Summary 2 : Germany 1919-1923/4

Question 1

the legacy of the kaiserreich?

Answer 1

• the war had been financed by borrowing and printing money (govt debt grew and value of mark fell)
  -infaltion : in 1920 the mark was with 10% of its 1914 value
• reparations

Question 2

what was the cost of the war?

Answer 2

national debt in 1913:5,000 million marks
in 1919:144,000 million marks

Question 3

how did the weimar constitution choose to deal with the financial consequences of the war?

Answer 3

deciding they couldn’t risk further unpopularity they refused to raise taxes or cut spending, most significantly this led to more inflation

Question 4

what were the benefits to inflation?

Answer 4

• industrialists benefitted by taking out short term loans, by the time they had to pay it back the value of the money borrowed had significantly fallen
• the burden of govt debt was lessened by inflation

Question 5

what where the terms of reparations made in 1921?

Answer 5

a total of £6.6bn or 132 marks to be paid in annual instalments

Question 6

what were the political Impacts of reparations?

Answer 6

the new govt under Wirth saw no alternative other than accepting the terms (the first payment was the begginign of the fulfilment policy) but by jan 222 Germany was asking for 1st postponement,then in July.
- by Nov 22 Germany asking for loan to help pay obligations (France increasingly suspicious)

Question 7

what were the economical impacts of reparations?

Answer 7

DID NOT CREATE ECONOMIC PROBLEMS ONLY INCREASED THEM
- harder for govt to pay debt
- payments in coal difficult as T of V had taken reserves and Saar area
- merchant fleet had been confiscated by allies so difficult to earn money through exports
- govt resorted to printing more money (adding to inflation pressures)

Question 8

what happened during the Ruhr occupation?

Answer 8

jan 23:french and Belgium occupied the Ruhr after Germany missed a reparation payment
- up to 100,000 men occupied German soil/factories/mines/steelworks and railways
- German military response impossible so govt of Wilhelm Cuno ordered passive resistance and the German workers in the Ruhr went on strike, this stopped the French seizing coal and steel (briefly uniting the Germans in resisting foreign invaders)
- however this put huge pressure on the German economy as the govt promised to continue to pay workers
- the French response escalated eg military courts and violent police confrontations

Question 9

what were the economic effects of the Ruhr occupation?

Answer 9

• paying workers further drained govt resources (had to print more money which caused inflation to accelerate resulting in hyperinflation)
• Germany had to import coal (draining valuable foreign currency reserves)
• shortage of goods added to inflation as prices rose
  – the combined cost was x2 that of the annual reparations payment

Question 10

what were the causes of hyperinflation?

Answer 10

• had grown since 1914 as the Kaiser didn’t want to increase taxes to pay for war so massive sums of money were borrowed through war bonds and by increasing the national debt
• there was an assumption that the Germans would win and would be able to changer the losers high reparation to pay off their debts
• the new weimar govt was faced with a financial mess which would need to be tackled by cutting expenditure or increasing taxes, neither were attractive options as it would alienate support for the new republic so they opted to pursue a policy of DEFICIT FINANCING (funding govt spending by borrowing more) - BAD idea as increased inflation
• so reparations were a contributing factor but not a cause

Question 11

winners of hyperinflation?

Answer 11

• black marketeers
• those with debt (they could pay of loans/mortages with inflated, worthless money)
• entrepreneurs:took out new loans to establish a business and easily paid it off with worthless money later
• owners of foreign exchange (kept its value)
• farmers coped well as they could produce food and barter (avoided using money and didn’t need to buy)
• the very poor as they had little to loose

Question 12

losers of hyperinflation?

Answer 12

• the middle class (mittlestand) were most significantly hit as their savings became worthless and many had invested in war bonds they never got fully back (their faith in democracy was badly shaken)
• pensioners (living on fixed income) lost out because their income bought less
• workers as wages couldn’t keep up with inflation,by the end of 1923 only 30% of workers employed
  -inceasing cases of malnutrition and dietary diseases like rickets reported in children

Question 13

did hyperinflation pave the way for the collapse of the Weimar Republic?

