but Germanic. They are a sort of cocktail of French, Austrian and English uniforms with most of the bad points to all three.

But I will say this, as the result of these long evenings spent with him: he was, and probably still is, passionately, almost ferociously, sincere in all he says and does, even when it appears hypocritical and insincere.

This article appears in “The New Statesman Century”, our 250-page anthology of the best and boldest writing from the first 100 years of the NS. To order a copy visit: newstatesman.com/century 

Picture: Archives Charmet / Bridgeman Images
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What Marx got right

...and what he got wrong.

1. You’re probably a capitalist – among other things

Are you a capitalist? The first question to ask is: do you own shares? Even if you don’t own any directly (about half of Americans do but the proportion is far lower in most other countries) you may have a pension that is at least partly invested in the stock market; or you’ll have savings in a bank.

So you have some financial wealth: that is, you own capital. Equally, you are probably also a worker, or are dependent directly or indirectly on a worker’s salary; and you’re a consumer. Unless you live in an autonomous, self-sufficient commune – very unusual – you are likely to be a full participant in the capitalist system.

We interact with capitalism in multiple ways, by no means all economic. And this accounts for the conflicted relationship that most of us (including me) have with capitalism. Typically, we neither love it nor hate it, but we definitely live it.

2. Property rights are fundamental to capitalism . . . but they are not absolute

If owning something means having the right to do what you want with it, property rights are rarely unconstrained. I am free to buy any car I want – so long as it meets European pollution standards and is legally insured; and I can drive it anywhere I want, at least on public roads, as long as I have a driver’s licence and keep to the speed limit. If I no longer want the car, I can’t just dump it: I have to dispose of it in an approved manner. It’s mine, not yours or the state’s, and the state will protect my rights over it. But – generally for good reason – how I can use it is quite tightly constrained.

This web of rules and constraints, which both defines and restricts property rights, is characteristic of a complex economy and society. Most capitalist societies attempt to resolve these tensions in part by imposing restrictions, constitutional or political, on arbitrary or confiscatory actions by governments that “interfere” with property rights. But the idea that property rights are absolute is not philosophically or practically coherent in a modern society.

3. What Marx got right about capitalism

Marx had two fundamental insights. The first was the importance of economic forces in shaping human society. For Marx, it was the “mode of production” – how labour and capital were combined, and under what rules – that explained more or less everything about society, from politics to culture. So, as modes of production change, so too does society. And he correctly concluded that industrialisation and capitalism would lead to profound changes in the nature of society, affecting everything from the political system to morality.

The second insight was the dynamic nature of capitalism in its own right. Marx understood that capitalism could not be static: given the pursuit of profit in a competitive economy, there would be constant pressure to increase the capital stock and improve productivity. This in turn would lead to labour-saving, or capital-intensive, technological change.

Putting these two insights together gives a picture of capitalism as a radical force. Such are its own internal dynamics that the economy is constantly evolving, and this in turn results in changes in the wider society.

4. And what he got wrong . . .

Though Marx was correct that competition would lead the owners of capital to invest in productivity-enhancing and labour-saving machinery, he was wrong that this would lead to wages being driven down to subsistence level, as had largely been the case under feudalism. Classical economics, which argued that new, higher-productivity jobs would emerge, and that workers would see their wages rise more or less in line with productivity, got this one right. And so, in turn, Marx’s most important prediction – that an inevitable conflict between workers and capitalists would lead ultimately to the victory of the former and the end of capitalism – was wrong.

Marx was right that as the number of industrial workers rose, they would demand their share of the wealth; and that, in contrast to the situation under feudalism, their number and geographical concentration in factories and cities would make it impossible to deny these demands indefinitely. But thanks to increased productivity, workers’ demands in most advanced capitalist economies could be satisfied without the system collapsing. So far, it seems that increased productivity, increased wages and increased consumption go hand in hand, not only in individual countries but worldwide.

5. All societies are unequal. But some are more unequal than others

In the late 19th and early 20th centuries, an increasing proportion of an economy’s output was captured by a small class of capitalists who owned and controlled the means of production. Not only did this trend stop in the 20th century, it was sharply reversed. Inherited fortunes, often dating back to the pre-industrial era, were eroded by taxes and inflation, and some were destroyed by the Great Depression. Most of all, after the Second World War the welfare state redistributed income and wealth within the framework of a capitalist economy.

Inequality rose again after the mid-1970s. Under Margaret Thatcher and Ronald Reagan, the welfare state was cut back. Tax and social security systems became less progressive. Deregulation, the decline of heavy industry and reduction of trade union power increased the wage differential between workers. Globally the chief story of the past quarter-century has been the rise of the “middle class”: people in emerging economies who have incomes of up to $5,000 a year. But at the same time lower-income groups in richer countries have done badly.

Should we now worry about inequality within countries, or within the world as a whole? And how much does an increasing concentration of income and wealth among a small number of people – and the consequent distortions of the political system – matter when set against the rapid ­income growth for large numbers of people in the emerging economies?

Growing inequality is not an inevitable consequence of capitalism. But, unchecked, it could do severe economic damage. The question is whether our political systems, national and global, are up to the challenge.

6. China’s road to capitalism is unique

The day after Margaret Thatcher died, I said on Radio 4’s Today programme: “In 1979, a quarter of a century ago, a politician came to power with a radical agenda of market-oriented reform; a plan to reduce state control and release the country’s pent-up economic dynamism. That changed the world, and we’re still feeling the impact. His name, of course, was Deng Xiaoping.”

