Chapter 1- Democracy and Dictatorships in Germany 1919-63

In 1871 , demands for pan-Germanism (united German peoples) led to Prussia leading the way for the whole of Germany to unify in 1871.

Had a population of 60 million in 1918, the highest in Europe. Had colonies in Africa and the Pacific. 60% lived in big cities and towns, the rest lived the rural countryside. Had the most powerful army in the world and from 1907 Kaiser Wilhelm started to build a powerful navy.

Germany pre-1918

Born in 1859. He ascended the throne in 1888 until he abdicated in 1918. He ruled Germany as an autocrat (without consulting the German Parliament).

Kaiser Wilhelm II

-Failure to achieve rapid victory-The German high commanders strategy was built on the notion of a quick victory in order to avoid a long drawn-out conflict with the allies. By the autumn of 1914 the Schlieffen Plan had failed to gain rapid victory.

-stalemate- Germany forced to fight the war on 2 fronts: the east and the west. The balance of military power resulted in a war of stalemate put immense pressure on Imperial Germany. The situation was particularly bad for Germany because of the Allies’ naval blockade, that seriously limited the import of all supplies. Although the German policy of unrestricted submarine warfare at first seriously threatened Britain, it didn’t decisively weaken it.

-Strength of the Allies- Britain and France were major colonial powers and could extract personnel resources and supplies from their overseas empires. From April 1917, the Allies were strengthened by the USA’s entry into the war, which resulted in the mobilisation of 2 million men.

-Limitations of German War economy- Imperial Germany was unprepared for the economic costs of a prolonged war. It made efforts to increase arms production, but the economy was seriously dislocated by the disruption to finances and collapse of trade.

-Failure of the final offensive, March 1918-A change for Germany to escape military defeat came when Russia signed for peace in the Treaty of Brest-Litorste in March 1918, which immediately enabled Germany to launch a last major offensive on the Western front. It was unable to maintain the momentum and, by August, German troops were being forced to retreat. At the same time its own allies, Austria, Türkiye and Bulgaria, were collapsing.

What problems were faced by Germany in 1918

Its purpose was to avoid a 2 front war by winning victory on the Western Front before dealing with the treat from Russia. Aimed to defeat France within 6 weeks, by a massive German offensive in Northern France and Belgium.

The Schlieffen Plan

Food and fuel shortages-The exceptionally cold winter of 1916-17 caused sever food and fuel shortages in the cities. Forced German people to rely on turnips because of the failure of the potato crop.

Civilian deaths-The number of civilian deaths from starvation and hypothermia increased from 120,000 in 1916 to 293,000 in 1918.

Infant mortality- The number of deaths for children under 1 increased to over 50% in the course of the war years.

The influenza pandemic-In 1918 Europe was hit with the “Spanish flu”, killed between 20-40 million people, higher then the casualties of WW1.

Inflation-Workers were forced to work even longer hours, but wadges fell below the inflation rate. Average prices in Germany doubled between 1914 and 1918, but wadges only rose by 50-75%

Casualties- About 2 million Germans were killed, with a further 6 million wounded, many resulting in a disability.

The socio-economic problems of WW1

Ludendorff wanted to change Germany into a constitutional monarchy, aimed to establish a more democratic government while maintaining the German Monarchy. He wanted to secure for Germany the best possible peace terms from the Allies, believed the Allied leaders would be more sympathetic to a democratic regime. Secondly, he hoped the change would prevent the outbreak of Political revolutionary movements. Wanted to blame the loss on the new leadership, instead of the old one and the army.

On October 3rd Prince Max von Baden a moderate conservative was appointed chancellor. A series of constitutional reforms came into place turning Germany into a parliamentary democracy: -Wilhelm II gave up his powers over the Army and Navy to the Reichstag. -The chancellor and his government were made accountable to Reichstag instead of to the Kaiser. -At the same time, armistice negotiations with the Allies were opened.

By early November it was apparent that the creation of a constitutional monarchy wouldn’t defuse what had become a revolutionary situation.

