Recovery and Stability (1924-1929)

Question 1

How did Stresemann cope with hyperinflation?

Answer 1

• appointed Schacht as Reich Currency Commissioner.
• called off passive resistance as it had not persuaded the French to leave the Ruhr (unpopular with the right who believed Stresemann had given in to the French).

Question 2

What did Hjalmar Schacht do?

Answer 2

• introduced a new currency, the Rentenmark, in November 1923 that was backed by Germany’s industrial performance.

Question 3

What was the Dawes Plan?

Answer 3

• 1924
• Germany was to receive an 800 million Marks loan from the USA to allow Germany to invest in infrastructure.
• right wing Germans were critical of the Dawes Plan, mostly because they hated the notion of paying reparations.

Question 4

What was the Young Plan?

Answer 4

• 1929
• Germany was to pay 2000 million Marks a year, rather than 2500 million Marks annually.
• Allied controls over Germany’s railways and banking systems were dropped, allowing Germany to regain its economic sovereignty.
• if Germany agreed to the Young Plan, the French promised to leave the Rhineland by mid-1930, five years ahead of schedule.
• Nationalists, who rejected the concept of paying reparations, opposed the Young Plan and in July 1929, DNVP leader, Hugenburg, formed the Reich Committe for a referendum against the YP; the actual results were a disaster as only 5.8 Germans voted against the YP (much less than the 21 needed) but it enabled the Nazi Party to break into the political scene for the first time since 1923; by associating with the Nationalists, Hitler gained respectability and came into contact with wealthy and influential people would could be of great material help to the Nazi Party; Hitler also got access to Hugenburg’s media empire (48 newspapers).

Question 5

How did the Dawes and Young Plans help the German economy?

Answer 5

• the loans helped to provide new machinery, factories, houses and jobs.
• pensions and wages rose.
• there was renewed financial confidence and optimism with Germany.
• many US firms set up factories in Germany.
• exports increased, and by 1928, Germany was the world’s second strongest industrial power.

Question 6

How had the economy improved between 1924-1929?

Answer 6

• there was monetary stability.
• significant influx of foreign capital of 25.5 billion Marks (foreign investors were attracted to Germany because of the relatively high interest rates).
• by 1928, production levels generally exceeded those of 1913; this was the result of more efficient production and techniques within the coal mining and steel industries.
• number of cartels increased; by 1925, there were 3,000 cartels in operation.
• between 1925-1929, German exports rose by 40%
• heavy industry made a recovery, despite the loss of resources (by 1927, coal production was at 79%, iron 68% and steel 86% of their pre-1913 levels); Vereinigte Stahlwerke controlled 36% of coal industry, 40-50% of the iron and steel industries.
• electrical industry continued its expansion and Siemens had a virtual monopoly.

Question 7

How had the economy worsened between 1924-1929?

Answer 7

• the German economy grew by just 4% annually.
• unemployment never fell below 1.3 million, and reached 3 million by February 1929 (this was 14.5% of the total workforce).
• the fall in world prices (mid-1920s) placed a great strain on farmers (who made up 1/3 of Germany’ population) and by the late 1920s, Germany’s per-capita income in agriculture was 44% below the national average.
• after 1923, farmers faced heavy taxes on landed property; they were forced to buy fertiliser, machines, seeds and stock so most farmers were in debt; Germany saw a number of natural disasters (floods, hail and an outbreak of foot and mouth disease) which harmed farmers.
• wage levels rose excessively without sufficient levels of productivity; both the introduction of compulsory wage arbitration, and the higher employer contributions for social insurance increased production costs, owing to lower levels of investment and sluggish economic growth.

Question 8

Was Hindenburg a threat to the Weimar Republic?

Answer 8

• Ebert died in 1925 and Hindenburg became President of the WR with 48.3% of the vote.
• Hindenburg accepted the WR and did not set out to destroy it; he took up responsibility for his office, and performed his tasks correctly.
• his military status gave the WR an added authority.
• he was not a democrat (like Ebert) and never identified himself with the WR.
• he preferred authoritarianism and wanted the return of the monarchy.
• he had effectively been a military dictator of Germany in 1916-1918 under the ‘Silent Dictatorship’ with Ludendorff.
• by the 1930s, Hindenburg lacked the strength, will or determination to put up a stance against Nazism and pronounced Hitler as Chancellor in 1933 due to him being easily manipulated by Papen and Schleicher.

Question 9

How politically stable was the Weimar Republic in the years 1924-1929?