Answer 13

the inflation of 1923 was not the occasion of Weimars demise but it left a deep and lasting psychological scar, particularly amongst the middle classes, many could not forgive the weimar republic for a second failure in 1930s

Question 14

what were the problems of the coalition government?

Answer 14

• had too many parties,alongside using the pr system it was virtually impossible for one party to gain a majority of seats,coaltions were inevitable
• coalition likely to be unstable particularly with the challenges they faces (if the parties disagreed the coalition would fail resulting in many short lived coalition)
• forming a stable coalition government was increasingly difficult as more hostility to the weimar constitution and political extremism grew as more parties refused to take part in a coalition government

Question 15

jan 1919 election?

Answer 15

• notable support for centre parties (KPD and NSDAP non-existence0
• led to 3 centrists coalition governments all led by SPD (largest party but still only got 38% of votes) all coalition had majority support

Question 16

June 1920 election?

Answer 16

• SPD still largest party (but votes reduced to 21.7%)
• all other centre parties (DDP,Z,BVP)see their share of vote decline
• parties on extreme left see rise in votes (KPD 0 to 2.1%/USPD 7.6% to 17.9%)
• parties on extremE right also gain share (DNVP TO 10.3% TO 15.1%)NSDAP not yet participating
• June 1920-May 1924 : 5 different coalition govt (all mix of centre parties)

Question 17

May 1924 election?

Answer 17

• decline in support for democratic parties
• nazis become noticeable (6.5%)
• extremists vote rises (KPD,DNVP,NSDAP) to over 40% of the votes

Question 18

what were the threats from the left?

Answer 18

• Jan 1919 the spartacists (led by Liebknecht and Luxemburg) attempted a revolt in Berlin,the SPD govt were frightened by the threat of communism and moved quickly to crush the threat using the army and the freikorps
• Liebknecht and Luxemburg were killed
• left wing uprisings were crushed by the army in Berlin and Munich in spring 1919
• more serious challenge came when a soviet republic was established in Bavaria in April 1910,again Ebert used the army and freikorps to reduce the threat

Question 19

left wife parties from most extreme to most centre?

Answer 19

• KPD (anti-democratic, wanted a communist revolution)
• USPD (wanted a more socialist society but within a democratic framework)
• SPD (committed to democracy)

Question 20

how serious was this threat from the left

Answer 20

• it created a revolutionary style threat in the aftermath of the war
  -soviet style republic declared in Bavaria and the uprising in the Ruhr in 1923 were evidence of the danger of the ‘red threat’
  BUT
• only 10-15 % of the electorate supported such extreme left-wing views
• the KPD had neither strong leadership or clear strategy so level of electorate support was low (2% before 1924)
• the threat was exaggerated by right-wing propaganda
• the left was ideologically and tactically divided
• the ables leaders were killed
• by summer 1919 the threat of establishing communism was fully dissolved, never seriously challenging govt control

Question 21

most significant aspect of the more extreme left wing?

Answer 21

it took 1/3 of working class support for the Weimar government which may have been enough to get an actual majority in government
- Ebert use of the freikorps also resulted in some left-wing germans never forgiving Ebert for his overestimating of threat and underestimating of the rights

Question 22

what was the Kapp Putsch 1920?

Answer 22

• Match 1920 Luttwitz called on Ebert to resign,when he refused Freikrop marched into Berlin and proclaimed Kapp chancellor
• some army general refused to crush the revolt and so the govt fled to Stuttgart
• the uprising was defeated when trade unions retaliated with a general strike

Question 23

results of Kapp Putsch ?

