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Another amusing incident arose from the fact that the Reichsbank maintained a not inconsiderable gold deposit in the Federal Reserve Bank in New York. Strong was proud to be able to show us the vaults which were situated in the deepest cellar of the building and remarked:

“Now, Herr Schacht, you shall see where the Reichsbank gold is kept.”

While the staff looked for the hiding place of the Reichsbank gold we went through the vaults. We waited several minutes: at length we were told: “Mr. Strong, we can’t find the Reichsbank gold.”

Strong was flabbergasted but I comforted him. “Never mind: I believe you when you say the gold is there. Even if it weren’t you are good for its replacement."

Shocking, isn’t it. Clearly, it is bad enough that the Reichsbank gold could not be found nor, according to Schacht’s account, did Strong offer to find it. But regardless whether it could not be located due to bad recordkeeping by the Federal Reserve or because the gold was not in the vault is not as significant as Schacht’s nonchalant response to what he astonishingly calls an “amusing incident”. Where is his outrage that the Reichsbank gold could not be located? Why is there no worry about the disposition of the gold and its safety? After all, as President of the Reichsbank, he had responsibility for all of its assets, of which gold is by far the most important.

What can we learn from this event? Schacht apparently considered friendship to other central bankers and his membership in their exclusive club to be a higher priority than his responsibility as guardian of a nation’s gold. http://www.goldmoney.com/gold-resear...-the-gold.html That was 1928, We dont have any gold