On March 22, 1945, General Patton's Third Army charged through the Rhine,
making a beeline for the heart of Germany. They swept northeast, breaking through the Soviet Zone,
eyes set on Gotha. But fate had other plans, diverting them unexpectedly to Merkers.
A few weeks later, the 358th Infantry Regiment's Third Battalion seized
the village, unknowingly stumbling upon a revelation. Whispers circulated about hidden
Reichsbank gold in the Kaiseroda potassium mine. On April 5, rumors from displaced Germans reached
the intelligence units. The race was on as troops ventured into the mine's depths. Behind a closed
vault lay what possibly was the most splendid treasure ever amassed. The war was coming to an
end, but the dark truth about the riches hidden in the deep mine were just coming out into the light…
With Allied bombings rattling Berlin, a pivotal decision was made to safeguard the wealth of the
German Reichsbank. Facing the imminent threat, a clandestine operation unfolded to transfer
vast portions of gold and currency reserves to the Kaiseroda potassium mine in Merkers.
On February 11, a convoy of railcars transported a staggering billion Reichsmarks, gold reserves,
and a significant cache of foreign currency to the depths of Merkers, finding refuge in
a specially designated vault known as Room No. 8. Simultaneously, in an intricate web of movements,
currency, and personnel were dispatched to the Reichsbank branch in Erfurt. The SS Office for
Economy and Administration, notorious for overseeing concentration camps, added to
the surreal drama by channeling seized loot—gold jewelry, securities, foreign currency—from the
camps to the Reichsbank for safekeeping. In March 1945, under the watchful eye of
Albert Thoms, head of the Reichsbank's Precious Metals Department, the SS loot arrived at Merkers.
Gold and silver bars, along with a trove of treasures stashed in suitcases and trunks,
found sanctuary in Room No. 8. The Reichsminister for Education,
foreseeing the storm, ordered the evacuation of art treasures to mines in March. Dr. Paul Ortwin
Rave was entrusted with overseeing the relocation of one-fourth of the major holdings of fourteen
principal Prussian state museums to Merkers. As the Third Army closed in on Merkers,
desperate attempts were made to move the reserves, including artworks, back to Berlin.
Hindered by the relentless American advance and logistical chaos caused by the Easter holidays,
the efforts proved futile. By April 2, the focus shifted to Reichsmarks,
and on April 4, a group of bank officials rushed to Merkers to retrieve the currency.
With the imminent arrival of American forces, chaos ensued. German officials, assisted by
Polish workers, attempted a hasty retreat with the currency, but the advancing Americans
interrupted their efforts. Fearing capture, some officials fled, setting documents ablaze,
while others desperately tried to reverse the flow of currency back into the mine.
In early 1945, Lieutenant General George Patton's Third Army breached the Rhine
and advanced into the heart of Germany. On April 4, the Third Battalion of the
358th Infantry Regiment, Ninetieth Infantry Division, claimed Merkers, setting the stage
for an extraordinary discovery. Whispers circulating among displaced persons hinted
at the relocation of the German Reichsbank gold to the Kaiseroda potassium mine in Merkers. However,
it was not until April 5 that credible information emerged when some French people
with firsthand knowledge disclosed the mine's hidden treasures to the G-2 intelligence section.
Swift action ensued, with Lieutenant Colonel William A. Russell verifying the claims and
deploying military units to secure the mine's entrances. Major General Herbert L. Earnest,
grasping the gravity of the revelation, ordered reinforcements from the 357th Infantry Regiment.
However, caution prevailed, as General Manton S. Eddy, in contact with Patton,
advised against confirming the gold's capture until definitive verification.
Unraveling the historical tapestry, the strategic dispersion of the Reichsbank's assets,
a response to Allied bombings menacing Berlin, comes to light. In February 1945,
President Walter Funk orchestrated the transfer of gold reserves valued at 238
million dollars to the Merkers mine for safekeeping, shielding Germany's
financial lifeline from the ravages of war. If validated, the capture of the German gold
reserves in Merkers bore immense strategic significance, potentially dealing a decisive
blow to Germany's capacity to procure vital war materials and hastening the war's end.