Answer 23

• Eberts need for the army was highlighted as only 48 of the 775 army officers involved were arrested (the weimar was weak without army support)(govt dealt with left threats more harshly than right)
• but also showed the power of the workers and support for Ebert

Question 24

right-wing parties listed from most extreme to most centre?

Answer 24

• NSDAP (nazis,anti-democratic preferring authoritarian regimes of the past)
• DNVP (the main conservative party, initially monarchists hostile to democracy supported after 1925)
• DVP (moderate conservative led by Stressemann, committed to democracy)

Question 25

what did the extreme right represent?

Answer 25

• the destruction of the democratic constitution and the return of authoritarian rule
• belief of the stab in the back myth
• that the new weimar government were the November criminals who had overthrown the monarchy, signed the armistice and accepted the shameful T of V
• they absolved the kaiser of all blame and responsibility of Germanys problems

Question 26

what were the significant right-wing constitutions?

Answer 26

• juges and judiciary,with left-wing being punished much more harshly than the right (leniency for hitler)
• civil service (delay legislation)
• the army who were humiliated so disliked democracy and wanted authoritarian (willing to crush left-wing revolts but not right)

Question 27

what was the significance of these right-wing constitutions?

Answer 27

together they represented a powerful conservative and reactionary forceable to exert a powerful influence on the workings of the Weimar Republic, although the spirit of the constitution was democratic and progressive the institutions that were to administer it remained wedded to the values of a previous era

Question 28

political violence between 1918-1922?

Answer 28

• 376 politically motivated murders,mostly carried out by right-wing
• most notably the assassinations of Matthias Erzberger (leader of catholic centre party, one of signatures of the treaty) and Walter Rathenau (foreign minister for the central DDP,had signed the armistice and had negotiated with allies to improve the T of V )
• many communist leaders were also killed
• there were strong reactions against the murders but they also fostered disillusionment with the new regime (new govt could not bring law and order)

Question 29

what was the background of the Munich Putsch?

Answer 29

since the Kapp Putsch,Bavaria had been ruled by a right-wing regime and the Nazi party emerged in the traditional and national fervour of Bavaria in the early 1920s

Question 30

what was the Munich Putsch?

Answer 30

• sept 1923 the Nazis joined an association of right wing groups who were planing a putsch in munich in order to establish a dictatorship in Berlin
• the nazis took the chance to launch a coup as the backdrop of hyperinflation caused chaos in Germany
• hitler was able to gain the support of the Kahr (Bavarian state commissioner) when support seemed to waver
• Kahr reneged on his pledge to support and ordered the police to break up a march,16 nazis and 3 policemen were killed
• Hitler was arrested and in feb 1924 sentenced to 4 years imprisonement, this gave him publicity and he only served 9 months of his sentence

Question 31

how was the Putsch not a complete failure?

Answer 31

• propaganda victory
• forced nazis to change the policy and pursue legal victory via elections
• nazis joined 6.5% in general election in May 1924

Question 32

how serious was the threat from the right?

Answer 32

• Ebert underestimated the threat as he allowed the reactionary elite to remain in power and so cooled forces hostile to democracy in key positions
• lenient punishment for the right increased resentment towards them
• rw propoganda succesfully over exaggerated the threat of lw
• growing support for the right (grew by 28% from June 1919 to June 1920,more than for the left)
  BUT
• the defeat of both Putchs show that there was resistance and strength in the democratic forces
• political assignation were met with widespread revulsion
• before 1924 no rw parties placed any part in a coalition govt

Question 33

why did the Weimar govt survive the multiple crisis of 1919-1923?

