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Chapter Eight: the Gathering Storm

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Chapter Eight: the Gathering Storm CHAPTER EIGHT FRANK ALTSCHUL AND THE GATHERING STORM, 1938-1943 At the beginning of the 1930s, the Great Depression seemed to be the greatest threat to domestic and international stability. As the decade progressed, broader international issues of war and peace came to loom ever larger. In response, Frank Altschul’s focus gradually shifted from his original interest in what were almost technical questions of economics and currency policy, to broader issues of international strategy and the balance of power. In part, this was probably a reaction to the increasingly critical depressing situation in Europe, as Nazi Germany’s policies became ever more extreme and the demands of Adolf Hitler on other countries more exigent. This may also have reflected Altschul’s own growing comfort level in considering larger international questions, a sense of ease probably facilitated by his dealings with the balance of power theorists associated with the Yale Institute of International Affairs. Once war began in Europe in September 1939, the 1940 presidential election in the United States was widely considered a pivotal contest, since whomever the voters selected that year would have the responsibility of deciding on his country’s policies towards the conflict in Europe and the ever more serious situation in Asia. Altschul took the most active political role of his life in the 1940 campaign, helping to lay the ground for the nomination of the pro-Allied Republican candidate, Wendell L. Willkie, one of whose earliest backers he became. The following year, Altschul published a short book, a volume he apparently hoped might in some way serve as a springboard to propel him to greater political prominence. Once the United States entered World War II, Altschul became more actively involved with several organizations that sought to influence planning for the postwar world. His interest in doing so may well have been symptomatic of what had for several years been a certain boredom on his part with the day to day business activities of his firm. Within Lazard Frères, moreover, Altschul also found himself increasingly beleaguered, at first thanks to competition from Stanley Russell, but before long largely because his refugee French partners, André Meyer and Pierre David-Weill, sought to squeeze him out from the New York Lazard house and run the business themselves. At the end of 1943 he cut his ties with Lazard Frères. From that time onward, Altschul was free to pursue his own interests, untrammeled by the demands of the bank for which he had worked since his graduation from Yale. On a personal level, even though for much of the 1930s he concentrated primarily on American domestic politics, Altschul watched European developments closely, and was well aware of the ever deteriorating situation on that continent. As early as 1933, he referred to “the horrible conditions at present prevalent in Germany.”1 In 1941, he told one friend that “ever since the emergence of the Nazi power in Germany, I have felt that at some unpredictable time in the future, it must inevitably come into conflict with our American dream, and that we should eventually be forced to take up arms to defend our institutions and perhaps even our frontiers 1 Altschul to Ralph Heller, October 6, 1933, File Ralph Heller, General Correspondence, Altschul Papers. 1 from the creeping menace of totalitarianism.”2 “Many of us, familiar with the European scene,” he later told a law partner of the anti-interventionist Senator Robert Taft of Ohio, “saw clearly that the German dream of world dominion had been galvanized into life anew by Adolf Hitler, and we were convinced that, sooner or later, this challenge would have to be met.”3 As Hitler’s efforts to dismantle the Versailles settlement proceeded, Altschul watched apprehensively, and would apparently have welcomed a more firmly anti-German line on the part of Britain and France. He later recalled “that fatal blunder in British policy when no encouragement was given to the French impulse to resist the Germans at the time of the occupation of the Rhineland” in 1935.4 With some severity, in 1941 he told a British friend who had close connections to the Ministry of Information: “The history of British post-war policy has left an exceedingly bad impression” in the United States. Although Americans could not help but feel “the greatest admiration for the courage and endurance of the British” as they faced down German wartime assaults, “deep down, there is still the feeling that if the British now have to display in such distressing circumstances such magnificent qualities, it is because stupid and uninformed leadership” left them no alternative. Altschul listed a string of interwar international issues he and many other Americans believed the British government had mishandled. “Manchukuo and Ethiopia are not forgotten and never have been completely understood. The