The October reform

29th October a mutiny began to spread among some soldiers who refused to obey orders at Wilhelmshave. Prince Max’s government quickly lost control of the political situation, by 2nd November sailors had taken other important ports e.g. Kiel and Hamburg. Had been prompted by a real fear among the sailors that the officers were planning a suicide attack on the British fleet. By 6th November numerous workers’ and soldiers’ councils, similar to the soviets that had been set up by the Bolshervik revolution in Russia, were establishes in the major cities of Berlin, Cologne and Stuttgart. In Bavaria, the last member of the House of Wittlesbach, King Louis III was deposed and the socialist Kurt Einder proclaimed Bavaria an independant socialist republic.

The October reforms failed to impress the German people. Turing into a more fundamental revolutionary movement whose demands were for an immediate peace and the abdication of the Kaiser Prompted by: -The realisation by troops and sailors that the war was lost and nothing was to be gained by carrying on. -The sense of national shock when the news came of Germany’s military defeat. Propaganda and censorship had delayed the reality for too long. -The increasing anger and bitterness over socio-economic conditions.

On the 9th November Prince Max announced that the Kaiser would abdicated and a left wing provisional government would be formed by Friedrick Ebert: Provisional as it was short term until a national election was held to vote for a National Assembly. Coalition as it was a combination of parties, the Social Democratic Party (SPD) and the Independent Social Democratic Party (USPD).

The German Revolution

The left wing movement consisted of 3 main strands in early November 1918.

The SPD- Represented moderate socialist aims, led by Friedrick Ebert and Philipp Scheidermann dated from 1875. In the election of 1912 it had become the largest party in the Reichstag with a membership of over a million. Its fundamental aim was to create a socialist republic, being wholly committed to parliamentary democracy, rejected anything that might have been likened to soviet-style communism.

The Spartacists- Extreme left, led by Karl Liebknecht and Rosa Luxemburg. Formed in 1905 as a minor faction of the SPD by 1918 had a national membership of about 5000. The Spartacists had opposed the war and they were deeply influenced by Lenin and Bolshevism. Believed that Germany should follow the same path as communist Russia. Aimed to create a soviet republic based on the rule of the proletariat through workers’ and soldiers’ councils.

The USPD- Formed in 1917 as a breakaway group from the SPD. It was led by Hugo Hause and Karl Kautsky. Was a minority in the assembly in the Reichstag, it had a following of 300,000 members. Demanded radical social and economic change as well as political reforms. Was far from united and internal divisions and squabbles seriously curtailed its influence the main disagreement was between those who sympathised with the creation of a parliamentary democracy and those who advocated a much more revolutionary democracy based on workers’ councils.

The left-wing movement

The different aims and methods of the socialist movement meant that there was a lack of unity in Ebert’s coalition government. German society was in a chaotic state of near collapse, leaving little room to manoeuvre when they had to make hasty and difficult decisions.

Ebert’s coalition government

Socio-economic-Inflation wadges were falling behind prices, increasing Social discontent. Shortages from the winter of 1916-17 fuel and food shortages were causing real hardship in the cities. The epidemic “Spanish flu” killed thousands. It was the most serious flu epidemic of the 20th century.

Left wing opposition- Strikes from the autumn of 1918 the number of strikes increased markedly. German communists inspired by the events of 1917-18 in Russia communists aimed to bring about a revolution in Germany. Workers’ and soldiers’ councils hundreds of councils were created and many wanted changes to the army and industry.

Right wing opposition- Freikorps a growing number of right wing nationalist soldiers were forming paramilitary units The German Army was generally conservative, but deeply embittered by the military defeat. Nationalist conservatives were deeply against the abdication of the Kaiser and didn’t support the creation of the new republic.

Military- demobilisation about 1.5 million soldiers had to be returned to Germany. Allied blockade was maintained even after the Armistice. Shortages causing social distress weren’t relieved until June 1919. Peace terms the Armistice was when they agreed to stop fighting, but there was great public concern about the terms and actual effects of the peace treaty.

