Chapter 9 Flashcards

1
Q

What happened in the Wall Street Crash?

A

On 24 October 1929, the New York Stock Exchange experienced its worst ever fall in share prices in an event that became known as ‘Black Thursday. This was followed by another collapse the following Tuesday, on 29 October. On that one day alone, the value of the largest American companies fell by ten billion dollars. Overnight, millionaires lost their fortunes and many smaller investors lost all their savings. Many companies went bankrupt, workers lost their jobs, and banks stopped lending and called in their existing loans. This was the start of a prolonged depression, which spread from the USA around the world. For Germany the Wall Street Crash had a profound impact on its economy, its society and its political system.

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2
Q

Economic effect of Wall Street Crash on Germany

A

The German economy had been stagnating since 1928 as investment decreased. Germany’s economic recovery in the years 1924-28 had been largely financed by American loans but, in the aftermath of the Wall Street Crash, those loans dried up. To make matters worse, the American banks that had lent money to Germany on short-term loans demanded immediate repayment. Thus, at a time when the German economy needed more investment to stimulate the economy, money was being withdrawn. The USA had also been the largest overseas market for German manufactured goods, but the Depression drastically reduced demand for imported goods in the USA and Germany’s export trade declined rapidly. Between 1929 and 1932, Germany’s export trade declined by 61 per cent and its industrial production fell by 58 per cent of its 1928 level. The result was that the German economy entered a deep depression.

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3
Q

Effect of the Depression of German industrial production

A

The Depression affected other countries as well, but Germany suffered a greater fall in industrial production than other European countries. In Britain, for example, the decline in industrial production between 1929 and 1932 was 11 per cent.

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4
Q

Effect of Depression on trade and companies

A

As Germany’s foreign trade collapsed and prices fell, many companies had no alternative but to declare themselves bankrupt and make their workers redundant. Even those companies that survived had to reduce their workforces and cut the hours and wages of those workers who continued working. Banks also began to get into difficulties as customers withdrew their money and outstanding loans were not repaid.

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5
Q

Impact of Depression on banks

A

Following the collapse of an Austrian bank in May 1931, the German banking system was plunged into crisis. In July 1931, the government closed the banks and the stock exchange for two days to provide the financial system with some breathing space, but these measures gave mere temporary respite. The Depression deepened, became more prolonged and economic conditions for millions of Germans became more desperate.

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6
Q

Impact of Depression on unemployment rate

A

Unemployment increased. By 1932, about one third of all German workers was registered as unemployed. These official figures did not, however, reflect the true scale of unemployment since they only recorded those who registered as unemployed. Many redundant workers, especially women, did not register and so were not counted. It has been estimated that in January 1933, the true number of unemployed was about eight million.

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7
Q

Who did unemployment hit worst?

A

The impact of the Depression fell very heavily on the main industrial areas, such as the Ruhr, Silesia and the main port cities such as Hamburg. White-collar workers were also badly hit. In the civil service, here were severe cuts in the workforce and reductions in the salaries of those who remained.

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8
Q

Wall Street Crash

A

the sudden collapse of the stock market in New York in October 1929 after a long period of rising prosperity and overconfidence by investors

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9
Q

Effect of Depression on farmers

A

Farming was also very badly hit by the Depression. Farmers had struggled gren during the so-called golden age between 1924 and 1928, but the Depression pushed many of them into serious difficulty. Prices collapsed, sports of agricultural produce declined and sales of food fell as Germans had as money to spend. Many more farmers were forced to give up their farms
“ the banks demanded repayment of loans. Unemployment spread to the countryside as farm labourers lost their jobs.

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10
Q

Areas impacted socially by Depression

A

People: workers, women, the young
Poverty

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11
Q

Poverty caused by the Depression and benefits situation

A

Mass unemployment had a highly corrosive effect on German society. Although the Weimar Republic had a well-developed system of unemployment and welfare benefits, the costs very quickly overwhelmed the welfare budget and, from 1930, there were moves to limit the amount of benefits being paid. The unemployed were only entitled to state benefits for a fixed period, after
Fig. 2
which they had to apply to local authorities for relief, and local benefits were less generous and strictly means-tested. Women received less benefit than men and young people less than adults. Some areas were hit harder than others by the Depression. In towns that depended on a single industry, the impact was far worse than in towns with a more diverse economy.