Answer 33

• the extreme forces on both sides were disorganised and dived, neither having enough support
• army and political elite were not yet prepared to overthrow it
• Ebert used article 48 ad there strength of the army to take strong actions against threats
• stresseman tackled hyperinflation quickly and with some success before the end of 1923
• there continued to be support for the new republic

Question 34

to what extent where economic problems of 1919-1923 solved by 1928? (new currency)

Answer 34

very successful due to
- a new govt led by Gustavo Stressemann
- passive resistance in the Ruhr was called off (unpopular and led to serious unrest)but was essential first step to replace the old and worthless reichmaek
- the new currency was exchanged for the old one on the basis of one rentemark for 1 trillion marks (supported by a mortgage on all industrial and agricultural land)
- once the new currency was successfully launched the govt kept tight control over the amount of money in circulation
- overall success as by 1924 the rentemark fully replaced the mark (backed by gold) and inflation ceased to be a problem as the value of the new currency was established globally

Question 35

to what extent where economic problems of 1919-1923 solved by 1928? (balancing the budget)

Answer 35

• stressemans govt cut expenditure and raised taxes, salaries of govt employers were cut,300,000 civil servants lost jobs and taxes were both raised for individuals and companies
• as govt spending/debt began to fall confidence was restored
• these changed made a considerable difference to the way the German economy operated
  BUT
• number of bankrupt companies in Germany rose from 233 in 1923 to over 6000 in 1924 and those who had lost savings in the collapse of the old currency did not gain anything
• compensated those who had lost investments in war bonds at only 12.5% of og value which caused resentment especially from the middle class who had originally put money into war bonds
  Overall, streseman knew he had to change the way the govt ran in order to save the economy, even if this meant upsetting/angering certain people in Germany - instead looking at the bigger picture and long term effect these changes would be able to have.It was absolutely necessary to stabilise Germany regardless of the temporary issues it created as these were not as significant as those it solved

Question 36

to what extent where the economic problems of 1919-23 solved by 1928? (sorting the reparations problem)

Answer 36

• Dawes plan, first time that allies budged, making the reparations much more manageable by cutting the repayments
• Young plan (1929) - total amount owed reduced by 2/3 - great victory - amount payed each year reduced till 1929 - Germany should start repaying with 1000mil marks (fraction of what was previously expected) - Germany should receive large loan of 8000 mil marks from USA to help start plan and allow for heavy investment in German industry
• nov 1923, Streseman asked allies reparation committee to set up a committee of financial experts - address germanys repayment concerns
  Overall the change to reparations was a major factor in stabilising the German economy however looking back Germany were never actually not able to make reparations payments and instead it was more fulled by propaganda that allowed them to get these offers.However this doesn’t take away from the change in perspective from the allies who accepted Germanys economical problems and the loans granted were vital for Germanys economy to be able to thrive

Question 37

which out of political, economical or diplomatic changes were the most significant?

Answer 37

due to the significant challenges faced economically by Germany the fact Streseman was able to make such drastic improvements shows that this is what had the most significant change ultimately leading to a better society political both domestically and in foreign term (foreign policy helped to achieve this economical stability in multiple cases)
ev - Ruhr crisi solved and currency stablised
- new currency supply was strictly limited
- younges plan reduced by reparations by 2/3rds and helped spread payments out
BUT
- Germany was reliant of foreign loans (Dawes plan)
- resentment from those who lost savings ( unemployment insurance 1927,felt they were being cheated whilst others helped)
- unemployed civil servants and 6000 bankrupt companies

Question 38

how successful was Stresemans foreign policy?

Answer 38

overall had positive (somewhat) long lasting effect on Germany due to its ability to create a new perspective of Germany within (helping to re-establish them as another powerhouse) which ultimately helped Germany to stabilise its economy leading to improvements socially
- the Locarno pact,agreement on western borders,france leave the Ruhr and Germany become part of League of Nations borders,germany agrees to keep troops out of the Rhineland - improved relation with European countries and showed germanys willingness to cooperate
- Dawes plan, made the reparation payments easier to pay (more spread out and given help from foreign loans)
- young plane leads to allies withdrawing from zone 2 in 1929 and zone 3 in 1930(5 years ahead of schedule), reduced reparations bill from £6.6B to £1.8B and France and Britain promised to withdraw troops from the Rhineland by 1930
- treaty of Berlin,germany agreed to be neutral regarding war with Russia which successfully put pressure onto allies whilst also strengthening relations with Russia
BUT often Stresemans fp created turmoil within Germany,especially from the right who perceived it as ‘politics of abdication’
- was unable to fully revise the treaty
- policy of fulfilment viewed as taking war blame
- Germany too reliant on loans from other countries

Question 39

did Stresemans foreign policy strength the Weimar Republic internationally and domestically?