His main worry was that the extreme left would gain the upper hand.

Ebert’s main problems

On 10th November, the day after the declaration of the republic, General Wilhelm Groener, Ludendorff’s successor, telephoned Ebert. The supreme Army Command agreed to support the new government and to use troops to maintain the stability and security of the new republic. In return, Ebert promised to opposed the spread of revolutionary socialism and to preserve the authority of the army officers.

Ebert-Groener pact

On 15th November, Karl Legien, leader of the trade unions and Hugo Stinnes, leader of the industrial employees created the Stinnes-Legien agreement. It was in effect, a deal where the trade unions made a commitment not to interfere with private ownership and the free market, in return for workers’ committees, an 8 hour working day and full legal recognition. Ebert’s government endorsed this because the German trade unions were a powerful movement and traditionally closely tied with the SPD.

These 2 agreements with the army and industry have been seriously criticised, particularly by the left wing. The army wasn’t reformed at all and it wasn’t really committed to democracy. Employers resented the concessions and were unsympathetic to the Weimar system.

Stinnes-Legien agreement

In January 1919 the Spartacists launched an armed rising in Berlin, aimed to overthrow the provisional government in order to create a Soviet republic. 5th January they occupied public buildings, called for a general strike and formed a revolutionary committee. They denounced Ebert’s provisional government and the coming elections, which in their eyes was betraying the revolution. There were 3 days of savage street fighting and over 100 were killed. Was easily defeated and afterwards controversially Liebknecht and Luxembourg were brutally murdered while in police custody.

The uprising of January 1919 showed that the Spartacists were strong on policies, but detached from political realities. The government led by the defence minister, Gustav Noske, had not only the backing of the army’s troops but also the 120 “irregular” military-style groups, Freikorps, with about 400,000 soldiers. He placed his trust in the generals in charge to use unrestrained force against the disturbances.

The Spartacists revolt

The election results quickly led to the creation of the National Assembly on 6th February.

The elections for the national assembly took place in January 1919. For reasons of security, the Assembly’s first meeting was switched to the town of Weimar. More serious trouble in Bavaria in April resulted in a short-lived soviet-type republic being established there. The Freikorps brought the disturbances under control, though, in each case, at the cost of hundreds of lives.

The highest turnout of 83% in the election suggested faith in the idea of democracy. 76.1% of the electorate voted for pro-democratic parties. The solid for the 3 main democratic parties: the SPD, the DDP, and the ZP, made it straightforward to form a coalition government, known as the Weimar constitution.

Although the DNVP gained only 10.3%, it had backing from important conservative supporters e.g. landowners, industrialists and army officers. The DVP and its leader Stresseman didn’t support the Weimar republic in 1919 because they had wanted Germany to be a constitutional democracy.

The national assembly and Weimar constitution

In November 1918 Ebert had invited liberal lawyer Hugo Pruess to draw up a new constitution for Germany, a draft was outlined by the time the National Assembly was established.

The proposals for the new constitution were influenced by the long-established democratic ideas of Britain and the USA. In the introduction of proportional representation(PR) and the creation of a federal structure, Germany’s circumstances and traditions were acknowledged. On 31st July 1919, the Reichstag voted strongly in favour of the constitution and on 11th August President Ebert ratified it.

The Weimar Constitution

Germany had a federal structure with 17 Lünder(regional states).

President-Elected by the people every 7 years. Enjoyed considerable powers: the right to dissolve the Reichstag, the appointment of the chancellor, the position of supreme commander of the armed forces. The capacity to rule by decree at a time of national emergency (Article 48) and to oversee the Reichstag. These powers created a very complex relationship between the president and those of the Reichstag and Chancellor.

Supreme court-created to settle different interpretations of the law.

Chancellor (and his ministers)- Appointed by the president but must have the support of the Reichstag.

Reichstag- Main representative assembly and the main law-making body of parliament.

