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WEIMAR WOES: “T-R-O-U-B-L-E” WEIMAR REPUBLIC = GERMANY AFTER WORLD WAR I WOES = PROBLEMS OR DIFFICULTIES OBJECTIVE OF THIS LECTURE & THESE DISCUSSIONS: Identify Major Problems Germany Faced in the 1920s. MAJOR PROBLEMS FOR GERMANY IN THE 1920s These spell: T reaty of Versailles R eparations payments O ccupation of the Ruhr region U seless money (Hyperinflation) B ig loans from USA (Dawes Plan) L oss of jobs (The Great Depression) E xtremists battle for power (Nazis and Communists) WHY THIS BACKGROUND INFORMATION IS IMPORTANT: Adolf Hitler (leader of the Nazi Party) could not have gained power if Germany’s economy had been strong and if its government had been popular. But events after World War I left Germany’s economy poor and its democratic government feeling the blame. T Treaty of Versailles 1. Treaty written by the Allied Powers (Britain, France, USA, Italy) that Germany was forced to sign in June 1919 (after World War I). 2. Germans considered it a harsh “dictated peace” (they were not allowed to attend the negotiations), especially since many did not believe Germany lost World War I. 3. Germany lost territory: all of its colonies, Alsace-Lorraine (given to France) & the Polish Corridor (which cut Germany into 2 pieces). 4. There were major limits placed on the size and ability of Germany’s army and navy (100,000 man volunteer army; no tanks, planes or submarines). 5. Germany had to accept blame for causing WWI and was not allowed to join the League of Nations. Vocabulary: TREATY A formal agreement signed by two (or more) countries. AN UNPOPULAR TREATY The new Weimar Republic’s popularity was hurt by signing the Treaty of Versailles. Weimar leaders tried to defy it (they would break rules or refuse to pay), but this led to more t-r-o-u-b-l-e. The first Weimar Republic Chancellor, Philip Scheidemann, actually resigned from government in March 1919 because he didn’t want to sign the treaty (even though it wasn’t finished yet). Vocabulary: CHANCELLOR The highest-ranking policy making leader of the government in Germany (it is a job similar to a Prime Minister in other European countries). EXTRA INFORMATION THAT YOU DO NOT NEED TO WRITE: PICTURED ABOVE: A massive protest against the Treaty of Versailles was held outside the Reichstag building in Berlin, Germany, in June 1919. President Friedrich Ebert asked General Paul von Hindenburg if there was even a slight chance the military could hold out against a threatened Allied Powers invasion. Being told the answer was no, President Ebert agreed to sign the treaty when it was approved in the Reichstag. He had no choice. R Reparations Payments Vocabulary: REPARATIONS Paying money to a victim to “right a wrong” (to try to make amends or repairs). Did you know? Germany made its final reparations payment for World War I just last year: October 3, 2010! http://www.bing.com/images/search?q=images%2c +reparations%2c +Germany&view=detail&id=FE3E1FB5C0B1CABEE 59106B6D63E471B1C0A0B16&first=0&qpvt=image s%2c+reparations%2c+Germany&FORM=IDFRIR 1. The Treaty of Versailles (1919) said Germany would have to pay “reparations.” It did not say how much. 2. In 1921, the Allied Powers announced Germany would have to give lumber and coal to the Allied Powers (mainly France and Belgium) every month for many years. 3. In 1916-17, when Germany built the ‘Hindenburg Line,’ it had destroyed a large area of France (poisoning its wells, burning its forests, leveling its buildings), so this “repair” money. 4. It was also publicly stated that Germany would have to make payments equaling what would today be about $387 billion in US currency. But, in private, the Allies told Germany it would only have to pay about 40% of that amount. (Basically, the Allied leaders wanted to look like they were being tough on Germany). Many economists in other countries thought Germany was being asked to PAY TOO MUCH (more than it could afford with the bad economy after World War I) and public sympathy (feelings of pity and sorrow for someone else’s suffering) in Britain and the USA started to turn toward Germany (and away from France). O Occupation of the Ruhr 1. The Treaty of Versailles gave France and Belgium the right to occupy a coal-producing part of the Rhineland called the Ruhr while Germany made coal shipments as part of its reparations. 