Answer 39

Overall due to Stresemans focus on improving the treaty of Versailles through creating positive dynastic relations he was only able to strengthen the republic internationally ,having little to no effect domestically.He achieved great success at creating international allies from the west through cleverly choosing to strengthen relations with Russia,this put fear on the west of what Russia were capable of with Germanys support.Another significant way Streseman improved relations was by becoming a part of the league of nations as this helped to establish the WR after the great hit its perception had took due to the war.However many of things did not have great effects on those actually living in Germany as it focused more heavily on political aspects of Germany over the social aspect that would have had a greater affect domestically

Question 40

to what extent was the treaty of versailles changed by 1929?

Answer 40

• Locarno pact eg western borders,withdrawl of troops from the Rhineland and entry to league of nations
  -treaty of Berlin eg germany agrees to be neutral in war involving Russia
  -younge plan eg reparations reduced massively
  BUT
• the treaty still existed and germany was still unable to have an army which shows they were still not fully trusted (fairly) and the policy of fulfilment showed Germany as beign responsible for the start of the war (upset many right wing)
  Conclusion - Streseman couldn’t have been able to make any further of more significant changes to the treaty and the fact he was able to make any should be acknowledged.If he hadn’t taken the approach the right wanted Germany would have been left stranded in Europe with no allies which would only worsen the social and economic situation of the country,by instead secretly rearming Streseman was able to create a positive perception from Europe whilst also ensuring germanys safety

Question 41

what was the political impact of the changes to the treaty of Versailles?

Answer 41

• all govt from 1923-28 were coalition governments (short lived and unstable)
• SPD refused to take part in 516 governments
• DNVP participation in democracy damaged their support
• division of left wing (SPD vs KPD)
• Streseman wasn’t seen as helping Germany in some instances as the situation at home was still affected by the depression etc whilst he was making fp changes that had long term effects but not short term effects
• fuelled right wing hate - including the rise of facism and the nazis
• extremist political parties attracted less support,increasing democratic support = less violence
• no uprisings/revolutionary events
• continued high participation in elections

Question 42

what happened to Germanys international position due to the changes made to the Treaty of Versailles?

Answer 42

• improved relations with US as they relied on them for loans (Young Plan)
• first time they saw any negotiation (Locarno Pact) which was positive sign as allies no wanted to offer aid
• created Allie of Russia which would help stabilise Germany
• joining league of nations was a big step in stabilisation and no longer being an outcast
• extremist political parties attracted less support
  BUT
• minor changes to the treaty
• no border changes
• no change to military situation
• still guilty and paying reparations
• resentment from the right wing at home
  — overall it did improve germanys international position mainly due to creating a new perception of what germany was (which would have had a significant effect) although it did not make massive changes to the actual treaty

Question 43

what was the economical impact due to the changes in the Treaty of Versailles?

Answer 43

• reparations reduced by 2/3rds due to Younges Plan (from £6.6B to £1.8B)
• hyperinflation ended and investments from foreign inverstemtns increase
• were able to create house building schemes, people were spending money (roaring twenties)
• less hunger and depression
  BUT
• germany in a lot of debt due to high govt spending (reliant on foreign loans)
• disillusionment, house building and unemployment insurance act 1927 (those still owed money from war bonds felt cheated)
• overall the most successful economic achievement had already been achieved before the majority of changes had been made, but being able to continue the stability after is an achievement of Stresemans (not all down to changes though)