Parliament-The Reichstag was the main representative assembly and law making body of the parliament. It consisted of deputies elected every 4 years on the basis of a system of PR. The PR system allocated members to parliament from the official list of political party candidates. They were distributed on the basis of one member for every 60,000 votes in an electoral district. The Reichsrat was the less important house in the parliament. It was made up of representatives from all of the 17 regional states’ governments, which all held local responsibilities e.g. education, polices and so on. But the Reichsrat could only initiate or delay proposals, and the Reichstag could always overrule it.

Bill of rights-It outlined broad freedoms: Personal liberty and the right to free speech, freedom from censorship, equality before for the law of all Germans and religious freedom (no state Church was allowed).

The key terms of the constitution

PR- Became the focus of criticism after 1945. It had encouraged the formation of many new, small splinter parties like the NAZIS. This made it difficult to form and maintain governments. It was virtually impossible for only one party to form a majority government, so coalitions were required, sometimes of 3 and even 4 parties. May have contributed to the political instability of the Weimar Government.

The relationship between the President and the Reichstag- Was meant to have a fair system of checks and balances, but this was very complex. It aimed to create a presidency that could provide leadership “above all parties” and limit the powers of the Reichstag. The presidents powers were seen as amounting to those of a substitute emperor. There was uncertainty in constitutional matters from the start. Struggled to keep a balance of power between the president and the Reichstag.

Article 48- This provision provided the head of state with the authority to suspend civil right s in an emergency and restore law and order by the issues of presidential decrees. The intention was to create the means by which government could continue to function in a crisis. The effect was to override the power of the Reichstag. They assumed a particular importance during the crisis that brought Hitler to power in 1933. In the crisis of 1923 the presidential powers were used as intended to a very good effect.

The continuity of traditional institutions- It made no provision to reform the old traditional institutions of Imperial Germany: The civil service was ell educated and professional, but tended to conform to the conservative values of Imperial Germany. The judiciary continued to enjoy its traditional independence under the Weimar constitution, but the hearts of many judges didn’t lie with the Weimar Republic. The army enjoyed greater status and many of the generals were socially linked with the Junkers (landowning aristocrats). It sought to maintain its influence after 1918 and was generally not sympathetic to democratic Germany. It was the only real authority that had military capacity. Universities were very proud of their traditional status and generally more sympathetic to the old political rules. Effective use was made of the established professional skills and educated institutions of the state. However, the result was that powerful conservative forces were able to exert great influence. This was at odds with the left wing’s wishes to extend civil rights and to create a modern, democratic society.

The issues of the Weimar constitution

By mid 1919 a degree of stability had returned to Germany. The German Revolution was strictly limited in scope. Society was left almost untouched by these events, for there was an attempt to reform the key institutions: the civil service, judiciary and army all remained essentially intact, similarly, the power and influence of Germany’s industrial and commercial leaders remained unchanged, there was no changes in land ownership.

Plans were outlined for the improvement of working conditions and the begging of a welfare state.

The German revolution

Reduced the threat from the left. Showed that Ebert was a strong leader, boosting peoples views about him and his government. Removed the lift wing leaders, ensure that it can’t reoccur.

Ways the defeat of the Spartacists was important

Ebert was dependant on the Freikorps, if he loses their support then it would be challenging, as it increases the right wing political threat, as he gave the right power and if he turns on them it wouldn’t be good. People don’t support Ebert.

Ways the defeat of the Spartacists wasn’t important

It was generally assumed that it was to be fair and based upon Wilson’s 14 points. However it soon became clear that the peace treaty wouldn’t be open for discussion with Germany’s representors and when the draft terms were presented to Germany in May 1919 there was shock and outrage. Caused the first Weimar government les by Scheidermann to resign but when it appeared allies weren’t prepared to negotiate, the Reichstag were obliged to sign, or have Germany invaded. The German representatives led by Hermann Muller signed the treaty in the Hall of Mirrors, 28 June 1919.

Why was the Paris peace settlement so controversial?

