The verbiage is from a death announcement that also bore this photo, found in the same wallet. It was printed in German and translated by a German friend of mine.
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UPDATE: I found the German Military Graves Commission website and database online, and Franz Schmid is listed. He did indeed die in the battle of Kursk, Russia and is buried at the German cemetery there, Besedino. The database gives a slightly different birthdate for Franz, Oct 18, 1920 rather than Oct 20, 1920. Here is the online record:
I have been researching this uniform for a couple of hours, and have learned that the uniform is that of the the German Reichsarbeitdienst (RAD), or German National Work Service. It is not of the Hitler Youth as I originally thought, though the jacket is almost identical, and the hat similar, to those of the Hitler Youth. The RAD was formed in July of 1934 as the official state and party labor service. It was an auxiliary service to the military, but was not part of the military, even though it's members wore military style uniforms.
German youth between 18 and 25 were obligated to serve six months in the RAD or other national service, and then two years in the military after that.
The cool hat being worn by this man is a Robin Hood RAD cap. The RAD symbol on the front of the cap is the head of a shovel.
Alfred Schmid, probably the brother of Franz Schmid above. Papers in the wallet identified this man. He too fell in battle, also on the Russian front.
He is wearing a dress uniform complete with white gloves and a ceremonial sword.
It appears the photograph was taken in his living room.
I wonder how many of these young men survived the war.
Update: Reader Doug Kursk says the eagle on this soldier's arm indicates he was a member of the SS, presumably the Waffen SS, who went into battle like other troops.
I have additional photos from the wallets, but not all are interesting. There's a group of boys in Bavarian dress, playing accordions outside a shop; pictures apparently from Russia, and others.