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12
Q

Effects of the Depression on Brand-Erbisdorf

A

For example, the small town of Brand-Erbisdorff near Dresden was a centre for glass-making. By April 1931, after the local glassworks had closed, nearly half of the population was receiving welfare payments. However, since most of the unemployed had been out of work for at least two years, they no longer qualified for state unemployment benefits. Instead, they had to rely on the much less generous relief provided by the local authority. A visitor to the area in 1930 reported that: Everywhere, I came to: increasing poverty, increasing bitterness, increasing doubt; a world of impoverishment and hunger and exploitation. I got to know Germany from below’.

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13
Q

Impact on living conditions of Depression

A

There were many indications that poverty was rising as a result of the Depression. Diseases linked to poor nutrition and living conditions - such as tuberculosis and rickets - began to show an increase after a period of decline.
Doctors reported numerous cases of malnutrition among children. The suicide rate increased as hope for the future disappeared. Meanwhile, as unemployed tenants were unable to pay their rents and were evicted, tent cities and shanty towns began to appear on the edges of large cities such as Berlin.

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14
Q

What was a Shanty town?

A

rough shelters built without official permission in areas with no access to running water or gas and electricity supplies; they were inhabited by the poor, especially those who no longer qualified for benefits

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15
Q

Difference between male and female unemployment rates

A

The difference between the unemployment rates of males and females was partly because women were less likely to register as unemployed and partly because some traditional female occupations in service industries were less affected by the Depression than traditional male occupations in manufacturing and transport.

Plus women cheaper to employ

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16
Q

Poverty diets

A

An American journalist, Hubert Knickerbocker, who travelled through
Germany during the Depression, reported on the average family’s diet. He said that the daily meal for an average family consisted of six small potatoes, five slices of bread, a small cabbage and a knob of margarine. Each adult could expect to eat a herring on about three Sundays in every month. Meat rarely figured in the diet. He expressed the view that this diet was too little to live on but too much to die from.

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17
Q

How did the Depression affect youth employment and why was it a problem?

A

The Depression led to a high rate of unemployment among young people. In Hamburg in June 1933, for example, the unemployment rate among males in the
14-25 age group was 39 per cent, whilst among females it was 25.2 per cent. Such high rates of youth unemployment had a number of consequences. With no jobs, and little prospect in the foreseeable future, gangs of young men congregated in public spaces in German towns and cities, their very presence causing alarm among older, middle-class citizens. There were fears that youth involvement in crime was increasing and that young men were being drawn into extremist political organisations.

Find stat

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18
Q

Juvenile crime

A

Although the overall rate of juvenile convictions did not increase during the Depression, the number of 14-25-year olds accused of crime did increase.
The number of young men charged with theft grew during the Depression years but there was also a significant increase in youths charged with offences against the state and with assault and threatening behaviour: Offences against the state included participating in violent disorder during political demonstrations and the rise in these offences undoubtedly reflected the deteriorating political situation.

19
Q

Stat on juvenile crime rate increase

A

.

20
Q

Political extremism amongst the yourh

A

The involvement of young men in extremist political organisations increased during the Depression. The KPD, for example, had some success in recruiting working-class youths from the wild cliques to join political demonstrations and engage in street battles with their opponents. The paramilitary organisations of the nationalist right also set out to recruit unemployed youths. Organisations such as the Hitler Youth and the SA (Nazi Stormtroopers) offered unemployed boys and young men food, uniforms, shelter and the excitement of fighting street battles, all of which could relieve the insecurity and boredom of unemployment. Youth membership of these organisations, however, was not stable and the majority of young unemployed males still had little or no contact with the political extremes. Girls and young women were even less involved.

21
Q

Schemes to help the young unemployed

A

This letter reflected the policies of Bruning’s government towards the unemployed. Placing their faith in market forces to revive the economy at some time in the future, the government’s priorities were to keep control over expenditure on unemployment benefit and to lessen the damaging effects of unemployment on the young. To this end, they established day centres for young people where they could participate in work-related activities and socialise. There were also emergency labour schemes in which unemployed youths were required to undertake unskilled manual labour, receiving wages that were below the legal minimum. Needless to say, these schemes were unpopular with young people, resulting in two waves of strikes for higher wages in October 1930 and June 1932. In addition to the compulsory schemes, there were voluntary labour schemes, which involved young unemployed people being sent away from the cities to residential work camps for periods of six months. Few of these schemes offered any prospect of vocational training, still less of finding permanent employment. As the Minister of Labour’s letter said, the priority was to get the young unemployed ‘off the streets’.