British flirtations with the Germans at the expense of the French are felt by many to have brought you to your present pass. The Naval Treaty, the refusal to back the French up at the time of the Rhineland occupation, the Runciman Mission, Munich—all are merely striking episodes in a long record of ineptitude and what to many seemed hypocrisy.”5 Altschul had watched at uncomfortably close quarters the impact of some of these events upon Europe. Despite his lack of interest in formal religion, in October 1938 Altschul allowed his name to be used as one of 400 prominent New Yorkers who would help to raise $250,000 to construct a Temple of Religion, dedicated to all faiths and intended to promote unity of belief and religious toleration, on the World’s Fair site in Flushing Meadow, New York.6 He also took more concrete measures to assist those most in danger. Increasingly severe Nazi persecution of Germany’s Jewish population meant that as the 1930s progressed Altschul helped many family members, professional associates, and friends to flee the Continent and resettle in Britain or the United States; after the fall of France in 1940 these were joined by his Paris Lazard partners Pierre David-Weill and André Meyer.7 These were efforts that Altschul undertook in 2 Altschul to Alan Valentine, October 9, 1941, File Alan Valentine, General Correspondence, Altschul Papers. 3 Altschul to John Hollister, June 8, 1943, File John B. Hollister, Political Series, Altschul Papers. 4 Altschul to Cecily Goodhart, January 25, 1943, File Arthur and Cecily Goodhart, General Correspondence, Altschul Papers. 5 “Memoranda,” enclosed in Altschul to Mrs. Mary H. Churchill, July 9, 1941, File Mary Churchill, General Correspondence, Altschul Papers. 6 “400 to Aid Drive for Fair Temple,” New York Times, October 26, 1938. 7Reich, Financier, 39-41. Correspondence relating to Altschul’s assistance and support for such refugees is scattered through his General Correspondence and Catalogued Correspondence Files, especially those files relating to Altschul family members, and also in the Refugees Files. 2 collaboration with his Lehman in-laws, who established a family trust to fund the expenses of removing and supporting relatives from continental Europe. Herbert Lehman and Altschul, besieged by applicants with whom they had no personal ties, both gave generously to such efforts, but were still often in the distressing situation of finding it necessary to restrict their assistance to individuals who had some familial or business links or ties of friendship to themselves.8 Among those refugees whom Altschul assisted to leave Europe were his youngest uncle, Charles’s brother Julius, who recalled many years later how, thanks to the entire family’s “kindness and Frank’s energy,” he, his wife, and their small son Ernst “were rescued from Hitler misery to these—then still quiet—shores,” where Camilla Altschul, Charles’s widow, gave them a particularly warm and considerate welcome.9 Another family member whose rescue Altschul helped to organize was that same distant cousin, Otto “Siberian” Fürth, whose escape from a Russian prison camp his father had facilitated in late 1919. On returning to Vienna, Fürth completed his university studies, married, and worked in his family’s fez business, while writing a number of plays, several of which were professionally produced, as well as numerous poems and newspaper articles. When Germany annexed Austria in early 1938, Fürth immediately applied for visas to the United States, and in August 1939, as the outbreak of war loomed, moved with his family to Switzerland. With Altschul’s help and sponsorship, two years later, in August 1941, the Fürths finally arrived in New York, where Fürth became an accountant at Lazard Frères, a position he kept until retiring in 1964 at the age of seventy.10 By fall 1938 Altschul was not only trying to modernize the Republican Party; he had also come to recognize that Franklin D. Roosevelt, however much Altschul might disagree with the finer points of his policies, had a masterly ability to articulate the larger issues of politics, especially what the Lazard banker was coming to perceive as the overwhelming need to combat the growth of totalitarian ideologies across Europe. By the late 1930s, his preoccupation with the deteriorating international situation had pre-empted most of Altschul’s other political interests. In 1937 Altschul commented on the “calm, one may almost say with what apathy, the French at present seem to be regarding European developments.”11 It was not a viewpoint he shared. In the late 1930s, members of the New York Lazard firm followed unfolding events in Europe with intense attention. For many years, the three Lazard firms had sent each other on something like a weekly basis in-depth appraisals of the economic and political situation in their own countries and beyond. From at least September 1938, immediately after the Munich agreement was concluded, the New York house apparently supplemented these with other sources.
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