2. After Germany made its first coal shipment, France and Belgium removed their soldiers from the Ruhr region. 3. Big mistake: Germany missed 34 of its first 36 coal shipments! France and Belgium re-occupied the Ruhr to enforce the treaty and get the coal directly from the German coal miners. Vocabulary: OCCUPATION The act of entering and taking control of a country (or part of it). 4. Proud German coal miners and railway workers refused to mine and deliver coal for France and Belgium. This was very popular in Germany. Even Britain criticized France for “invading” Germany. 5. The German government printed more money to pay miners to NOT work. This led to disaster. PICTURED ABOVE: FRANCE and BELGIUM reoccupied the Ruhr region (in red, above) of Germany in January 1923 in order to enforce payment of coal. Britain and other nations condemned France for enforcing the Versailles treaty, and Germany’s government printed extra money to pay for the defiance of German coal workers & railway workers. U Useless Money (due to hyperinflation) 1. Hyperinflation is caused by circulation (the public availability of something) of too much money. OKAY, maybe not entirely useless: A man uses it for wallpaper, a woman burns it for heat and German children use stacks of it as building blocks in 1923. Vocabulary: INFLATION A rise in prices for products (things you buy) and a drop in the purchasing power of money. Vocabulary: HYPERINFLATION An insane, out-of-control rise in prices so that money loses its value. 2. Some Weimar leaders thought inflation would be a good way to pay back reparations more quickly and defy the Allied Powers by paying them in less valuable Marks (name for German money). 3. Because of this, they circulated more money and inflation grew from 1919 through 1922. 4. In 1923, the government printed a lot more money to pay the salaries of striking miners who were heroes to the German people for defying the occupation of the Ruhr. This led to hyperinflation, which wiped out many people’s life savings and became a major crisis (time of intense danger). AT THE HEIGHT of the hyperinflation crisis in Germany (October 1923) prices doubled every 3.7 days and the daily inflation rate reached 20.9% (that would be considered high inflation if it were a yearly rate!) Money became virtually useless. B Big loans from the USA 1. The USA (which had embraced isolationism - a policy of remaining apart from the political problems of other nations) now stepped in to help propose a solution to both the occupation of the Ruhr and hyperinflation called the Dawes Plan. 2. Details from the Dawes Plan: Amount of reparations cut by more than half; no German payments for 2 years & reduced payments afterward; new German currency to replace the old; French & Belgian soldiers to leave the Ruhr; AND the USA would give Germany large loans to pump up its economy. In return, a USA (not German) official would transfer all of Germany’s payments, in gold. 3. As a result, Germany’s economy improved; votes for extremist parties like the Communists and Nazis dropped. THE RENTENMARK: The new German currency issued in 1924. CHARLES DAWES: The American business man appointed to create a plan to rescue Germany’s economy and solve the Ruhr Crisis (no pressure, eh?) Vocabulary: LOAN Money that is borrowed and to be paid back with interest. POLITICAL SPECTRUM IN GERMANY EXTREME RIGHT E AV “H VIOLENT DISLIKE S” “H NO AV TS E” EXTREME LEFT German Communist Party (KPD) Nazi Party (NSDAP) Goal: a classless society Want a planned economy based on needs Needs of society greater than those of the individual Main support: working class & underprivileged Vocabulary: SPECTRUM A point on a scale that runs between two extremes. Extremely nationalistic ideology Racist; support inequality & a class system Individuals serve the state (not other way around) Main support: middle and upper classes AS A MATTER OF FACT (Election results for Communists and Nazis during Dawes Plan period): May 1924 December 1924 May 1928 KPD (Communists) 12.6% 8.9% 10.6% NSDAP (Nazis) 6.5% 3.0% 2.6% L Loss of jobs (The Great Depression) THE GREAT DEPRESSION hit Germany harder than any other European nation. Above, unemployed workers receive food at a soup kitchen. 1. October 1929: USA suffered a serious stock market crash that only became worse. It was the beginning of the Great Depression. 