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After his release he moved to North Germany where he quickly became one of the most important figures in Sturm Abteilung (SA). He developed a large following and became leader of the revolutionary wing of the NSDAP.
Strasser was a committed socialist who, like Ernst Roehm, opposed Hitler's policy of trying to win the support of the country's major industrialists. His outspoken views caused a deep rift with Hitler and other leaders of the party.
In December 1932, Paul von Hindenburg invited Kurt von Schleicher to become chancellor and invited Strasser to be his deputy. Adolf Hitler and Hermann Goering challenged the move claiming it was an attempt to create a split in the NSDAP. In order to maintain party unity Strasser resigned all party positions and found work in a large chemical firm.
(1) Gregor Strasser, speech in the Reichstag (May, 1934)
The rise of National Socialism is the protest of a people against a State that denies the right to work. If the machinery for distribution in the present economic system of the world is incapable of properly distributing the productive wealth of nations, then that system is false and must be altered. The important part of the present development is the anti-capitalist sentiment that is permeating our people.
(2) Otto Strasser, Hitler and I (1940)
Adolf Hitler enters a hall. He sniffs the air. For a minute he gropes, feels his way, senses the atmosphere. Suddenly he bursts forth. His words go like an arrow to their target, he touches each private wound on the raw,
liberating the mass unconscious, expressing its innermost aspirations, telling it what it most wants to hear. If he tries to bolster up his argument with theories or quotations from books he has only imperfectly understood, he scarcely rises above a very poor mediocrity. But let him throw away his crutches and step out boldly, speaking as the spirit moves him, and he is promptly transformed into one of the greatest speakers of the century.
(3) Ernst Hanfstaengel, Hitler: The Missing Years (1957)
Hitler was deeply jealous of Gregor Strasser. He was the one potential indeed actual rival within the party. He had made the Rhineland his fief. I remember during one tour through the Ruhr towns seeing Strasser's name plastered up against the wall of every railway underpass. He was obviously quite a figure in the land. Hitler looked away. There was no comment about "Strasser seems to be doing well", or any approving sign.
November brought Reichstag elections again, but in spite of a frenzied campaign, the Nazis lost ground. Their representation was reduced to 196, and it was at this point that Schleicher became Chancellor, to exercise the power he had so long controlled from the wings. His plan was to split off the Strasser wing of the Nazi Party in a final effort to find a majority with the Weimar Socialists and Centre. The idea was by no means so ill-conceived and amidst the momentary demoralization and monetary confusion in the Nazi ranks, very nearly came off. With the failure came the final break between Hitler and Strasser, who, two years later, paid for this disloyalty with his head.
(4) On 9th December, 1932, Gregor Strasser talked to his old friend Dr. Martin, about Adolf Hitler, Ernst Roehm and Joseph Goebbels.
Dr. Martin, I am a man marked by death. We shall not be able to go on seeing each other for long and in your own interests I suggest you do not come here any more. Whatever happens, mark what I say: From now on Germany is in the hands of an Austrian who is a congenital liar, a former officer who is a pervert, and a clubfoot. And I tell you the last is the worst of them all. This is Satan in human form.