-Reduce armaments, for every single country. -Apply the principle of self-determination (nation ruling itself). -Create a League of Nations in order to maintain national peace, however the USA wasn’t a part of it.

President Wilson’s aims

-Annex the Rhineland and create a buffer state. -Impose major disarmament on Germany. -Impose heavy reparations.

M. Clemenceau’s aims

-Guarantee British military security, especially to secure naval supremacy. -Keep communism at bay. -Limit French demands, feared a weak Germany would impact the European economy.

Mr Lloyed George’s aims

-Eupen-Malmedy. Subject to plebiscite, the districts of Eupen and Malmedy to be handed over to Belgium.

-Alsace-Lorraine. Germany to return these provinces to France (mainly French speaking with some rich iron deposits. Previously annexed by Germany in 1871.)

-North Schleswig. Subject to plebiscite, Germany to hand over North Schleswig to Denmark.

-West Prussia and Posen. Germany to surrender West Prussia and Posen to creating the “Polish corridor”. (Mixed population, but mainly Polish except for big towns).

-Upper Silesia. A plebiscite to be held in the Province of Upper Silesia, as a result in 1921 it was divided between Poland and Germany, which caused great acrimony as the population was mixed and the area rich in resources.

-Danzig and Memel. The German coastal cities of Danzig and Memel made international “free cities” under the control of the League of Nations.

-Austria. The reunification of Germany with Austria was forbidden in order to prevent making a stronger Germany. Although the empires of Germany and Austria had been independent states, they were both German speaking an there had been demands for some kind of union in 1918.

-Kiel Canal and rivers. All major rivers to be opened up for all nations and to be run by international commission.

-Saar area. Places under the control of the League of Nations for 15 years, which was “administered” by the French. A very rich industrial area, but mainly German. Voted to return to Germany in 1935.

-Rhineland. To be demilitarised form the French frontier to a line 50km east of the Rhine. Remained part of Germany, but no fortifications allowed and no military forces to be garrisoned within the area.

-Germany’s colonies. Distributed as mandates, under control of countries supervised by the League of Nations, e.g. Britain took responsibility for German East Africa.

Territorial arrangements

Germany was forced to sign the war guilt clause, Article 231.

War Guilt

Reparations sum was to be fixed later by the Inter-Allied Reparations Commission (IARC). In 1921 the sum was fixed at £6600 million. Germany to make substantial payments in kind, e.g. timber. Also all coal production in the Saar region was given to France.

Reparations

Germany to abolish conscription and to reduce its army to 100,00. No tanks or big guns were allowed. Rhineland demilitarized zone. Germany wasn’t allowed any military aircraft. German navy was limited to 6 battleships, 6 cruisers, 12 destroyers and 12 torpedo boats. No submarines were allowed. The German fleet surrendered to Britain in 1918, but sank its own ships at Scapa Plow on 28th June 1919.

Disarmament

The Treaty also set out the covenant of the League of Nations, which included the aims and organisation of the League. Germany had to accept the League but it wasn’t initially allowed to join.

Maintaining peace

After the German revolution of 1918-19 the left-wing movement remained in a state of confusion: -The moderate socialists of the SPD were committed to parliamentary democracy. -The communists (KPD) pressured for a workers’ revolution. -The USPD stood for the creation of a radicle socialist society, but within a democratic framework. -In 1920 the USPD disbanded and the vast majority of its members joined either the KPD or the SPD.

Threats from the extreme left

Wanted the revolution to proceed on Marxist lines, with the creation of a one-party communist state and the major restructuring of Germany both socially and economically. After the 1917 Russian Revolution, many German communists were encouraged to believe that international revolution would spread throughout Europe. It rejected the Weimar system.