The transition from state to market in China kick-started the move towards truly globalised capitalism. But the Chinese road to capitalism has been unique. First agriculture was liberalised, then entrepreneurs were allowed to set up small businesses, while at the same time state-owned enterprises reduced their workforces; yet there has been no free-for-all, either for labour or for capital. The movement of workers from rural to urban areas, and from large, unproductive, state-owned enterprises to more productive private businesses, though vast, has been controlled. Access to capital still remains largely under state control. Moreover, though its programme is not exactly “Keynesian”, China has used all the tools of macroeconomic management to keep growth high and relatively stable.

That means China is still far from a “normal” capitalist economy. The two main engines of growth have been investment and the movement of labour from the countryside to the cities. This in itself was enough, because China had so much catching-up to do. However, if the Chinese are to close the huge gap between themselves and the advanced economies, more growth will need to come from innovation and technological progress. No one doubts that China has the human resources to deliver this, but its system will have to change.

7. How much is enough?

The human instinct to improve our material position is deeply rooted: control over resources, especially food and shelter, made early human beings more able to reproduce. That is intrinsic to capitalism; the desire to acquire income and wealth motivates individuals to work, save, invent and invest. As Adam Smith showed, this benefits us all. But if we can produce more than enough for everybody, what will motivate people? Growth would stop. Not that this would necessarily be a bad thing: yet our economy and society would be very different.

Although we are at least twice as rich as we were half a century ago, the urge to consume more seems no less strong. Relative incomes matter. We compare ourselves not to our impoverished ancestors but to other people in similar situations: we strive to “keep up with the Joneses”. The Daily Telegraph once described a London couple earning £190,000 per year (in the top 0.1 per cent of world income) as follows: “The pair are worried about becoming financially broken as the sheer cost of middle-class life in London means they are stretched to the brink.” Talk about First World problems.

Is there any limit? Those who don’t like the excesses of consumerism might hope that as our material needs are satisfied, we will worry less about keeping up with the Joneses and more about our satisfaction and enjoyment of non-material things. It is equally possible, of course, that we’ll just spend more time keeping up with the Kardashians instead . . .

8. No more boom and bust

Are financial crises and their economic consequences part of the natural (capitalist) order of things? Politicians and economists prefer to think otherwise. No longer does anyone believe that “light-touch” regulation of the banking sector is enough. New rules have been introduced, designed to restrict leverage and ensure that failure in one or two financial institutions does not lead to systemic failure. Many would prefer a more wholesale approach to reining in the financial system; this would have gained the approval of Keynes, who thought that while finance was necessary, its role in capitalism should be strictly limited.

But maybe there is a more fundamental problem: that recurrent crises are baked into the system. The “financial instability” hypothesis says that the more governments and regulators stabilise the system, the more this will breed overconfidence, leading to more debt and higher leverage. And sooner or later the music stops. If that is the case, then financial capitalism plus human nature equals inevitable financial crises; and we should make sure that we have better contingency plans next time round.

9. Will robots take our jobs?

With increasing mechanisation (from factories to supermarket checkouts) and computerisation (from call centres to tax returns), is it becoming difficult for human beings to make or produce anything at less cost than a machine can?

Not yet – more Britons have jobs than at any other point in history. That we can produce more food and manufactured products with fewer people means that we are richer overall, leaving us to do other things, from economic research to performance art to professional football.

However, the big worry is that automation could shift the balance of power between capital and labour in favour of the former. Workers would still work; but many or most would be in relatively low-value, peripheral jobs, not central to the functioning of the economy and not particularly well paid. Either the distribution of income and wealth would widen further, or society would rely more on welfare payments and charity to reduce unacceptable disparities between the top and the bottom.

That is a dismal prospect. Yet these broader economic forces pushing against the interests of workers will not, on their own, determine the course of history. The Luddites were doomed to fail; but their successors – trade unionists who sought to improve working conditions and Chartists who demanded the vote so that they could restructure the economy and the state – mostly succeeded. The test will be whether our political and social institutions are up to the challenge.

10. What’s the alternative?

There is no viable economic alternative to capitalism at the moment but that does not mean one won’t emerge. It is economics that determines the nature of our society, and we are at the beginning of a profound set of economic changes, based on three critical developments.

Physical human input into production will become increasingly rare as robots take over. Thanks to advances in computing power and artificial intelligence, much of the analytic work that we now do in the workplace will be carried out by machines. And an increasing ability to manipulate our own genes will extend our lifespan and allow us to determine our offspring’s characteristics.

Control over “software” – information, data, and how it is stored, processed and manipulated – will be more important than control over physical capital, buildings and machines. The defining characteristic of the economy and society will be how that software is produced, owned and commanded: by the state, by individuals, by corporations, or in some way as yet undefined.

These developments will allow us, if we choose, to end poverty and expand our horizons, both materially and intellectually. But they could also lead to growing inequality, with the levers of the new economy controlled by a corporate and moneyed elite. As an optimist, I hope for the former. Yet just as it wasn’t the “free market” or individual capitalists who freed the slaves, gave votes to women and created the welfare state, it will be the collective efforts of us all that will enable humanity to turn economic advances into social progress. 

Jonathan Portes's most recent book is “50 Ideas You Really Need to Know: Capitalism” (Quercus)

Jonathan Portes is senior fellow The UK in a Changing Europe and Professor of Economics and Public Policy, King’s College London.

This article first appeared in the 22 June 2017 issue of the New Statesman, The zombie PM

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