History 12 Ms Leslie

 Country devastated after WWI  The population was starving due to British blockades, the navy mutinied and people rioted in the streets.  The Kaiser, Wilhelm II, abdicated his throne on November 9, 1918, and ran off to Holland

 With Kaiser gone, Germany becomes a Republic  Called the Weimar Republic.  The first president of the new republic was Friedrich Ebert, a socialist.

 Universal suffrage was given to determine the Reichstag (lower house). proportional representation made it hard to get a majority government  The Reichrat (Upper house) was made up of representatives of the states. They could delay legislation but little else.  The Executive - President elected every 7 years - largely a figurehead. Did have more power in times of emergency  The Chancellor was appointed by the President and headed the Cabinet General elections every 4 years

 Because Ebert signed the Treaty of Versailles, the Weimar republic will always been associated with defeat and humiliation.  Hitler would refer to those responsible for the treaty as ‘November Criminals’.  The Weimar Republic also saw support from the Socialists, the Catholic Center Party and the Democratic Party.

 an organization of ex-servicemen who were violently opposed to communism.  Put down Spartakist uprisings  March 1920, Workers in the Ruhr Valley formed the “red army” of 50,000 and went on strike. The Freikorps put them down, killing 2,000 workers. Frei Korps

 The Berlin Police, the Freikorps and elements of the army supported Wolfgang Kapp, the leader of the conservatives, in his attempt to seize control of the government.  This coup failed when the workers of Berlin called a general strike, brining the whole city to a stand still.  The rebels were tried in court and given light sentences, as most judges detested the government. Kapp Putsch of 1920

 a plotted revolt or attempt to overthrow a government, esp. one that depends upon suddenness and speed.  Like a ‘coup’ Putsch

 Nov During the occupation of the Ruhr  Adolph Hitler, attempted to seize control of Bavaria  Hitler had started the Nazi Party and had the Support of WWI commander General Ludendorff and Captain Ernest Rohm and his SA men.  The goal of the Beer Hall Putsch was to make Bavaria his base for overthrowing the Weimar republic.

 Hitler and his Nazi’s stormed the Beer hall and kidnapped the governor of Bavaria and made him swear allegiance to Hitler.  The next day Hitler and the Nazis marched on to the Government building in confidence that having Ludendorff by this side would win over the army.  Hitler was wrong and the military opened fire. Hitler was arrested and served 6 months in jail. - Wrote Mein Kampf

Reparations  The final figure was $33 billion (modern)  to be paid as 26% of the value of German exports. - meaning the more $ they make they more they have to pay  The famous economist John Maynard Keynes wrote a famous book The Economic Consequences of the Peace, in which he argued that Germany couldn’t pay the full sum as the treaty deprived her of industry.

o France wanted the whole amount paid. France did not want Germany recovering faster than she. o Lloyd George thought the figure was unrealistic but had adopted the policy of “make Germany pay”

o Russia owed Britain, and refused to pay o France and Belgium Owed money to Britain o All of the allies owed the USA $10 billion o Britain suggested war debts be cancelled, like after the Napoleonic wars. o America wanted full payment

o Britain, France, Belgium and Italy counted on German Reparation payments to pay back USA. o the Allies could only make payments if Germany did. o 1922 Germany asked for a hold on payments as they were broke

o Poincare, the French Premier, didn’t care about Germany’s financial problems. He claimed Germany intentionally devalued its mark to avoid payments. Germany industry was profitable and unemployment low. o The Reparations committee - Britain, France, Belgium and Italy voted 3 to 1 to occupy the Ruhr o Jan 11, 1923 France and Belgium occupied the Ruhr Region. o The Ruhr region holds 80% of Germany’s coal and steel industries.

 Germans could do nothing due to disarmament.  The government ordered passive resistance  So the Railway workers refused to take French orders. Other workers committed acts of sabotage and little was gained from the occupation.  With industry at a stand still Hyperinflation begins

 prices were rising tenfold or a hundredfold in a day. Money could not be printed fast enough.  In 1919 the exchange rate was $1=8 marks, in 1921 $1=250 marks, in 1922 $1 = 2000 marks.  At it’s worse 1 pounds = 50 billion Marks  People hoarded food and other goods since a pound of butter might cost 100,000 marks in the morning but 500,000 marks in the afternoon.

 Hyper inflation caused the German government to collapse.  A new government was formed by Gustav Stresemann  To help stabilized the economy a new currency was created, the Rentenmark.

Obviously the German economy needed help, American Banker Charles Dawes came up with a 5 point plan 1. The Ruhr was evacuated - gone by German government should pledge revenue towards reparations 3. Gradually rising annual payments starting at $250 million and then rising to $600 million (Much better then $2 billion!) The Dawes Plan

4. Payments to be tied to prosperity 5. Foreign loans of $200 million offered to get Germany started o did nothing to address the larger question of whether or not Germany could actually pay the total amount

Introduced at the start of the depression Another American Banker 1. Cuts reparations to a total of $29 billion, including interest 2. Payments stretched out for 59 years (Until 1988) 3. Allied occupation of the Rhineland was to end

 defaulted on payments due to depression  Lausanne Conference set the new total at $750 million  1937 Hitler cancels reparations  Total actually paid - $5 billion

 Germany was accepted back into the international community.  This was due to the leader of the People’s Party, Gustav Stresemann, who was chancellor for 3 months in 1923 and then Foreign minister until his death in  He ordered workers back to work in the Ruhr and started paying the French.  He borrowed 800 million marks from the USA in the Dawes plan and negotiated the reparations down in the Young Plan.

 In 1925 became friendly with Soviet Russia.  1922 Treaty of Rapollo was signed with Russia (secret German flying and tank schools in Russia)  Gave up claim to Alsace-Lorraine to improve relations with France.  Signed an agreement with Poland and Czechoslovakia  1926 Germany allowed to join the League of Nations.  Economic prosperity meant less threat of communism and Nazism. Germany’s International Status

 Germany lacked a competent leader to guide them through the depression.  USA called back their loans; bankrupting the country.  New chancellor, Bruning, responded to the economic crisis by cutting welfare benefits, the socialists pulled out of their coalition and Bruning no longer had a majority in the Reichstag After Stresemann’s Death

1. Germany was a new democracy - the people weren’t used to it 2. Associated with Versailles 3. Associated with inflation - those who lost their money blamed the Weimar 4. Proportional representation means no one could get a majority