22
Q

Impact of Depression on women

A

In some ways, women workers weathered the effects of the Depression better than their male counterparts. The female proportion of the total workforce increased during the Depression years. Nevertheless, the onset of depression and the dismissal of many millions of workers from their jobs reignited the debate about whether married women should continue to be employed when males were out of work. The campaign waged by right-wing parties against the employment of so-called double-earners achieved some success in May 1932 when a law was passed allowing married women civil servants to be dismissed. Although the extent of the law was limited to central government employees and women could only be dismissed if it could be proved that their economic circumstances were secure, this was nevertheless an important symbolic victory for those who believed that a married woman should not be employed outside the home. After the law was passed, the Reich Postal Service dismissed about 1000 married women from its employment. The cause of equal rights for women, therefore, suffered a serious setback during the Depression.

23
Q

KEY CHRONOLOGY of political impact of Depression

A

1929 October
Wall Street Crash
1930 March
Collapse of Müller’s Grand Coalition government
Brüning appointed as Chancellor
September
Reichstag election - major gains by Nazis and communists
1931
May
Collapse of an Austrian bank
July
Financial crisis in Germany
1932 April
Ban on Nazi SA
Hindenburg re-elected as President
Мау
Brüning resigns and is replaced by Papen as Chancellor
July
Reichstag election - Nazis become the largest party

24
Q

Overall consequences of the strains on the political system caused by the Depression (3)

A

. It caused the collapse of the Grand Coalition, led by Hermann Müller, in March 1930.
. It provided an opportunity for the parties of the extreme left and extreme right to gain support and, in so doing, fatally undermine the democratic system.
. It led to an intensification of political violence.

25
Q

Why did the Grand Coalition collapse?

A

The Grand Coalition was one of the most broadly based coalition governments in the Weimar period, representing five political parties from the SPD on the left to the moderate right wing in the form of the DVP. Therein lay both its strength and its weakness. After the Wall Street Crash, in October 1929, unemployment soared and the rising cost of unemployment benefit placed a severe strain on state finances. With falling tax revenues adding to the problem, the state budget was in serious deficit by the end of 1929. This split the coalition. On the right, the DVP wanted to reduce unemployment benefit whilst, on the left, the SPD wanted to protect the level of benefits and raise taxes. The government was deadlocked on the issue and, in March 1930, Müller resigned.

26
Q

Who came to power after Miller’s resignation?

A

His successor, appointed by Hindenburg, was Heinrich Brüning, leader of the Centre Party. Hindenburg’s decision to appoint Brüning was heavily influenced br two key military figures - General Groener, who since 1928 had been the Defence Minister, and General Kurt von Schleicher, Groener’s political adviser.
Their role in the appointment was an indication that the army had begun to plav a key role in politics. Both men were opposed to parliamentary democracy and saw the political crisis of March 1930 as an opportunity to begin to impose a more authoritarian style of government. In President Hindenburg, they had a Jeader who shared their contempt for democracy (but respected the constitution) and in Brüning they had a Chancellor who also had authoritarian leanings.

27
Q

How did democracy erode under the coalition?

A

Bruning’s coalition excluded the SPD, the largest party in the Reichstag, which meant that his government did not have enough support in the Reichstag to pass laws. After March 1930, no government had majority support in the Reichstag and governments had to rely on ruling by presidential decree. Even before Hitler was appointed Chancellor in January 1933 and began to establish a Nazi dictatorship, Weimar democracy was effectively dead in the water.

28
Q

Who was Kurt von Schleicher?

A

Kurt von Schleicher (1882-1934) was an aristocratic army officer. During the early years of the Weimar Republic, he played a crucial role in the political activities of the army, helping to negotiate the Ebert-Groener Pact and handling negotiations with the USSR on the building of German arms factories in Russia. After 1926, he was effectively the political head of the army. Together with General Groener, he was part of Hindenburg’s inner circle of advisers and helped steer Hindenburg towards imposing a more authoritarian style of government.
Although not a Nazi himself, he saw the Nazis’ mass support as the most effective counterweight to the popular support for the SPD and KPD, and looked for ways to work with Hitler He was a master of political intrigue and was largely responsible for later bringing down Brüning’s government in May 1932. Despite his attempts to work with Hitler, he was murdered by the Nazis in 1934.