KPD opposition to the Weimar

-KPD had the support of 10-55% of the electorate, there were continuous revolutionary disturbances protests, strikes and uprisings. -January 1919- Berlin Spariacists uprising to size power crushed by the German Army and the Freikorps. -March 1919-Bavaria-Creation of soviet republic “Red Bavaria", crushed by the Freikorps. -March 1920-Ruhr- Formation of the Ruhr army by 50,000 workers to oppose the Kapp Putsch, crushed by German army and Freikorps. -March 1921-Mersebury and Halle- “March operation”: uprising of strikes organised by the KPD, put down by the police. -Summer 1923-Saxony and Thuringin- “The German October” a wave of strikes and the creation of a SPD/KPD state government. Planned for a military uprising, overthrown by the German army.

Revolutionary disturbances

A Bavarian Soviet Republic with a “Red Army” of workers was set up by Eugen Leviné and proposed radical, political and economic changes. After a month the Freikorps and the Army moved in and brutally crushed the republic with 1000 deaths in May. Became known as the “White terror”. Shifted the politics of the area to the right wing and it became a safe haven for extremists.

Red Bavaria

The KPD and the SPD had formed coalitions in the regional governments of Saxony and Thuringia, but the communists made military preparations for an uprising with “Proletarian Hundreds” (defence units). Stressemann’s government foiled the plan for the “German October” revolution- the army crushed the units and the regional governments were re-created without communists.

The German October

As a result of the right-wing propaganda, many Germans began to have exaggerated fears about the possibility of impending revolution. However the extreme left posed much less of a threat to the Weimar than was believed.

Bad co-ordination: even during the chaos and uncertainty of 1923, the extreme left proved incapable of mounting a unified attack on Weimar democracy.

Poor leadership: The extreme left suffered at the hands of the Freikorps, which removed some of its ablest and most spirited leaders, e.g. Liebknecht and Luxemburg. The later leadership suffered from internal divisions and disagreements on tactics.

Concessions: The Weimar government played on the differences within the extreme left, e.g. by making concessions that split it like for example the Kapp Putsch in March 1920.

Repression: The authorities systematically repressed the rebels with considerable brutality.

Reason for the extreme left’s failure

Didn’t really have an organised ideology (apart from a shared interest in nationalism). It was drawn together by a growing belief in the following: -Anti-democracy: rejected the Weimar system and its principles. Aimed to destroy the democratic constitution because it was seen as weak, which it believed had contributed to Germany’s problems. -Anti-Marxism: Even more despised than democracy was the fear of communism. It was seen as a real threat to traditional values and the ownership of property and wealth, and when Russian Communism was established, it reinforced the idea that communism was anti-German. -Authoritarianism: Favoured the restoration of some authoritarian, dictoral regime, although in the early 1920s there wasn’t a real consensus on what kind of strong government and leadership would be established. -Nationalism: Was at the core of the extreme right, but Germany’s national pride had been deeply hurt by the events of 1918-19. From the time of the ToV, this conservative nationalist response reinforced the ideas of the “Stab in the back” myth and the “November Criminals”. The war, it was argued had not been lost because of army military defeat suffered by the army, but as a result of the betrayal by the unpatriotic forces within Germany, included pacifists, socialists, democrats and Jewish people.

Threats from the extreme right

A coalition of nationalist-minded old imperial conservative parties, e.g. the Fatherland Party and the Pan-German League. It contained extremist racist ideas. Although it was the party of landowners and industrialists, it had a broad appeal among some of the middle classes. It was the largest party in the Reichstag on the extreme right and was able to poll 15.1% in the 1920 election.

DNVP (Germany National People’s Partly)

The effects of the War and its aftermath increased the attraction of the Völkisch nationalism to the far-right. By early 1920, there were probably about 70 relatively small splinter nationalist parties, which were racist and anti-semetic e.g. the Nazis.

Racist nationalism

From 1920 the Weimar government tried to control the actions of the Freikorps, caused the problem of political assassination. In the years 1919-22 there were 376 political murders: 22 by the left and 354 by the right. The most notorious terrorist gang was known as the “Consul organisation”, it was responsible for the assassination of a number of key republican politicians. Matthias Erzberger- murdered because he was a Catholic and a member of the ZP who had signed the armistice. Walther Rathenau- a foreign minister1921-2, drew-up the Rapallo Treaty with the USSR. Murdered because he was Jewish, and was committed to democracy. Karl Gareis- leader of the USPD. Murdered on the 9th June 1921 because he was a committed socialist.

