Following the Nazi Seizure of Power in January 1933, Schwede was directly appointed as Coburg's Lord Mayor ("Oberbürgermeister"). In March 1933, a terror campaign was launched against Jews and opponents of the Nazis under his leadership. By the end of April, 152 people had been arrested and harshly mistreated while in "protective custody", many in Schwede's presence. In 1939 Coburg was officially granted the title "First National Socialist City in Germany" (). Schwede was also made an honorary citizen of Coburg, as Hitler had been, and was awarded use of the suffix "Coburg" in his name.