29
Q

Who was Heinrich Brüning?

A

Heinrich Brüning (1885-1970) was a financial expert and leading member of the Centre Party in the Reichstag. He had not held any ministerial office before becoming Chancellor in 1930, but became the longest continuously serving
Chancellor of the Weimar Republic.
He was a controversial figure.

30
Q

Number of laws passed by Reichstag vs by decree 1930-32

A

Laws passed by Reichstag
1930: 98
1931: 34
1932: 5
Laws passed by decree
1930: 5
1931: 44
1932: 66

31
Q

What caused an election to come about in September 1930?

A

Bruning’s response to the Depression was to cut expenditure and raise taxes, in order to balance the budget. Since he did not have majority support in the Reichstag. he persuaded Hindenburg to issue a presidential decree passing the budget into law. This provoked another political crisis, since Article 48 of the constitution was only supposed to be used in an emergency, not for the conduct of normal political business. The SPD won Reichstag support for a motion demanding that the decree be withdrawn. Brüning dissolved the Reichstag and called an election in September 1930. The result of this election completely changed the political landscape in Germany.

32
Q

Which political wings gained the most in the Sep 1930 election?

A

The extremist parties of the left and right gained the most in the 1930 election.

33
Q

Communist increased support in Sep 30 election

A

The communists gained over a million votes, mostly from the SPD, and 77 seats in the Reichstag.

34
Q

Growth in Nazi support in Sep 1930 election

A

Far more significant, however, was the growth in support for the Nazi Party. In 1928, the Nazis had received a mere 810,000 votes, whereas in September 1930, they gained nearly 6.5 million votes and their representation in the Reichstag increased from
12 to 107 seats, making them the second largest party.

35
Q

Significance of Sep 1930 election result for Nazis

A

From this breakthrough in September 1930, support for the Nazis continued to grow. Moreover, with 107 deputies in the Reichstag, the Nazis now had the opportunity to disrupt its proceedings through chanting, shouting and interrupting.

36
Q

How much support for anti-democratic parties in Sep 1930 election?

A

In the election as a whole, two out of five voters gave their support to anti-democratic parties.

37
Q

Importance of Reichstag after Sep 1930 election

A

As the Reichstag became unmanageable, its proceedings became increasingly irrelevant. It did not meet at all between February and October 1931 and, even after that, its sessions became shorter and more infrequent. Political power in Weimar Germany had shifted from the Reichstag to the President and his circle of advisers, but also to the streets.

38
Q

SPD deputies 1928-30

A

.

39
Q

Political violence pre-1930

A

The early years of the Weimar Republic, between 1919 and 1923, had seen frequent riots, political assassinations and political uprisings. During the years
1924-29, the violence had subsided but not completely disappeared: the Nazis claimed that 29 of their men had been killed in clashes with communists, whilst
the communists said that 92 of their supporters had been killed.

40
Q

Political violence 1930-33

A

In the years 1930-33, however, the level of political violence increased dramatically Nazis and communists, the latter with their Red-Front Fighters’ League, took their political struggle onto the streets.
Each side attempted to break up the political meetings of their opponents and rival marches often degenerated into full-scale riots. The violence was particularly severe at election times.

41
Q

Reported deaths from political violence 1930-31 vs first six months of 1932

A

155 vs 159

42
Q

Gov attempts to lessen political violence and success

A

By the end of 1931, the violence had become so intense that Brüning decided to act. He issued a decree in December 1931 banning the wearing of political uniforms, but this had little effect since the Nazi Stormtroopers (SA) continued to march wearing white shirts. In April 1932, therefore, Hindenburg was persuaded to sign a decree outlawing the SA. Even this ban, however, failed to curb the activities of the Stormtroopers. Their membership continued to grow and political violence was not brought under control. By the end of 1932, the SA was estimated to have 400,000 members.

43
Q

Summary

A

The Depression, which began with the Wall Street Crash in 1929, had a devastating effect on German society and political life. Although the worst economic and social effects of the Depression did not appear until 1931 and 1932, the rise in unemployment placed an intolerable strain on the fragile consensus in the Grand Coalition and it collapsed in March 1930. The election of September 1930 showed a maior increase in support for the extremist parties of the right and left, which rendered the Reichstag unmanageable and increasingly irrelevant.
Long before Hitler came to power in January 1933, authoritarian government had been reinstated in Germany and Weimar democracy was effectively dead.