Consul organisation

The Freikorps played a central role. By early 1920 there was considerable unease within the ranks of the Freikorps at the demands to reduce the size of the German Army. Wolfagang Kapp and General Lütwitz decided to exploit the situation. They encouraged 12,000 troops to march on Berlin and seize the capital virtually unopposed, where they installed a new government. The German Army didn’t provide any resistance to this putsch, despite requests from Ebert and the Chancellor to put down the rebellious forces. The putsch collapsed. The SPD members of the government called for a general strike, which paralysed the capital and quickly spread to the rest of the country. After 4 days, Kapp and his government exerted no real authority and they fled the city.

The Kapp putsch

The government of Bavaria was under the control of the ultra-conservative Gustav von Kahr, who blamed most of Germany’s problems on the national government in Berlin. Wished to destroy the republican regime. By October 1923 General von Lossow, the army’s commander in Bavaria, had fallen under von Kahr’s spell and had even begun to disobey orders from the defence minister from Berlin. Both these ultra-conservatives who plotted with Hitler and the Nazis to “March on Berlin'.”

Leaders- Erich von Ludendorff, Gustav von Kahr, Otto von Lossow, Adolf Hitler and Hans von Seeckt.

By the 1st week of November 1923, Kahr and Lossow decided to abandon the plan. On 8th November, Hitler took control of the meeting and declared a “national revolution” under pressure Kahr and Lossow co-operated and agreed to proceed with the uprising. However Seeckt used his powers to command the armed forces to resist the Putsch. When, on the next day, the Nazis attempted to take Munich, they had insufficient support and the Bavarian police easily crushed the Putsch. 14 Nazis were killed and an injured Hitler was arrested on a charge of treason.

The Munich Beer hall Putsch.

There was false confidence in the 1919 elections, as the January elections had resulted in many people voting for a democracy and a centre party, so there was little extremism. However there was opposition to the Weimar government in 1920 as that was when the ToV was signed, and started the “Stabbed in the back” myth and the far right started to grow in support. The extreme left also gained support but not as mush as the right.

How did WW1 weaken democratic Germany

In the 20 years before the war the German economy had grown immensely and it had arguable become the most powerful economy on the continent.

It had extensive natural resources, e.g. coal and iron ore.

An advanced and well developed industrial base, e.g. engineering, chemicals and electric equipment.

A well-educated population, with special technical skills.

An advanced banking system.

It faced fundamental economic problems by 1919 because of the taking away of Germany’s land, or the occupation of it, e.g. the Ruhr, which meant that they were making less money through the resources from those areas.

German economy

The Kaisers government had borrowed massive sums by selling war bonds, encouraged people to invest in government funds, which allowed the national debt to increase. Only 16% of war expenditure had been raised from taxed, 84% had been borrowed. They had to pay reparations to the allies that didn’t help with the debt. Since production was necessarily military based during the war, it didn’t satisfy the growing requirements of the civilian consumers. High demand for, and the shortage of, consumer goods began to push prices up.

Long term causes hyperinflation

The reparations commission added to the economic burden facing the Weimar government as reparations had to be in hard currency like dollars or gold (not inflated German Marks). In order to pay the reparations, the Weimar government proceeded to print larger quantities of marks and sell them to obtain the strong currency of the other countries. Caused the value of the mark to go in to steep decline and inflation climbed even higher.

Deficit financing- created work/jobs and boosted economy, all of the loans.

Medium term causes of hyperinflation

Germany was allowed to postpone reparation payments, and asked to do so again in 1922, which resulted in the 1923 French occupation of the Ruhr, the passive resistance of the strikes caused inflation to increase.