2. Germany stopped receiving USA loans (Dawes Plan) and was asked to begin paying back its loans immediately. This is why Germany was the European nation hurt the most by the Great Depression. It was most dependent on the USA. 3. Unemployment rose quickly (reaching 30%) and became worse each year from 1930 to 1932. 4. The crisis led to bitter political arguments. The “Grand Coalition” of moderate, pro-democracy parties fell apart (1930), while votes for antidemocratic parties (Nazis, Communists) increased. President Hindenburg appointed Heinrich Brüning (Centre Party) Chancellor, without much popular support. Vocabulary: UNEMPLOYMENT The situation of wanting to have a job but being unable to find one. Vocabulary: COALITION A temporary alliance of political parties to form a government. 5. Brüning raised taxes & cut government spending, hurting the economy even more in the short term. These laws were forced through by decree. None of this was popular. Brüning Hindenburg MAKING MATTERS WORSE? The Great Depression in Germany BY THE NUMBERS Index of Goods Production Capital Registered Unemployment Rate (%) Consumer Overall Union Members 50 110 43.7 100 100 103 97 82.5 91 37.5 81 80 29.9 67 61 55 25 21.9 46 27.5 12.5 10 6.2 0 • • 1928 1929 1930 1931 1932 0 1926 1927 6.3 1928 13.1 14 8.5 1929 1930 1931 1932 Left: German production of capital goods (equipment that can be used to make many consumer goods) fell by more than half between 1929 and 1932, while consumer goods fell off more slowly. Even so, their production was slowed by a third within four years. The result, of course, was less need for employees, as shown in the next graph. Right: These are the official government numbers of those who registered for unemployment. The actual numbers are believed to be higher. As noted, union members faced a higher unemployment rate than non-union workers. Making matters worse, many of those who were employed, could only find part-time work (frequently for short periods of time). As a result, the world economic crisis deeply affected many more Germans than the 30% who were officially listed as out of work in 1932. E Extreme parties gain votes 1. The extreme parties on the left (Communists) and the right (Nazis) began to get many more votes from 1930-32. 2. The Communists went from 10.6% of the vote in May 1928 to 13.1% in 1930 and 14.6% in July 1932 before reaching a high of 16.9% in Nov. 1932. Meanwhile, the Nazis went from 2.6% in May 1928 to 18.3% in Sept. 1930 and 37.4% in July 1932, before dropping a bit to 33.1% in Nov. 1932. 3. President Hindenburg was running out of options: he refused to give any power to the Communists and wouldn’t allow Hitler (Nazis) to become Chancellor. Hitler refused to join a coalition unless he was the Chancellor. 4. So, Hindenburg appointed conservatives he trusted like Franz von Papen (July 1932) and Kurt von Schliecher (Nov. 1932) as Chancellor, but they had almost no popular support. Vocabulary: PROPORTIONAL REPRESENTATION An election system in which parties gain seats in proportion to the number of votes they receive. FRANZ VON PAPEN PRESIDENT PAUL VON HINDENBURG In Germany, the Chancellor and the cabinet of ministers were chosen by negotiation among parties making a coalition to rule. But the President had to approve of a coalition for it to take effect. NOVEMBER 1932 ELECTION RESULTS 1. NSDAP (Nazis) 33.1% (196 of 584 seats) 2. SPD (Social Democrats) 20.4% (121 of 584 seats) 3. KPD (Communists) 16.9% (100 of 584 seats) 4. Z (Centre Party) 11.9% (70 of 584 seats) 5. DNVP (Conservatives) 8.5% (52 of 584 seats) 6. BVP (Bavarian party) 3.1% (20 of 584 seats) Out of political desperation, President Hindenburg was convinced by former Chancellor Franz von Papen to appoint Adolf Hitler as Chancellor on Jan. 30,1933 in order to “use” Hitler’s popularity to support their traditional conservative policies. Papen became Vice Chancellor and the other government ministers were “responsible” traditional politicians who would help “control” Hitler (according to Papen’s plan). Therefore, Adolf Hitler was appointed as Chancellor of Germany on January 30, 1933. He was not directly elected by the people, but his party (NSDAP) had received the largest number of votes in the most recent national election. He was appointed by Pres. Hindenburg as part of a scheme by Franz von Papen.