he German balance of payments went strongly negative. In 1933-36 exports declined by 9% in value while imports rose by 9%.
[43] In the spring and summer of 1936, the reduced availability of foreign currency constrained imports of raw materials, with some key stockpiles falling to only two months' production.
[44] Dr. Schacht informed the War Minister, Field Marshal
Werner von Blomberg that lack of lead and copper prevented fulfilling his requests for increased military production.
[45]
Hitler faced the choice between conflicting recommendations. On one side a "free market" technocratic faction within the government, centered around Reichsbank President Hjalmar Schacht, Minister of Economics Walther Funk and Price Commissioner Dr. Carl Friedrich Goerdeler calling for decreased military spending, free trade, and a moderation in state intervention in the economy. This faction was supported by some of Germany's leading business executives, most notably Hermann Duecher of AEG, Robert Bosch of Robert Bosch GmbH, and Albert Voegeler of Vereinigte Stahlwerke AG.[46] On the other side the more politicized faction favored
autarkic policies and sustained military spending.
[47] Characteristically, Hitler hesitated before siding with the latter, and in August issued the "Four-Year Plan Memorandum" ordering
Hermann Göring to have the German economy ready for war within four years.
[48][49] The “Four-Year Plan” increased state intervention in the economy and siphoned off resources from the private sector for rearmament. Rearmament fell short of Goering’s goals, and the plan resulted in shortages and rationing for most German citizens.