Short term causes of hyperinflation

In the Summer of 1923 the Weimar republic seemed close to collapse. The German currency had collapsed and hyperinflation set in. French and Belgium troops were occupying the Ruhr. The German government had no clear policy on the occupation, except for the passive resistance. There were various left-wing political disturbances across the country: in Saxony the creation of a SPD/KPD regional state government resulted in an attempted communist uprising. The ultra-conservative government in Bavaria was defying the national government, which finally resulted in the Munich Beer Hall Putsch. Yet only a few months later, a semblance of calm and normality returned.

Stresemann’s 100 days

During the summer of 1923 things had just been allowed to slide under chancellor Cuno. The appointment of Gustav Stresemann in August 1923 resulted in the emergence of a politician that was actually prepared to take difficult decisions that were political. He led a broad coalition of DVP,DDP,ZP and SPD and aimed to resolve Germany’s economic plight and also tackle the problem of her weakness internationally.

In September he called of the “passive resistance” in the Ruhr and promised to resume the payment of reparations. He needed to conciliate the French in order to evoke some international sympathy for Germany’s economic position. Under Hans Luther, the finance minister, the government’s expenditure was sharply cut in order to reduce the deficit. Over 700,000 public employees were sacked. The leading financial expert Hjalamar Schacht was appointed to oversee the introduction of a new German currency. December 1923 the trillions of German Marks were replaced with a new stable currency the Rentenmark. He evoked some sympathy from the Allies for Germany by the “miracle of the Rentenmark” and his conciliatory policy. He asked the Allies to hold an international conference to consider Germany’s economic plight, as a result the Dawes Committee was established. Its report, the Dawes plan, was published in April 1924. Didn’t reduce the overall reparations bill, but for the first 5 years it fixed the payments in accordance with Germany’s ability to pay. The extreme right and left were defeated.

Stresemann’s achievements

The Republic didn’t collapse during the crisis ridden months before Stresemann’s emergence on to the political scene because: Popular anger was directed more towards the French and the Allies then towards the Weimar Republic its self. Despite the effects of inflation, workers didn’t suffer to the same extent as they did during the mass unemployment on the 1930s. Some businessmen did very well out of inflation, which made them tolerant of the Republic.

Although there was distress and disillusionment in 1923, hostility to the Weimar Republic had not yet reached unbearable levels. In 1923 there wasn’t an obvious political alternative to the Weimar. The extreme left hadn’t really recovered from its divisions and suppression in the years 1918-21, didn’t have enough support to overthrow the Weimar. The extreme right wasn’t yet strong enough, they were similarly divided and had no clear plan. The failure of the Kapp Putsch served as a clear warning of taking hasty action and was possibly the reason why the army made no move in 1923.

The survival of the Weimar

Businessmen and homeowners, which included members of the middle-class. Those who recognised the situation for what it was exploited it by making massive gains from buying up property from those financially desperate. Any German who has money invested in a bank account with interest rates found its real value had eroded. Millions who had invested in war bonds couldn’t get their money back, they were worth nothing.

Mortgage holders borrowed money was easily paid off in valueless money. Savers money invested was eroded. Exporters sales to foreign countries were attractive because of the rate of exchange. Those on fixed incomes as income decline in real terms dramatically. Recipients of welfare depended on charity or state. Payments fell behind the inflation rate. Long term renters/landlords income was fixed in the long term and it declined in real term. The German state large parts of the government debt were paid off in valueless money (not reparations). Mittelstand including shopkeepers and craftsmen also seem to have done reasonably good business, especially if they were prepared to exploit the demands of the market.

Winners and losers of hyperinflation

The mortality rate of the larger towns increased, mainly because of the deteriorating diet, which lead to diseases like scurvy and dropsy. There was a decline in law and order and an increase in crime. A decline in mortality e.g. more sex work. A growth in the number of suicides an increase in prejudice and tendency to find scapegoats e.g. Jewish people. Such social problems could have contributed to people’s lack of faith in the republican system.

The human consequences