On April 7, 1945, military personnel interrogated civilians to unveil the hidden storage of Reich
property in the Merkers mine. Simultaneously, new entrances were discovered in Leimbach, Ransbach,
and Springen, swiftly guarded by stationed forces, including tanks from the First
Battalion of the 357th Infantry Regiment. By 10:00am on April 8, a diverse group,
including Russell, Signal Corps photographers, Rave, and German mining officials, descended
2,100 feet into the Merkers mine. They found 550 bags of Reichsmarks in the main haulage way.
Progressing further, they encountered the main vault, sealed by a three-foot-thick brick wall
and an imposing steel door. Attempts to open it failed, but confirmation came that gold lay
behind it. General Eddy was notified, and Patton ordered the vault door to be blown.
At 5:00pm, most of the 357th Infantry Regiment moved out, but the First Battalion continued
guarding the mine entrances. On April 8, a group, including General Eddy and Russell,
entered the mine. Engineers used dynamite to breach the vault, revealing Room No. 8,
which was filled with a staggering treasure trove: 8,198 bars of gold bullion, assorted gold items,
various currencies, silver bars, and more. The enormity of the discovery prompted General Eddy
to countermand the withdrawal order, directing the 357th Infantry Regiment to secure the mine.
As the treasure review continued, artworks were found in other tunnels, drawing Museums,
Fine Arts, and Archives officers. News of the gold discovery reached Patton, who urgently contacted
General Bradley, seeking intervention from Supreme Headquarters, Allied Expeditionary Force,
recognizing the political implications of the find becoming public knowledge.
As the deputy chief of the Financial Branch,
G-5 Division of Supreme Headquarters Allied Expeditionary Force, SHAEF,
Col Bernard Bernstein's journey commenced with a headline in the New York Herald Tribune. His
concern about the authenticity of reports led to a pivotal exchange with Colonel Barrett of
the Third Army and subsequently with Brigadier General McSherry at the advance headquarters
in Rheims. In short order, General Eisenhower entrusted Bernstein with the reins of command.
Navigating challenges in communication with personnel on the ground, Bernstein faced
initial uncertainty about the treasure's contents. Coordinating with Barrett and on-site operatives,
it was eventually confirmed that the mine harbored over a hundred tons of gold, foreign currency,
Reichsmarks, and priceless paintings. Eisenhower's directive tasked Bernstein
with securing the treasure's transfer to a more fortified location. General Crawford's
instructions outlined Bernstein's responsibilities and restricted access to the mine.
Teamed with Lieutenant Colonel Carl L. Morris, Bernstein orchestrated the movement of the
treasure, opting for the Reichsbank building in Frankfurt after a thorough inspection.
Collaborating with local officers, they meticulously planned the takeover and relocation.
Visits to potential storage sites culminated in the selection of the Reichsbank building.
General McSherry requisitioned the site, engineers prepared it for secure storage,
and Bernstein and Barrett finalized plans. On April 10, Bernstein explored the Merkers mine,
gathering information from officials. A subsequent meeting with General Patton affirmed support for
Eisenhower's responsibility. The saga extended with MFAA officers Stout and Webb handling art
treasures while Morris ensured the secure transfer of this unprecedented wealth.
On April 11, 1945, a pivotal chapter unfolded as Colonel Bernard Bernstein received a crucial
directive. The message instructed him to ensure the readiness of a mine's main entrance by 9:00am
the next morning—General George S. Patton was set to pay a visit. Bernstein diligently prepared
the mine and its equipment, even arranging for German civilians to be available for questioning.
As the clock struck the appointed hour, anticipation filled the air. However, Patton
was still at his headquarters, engaged in cordial greetings with Generals Dwight D. Eisenhower
and Omar Bradley. The trio eventually flew to Merkers, arriving at the mine around 10:30am.
Descending into the depths via an elevator, Bernstein and Patton, displaying a hint of
nervous humor, voiced concerns about the safety of the operation. Their destination was Room No.
8. Eisenhower, witnessing the spoils of war, was visibly moved by flattened gold
and silver items stripped from European homes. Amidst suitcases filled with jewelry acquired
through dubious means, plans were devised to inventory and transport the treasures
to Frankfurt. Bernstein disclosed that some of the items bore a sinister origin, having been
plundered from concentration camp victims. The generals, including Brigadier General Otto P.