Answer 9

• these were regarded as the ‘Golden Years’ as Germany had economic stability.
• in the favourable socio-economic circumstances, the Weimar Republic had managed to stabilise its political position.
• there were no putches from the left or right wing.
• in the may 1924 elections, the radical left and right parties made significant gains; the DNVP (campaign contained the rejection of the Dawes Plan) won 20% of the vote and became the second largest party in the Reichstag; the Communist Party, KPD, won 12% of the vote.
• by December 1924, the economy was showing signs of recovery as unemployment was falling and wages were raising; the SPD gained more votes and the Nazi vote fell by half.
• in the improved economic climate from 1924, extremism on both the left and right declined.
• in 1924, a new Republican paramilitary organisation (Reichsbanner) was formed and its demonstrations and propaganda encouraged Germans to celebrate the new Republic.
• in the 1928 elections, extremist parties’ votes struggled to wield any influence as they polled less than a 1/3 of the total votes (the Nazis won 2.6% of the vote); parties that were sympathetic to the WR generally maintained their share of the vote.
• the SPD remained the largest party in the Reichstag and objected to joining a coalition government.
• the WR had 7 governments between 19249-1930, and the longest lasted 21 months.
• the 1925 Presidential election saw Hindenburg win with 48.3% of the vote; this was seen as a vote against the Republic due to his monarchist ties.

Question 10

How did the position of the working class change in Weimar Germany?

Answer 10

• state socialism and more progressive taxation; 8-hour working day (1918), war victims benefits (1920), and extended protection to workers (1927).
• the Dawes Plan led to improvements in hospitals and buildings.
• 178,000 affordable buildings were built in 1925; Ernest May developed a large-scale family housing complex in Frannkfurt.
• real wages increased by 9% in 1927 and 12% in 1928.
• ownership of radios, telephones and cars increased; radio broadcasts, newspapers and magazines provided an alternate leisure activity and helped to broaden minds.
• dance halls became popular; libraries and swimming pools were built.
• 500 cinemas in Germany by 1929.
• spectator sports boomed; the ATSB expanded its offering and soon had a membership of 1 million across 600 clubs.
• the readjustment to civilian life was hard following the war.
• workers were having to be paid twice daily to cope and those who saved or lived off pensions suffered as money was worthless.
• the welfare provisions offered provided a heavy burden to the state and in 1923, it nearly collapsed; the scheme was hated by the elites (whom it taxed) and the artisans (who deemed the urban workers unskilled and socially inferior).
• the Dawes Plan typically boosted the economies of cities and rural areas were left to struggle.

Question 11

How did the position of women change in Weimar Germany?

Answer 11

• women were given formal equality in the Reichstag; 111 elected representatives.
• the overall number of women in employment rose from 31.2% in 1907 to 36.5% in 1925; the number of women going into higher education increased and there were more female nurses and doctors.
• women had more sexual freedom and families became smaller as methods of contraception became cheaper and more widely available.
• political parties on both the left and right believed that the proper place for a woman was the home and that they should stop working once married to have children.
• even the BDF (feminist organisation) encouraged women to undertake social work as it was more fitting to their inherent, natural qualities.
• there was active resistance to women in the workplace; many were employed so that employers could get away with lower pay.
• the better-paid jobs that women had in the factories during the war were taken back by men once they returned.
• the proportion of women who worked outside the home during the 1920s remained the same as it had been during 1914.
• abortion remained illegal until 1927; it was not permissible to advise contraceptives until 1926.

Question 12

How did the position of the elites and miliatry change in Weimar Germany?

Answer 12

• all titles and legal privileges were removed.
• the elites turned their support to the radical right (DNVP and Nazis).
• the elites managed to preserve themselves as an exclusive class; the aristocracy managed to maintain its hold on the land and keep it as the central pillar to their identity.
• behavioural patterns continued to be shaped by elitist education and marriages were made between those in the same social class.
• the restrictions made in the ToV should have reduced the military’s influence, but this did not happen due to the Ebert-Groener Pact and the long-standing belief in military superiority which had become so entrenched during the Kaiserreich that it was difficult to eradicate.
• the Reichstag was not allowed to restrict the army’s activities and the military budget was increased by 75% between 1924-1928; recruitment into the army was largely restricted to those of nationalist and elitist backgrounds.

Question 13

What changes were made to German culture during the Weimar Period?

Answer 13

• during the 1920s, Germany became a leading figure in architecture due to the Bauhaus movement and the works of Gropius.
• literature and theatre became modernised and critical; ‘All Quiet on the Western Front’ was a best-selling book critical of WW1 and Bertolt Brecht’s theatre was agitprop (agitation and propaganda) to create an involved and activist audience.
• visual art showed the horrors of war, social hypocrisy and the plight of the poor.
• Berlin was developing as the centre of mass cultural production in journalism, film and fashion.
• Germany became increasingly influenced by the USA with jazz music.
• in 1928, 300 million cinema tickets were sold to people of all classes.
• theatre attendances recorded 12 million in 1926-1927

Question 14

What opposition was there to the cultural changes made to Weimar Germany?

Answer 14

LEFT WING:
- the SPD was just as concerned about the impact of pulp fiction on the young.
- were dubious about many aspects of mass commercial culture.

RIGHT WING:
- many conservatives believed that Weimar’s cultural life had been debased by foreign and Jewish influences.
- the far right and Nazis believed that the ‘avant-garde’ nature was threatening the authentic German culture by ‘Americanisation’.
- the change was labelled as the ‘tides of filth’ and the Reichstag passed a bill in 1926 which aimed to protect the youth from pulp fiction and pornography and it banned to publication of 130 books.