Weyland, endorsed the decision to move the items. The tour unfolded to reveal not only art but also
plates used in printing Reichsmark currency and the currency itself. A German official
claimed the currency was destined for the German army, but Bradley expressed:
(QUOTE) "I doubt the German Army will be meeting payrolls much longer." The inspection concluded
with Bradley teasing Patton: (QUOTE) "If these were the old free-booting days when a soldier kept
his loot you'd be the richest man in the world." Following the tour, discussions among Bradley,
Eisenhower, and Patton delved into the discovery of gold. Patton, initially inclined toward
secrecy, faced questions from Bradley about the necessity of such measures. The conversation
turned reflective as they pondered the fate of the gold—whether to distribute it among soldiers or
reserve it for post-war weapon procurement. As the night unfolded, the gravity of the
era intensified with the untimely news of President Franklin D. Roosevelt's passing. 6
Post-tour, Bernstein conducted interviews, unraveling the intricate web of German
policy that led to the storage of files and treasures in mines and tunnels.
In the midst of April, Morris orchestrated the transfer of a significant trove of
art and treasures. Collaborating with military brass, including Colonel Perry,
the transportation officer, and the deputy chief of engineers, Morris meticulously planned
personnel deployment and security measures. Facing challenges inspecting art in the Ransbach
mine due to a malfunctioning elevator, MFAA Officer Stout returned to Merkers,
where he discovered loose artwork amidst crated items. Recognizing the urgency of
proper packing, Stout diligently prepared the Ransbach art for the impending move.
On April 12, a Frankfurt team descended to assist. Tasks were assigned, including overseeing money
container markings, analyzing testimonies for additional deposits, and inspecting
the mine's depths. Simultaneously, four teams commenced the inventory of the mine's contents.
The actual move unfolded on April 15, as thirty-two trucks, forming Task Force Whitney,
departed Merkers for Frankfurt, under Colonel Walker's vigilant eye. Escorted by infantry and
military police, the convoy began a meticulous unloading process supervised by Bernstein.
Concurrently, preparations for art transportation
unfolded. Loading commenced on April 16. Bernstein, wary of hidden assets,
proposed a post-move plan to search for Nazi gold. The art convoy, now named Task Force Hansen,
departed for Frankfurt, guided by Stout and Captain Dunn. The unloading and storing of
artwork were completed that day, signifying the successful relocation of both treasure and art.
The Allied forces stumbled upon a trove; a cache of gold, silver, and currency,
appraised at a staggering 520 million dollars, was laid bare before astonished
American soldiers. This unprecedented discovery, however, would not only unravel tales of immense
wealth but also cast a haunting shadow of potential war crimes committed by the SS.
A set of meticulous account books from Thoms's Precious Metals Department,
outlining the Reichsbank's gold holdings, became a crucial piece of the puzzle. Bernstein,
recognizing the gravity of the situation, urgently communicated the need for a sweeping
reconnaissance to locate hidden German assets scattered across mines and secret enclaves.
Undeterred by challenges and a lack of support, Bernstein spearheaded a daring mission covering
nineteen hundred miles, meticulously checking Reichsbanks throughout American-occupied Germany.
The meager initial recovery of 3 million dollars worth of Reichsbank gold was soon
eclipsed by subsequent efforts in May and June, yielding an additional 11 million. Remarkably,
by the mission's end, a staggering 98.6 percent of the 255.96 million dollars in gold listed
on the Precious Metals Department's closing balances had been recovered.
In mid-August, experts from the US Treasury Department and the Bank of England meticulously
evaluated the captured treasure—gold, gold coins, silver bars, and platinum—ultimately appraising
it at a monumental 262.2 million dollars. As the summer of 1945 unfolded, Allied currencies were
repatriated, and the arduous process of returning artworks to their rightful owners commenced.
The gold unearthed at Merkers took on a special significance. Entrusted to the Tripartite
Commission for the Restitution of Monetary Gold, it was destined for redistribution among countries
whose central-bank gold had been pilfered by the Nazis. However, the machinations of the
Cold War delayed the full restitution until 1996. Determining the value of SS loot found at Merkers
proved to be a moral quandary. Non-monetary gold, extracted from victims of Nazi persecution,
found its way to the International Restitution Organization. Bernstein's exhaustive reports
became instrumental in the Nuremberg trials, where Walter Funk was held accountable.