Flashcards in Weimar Politics And Economic Problems 1924-9 Deck (25)
When did stresemanns government collapse and who was it replaced by?
Late November 1923 to be replaced by one led by Wilhelm Marx of the centre party.
Stresemann continued as foreign minister until 1929
The Republic was in a state of emergency that only lifted in...
Which parties made great gains of he elections of May 1924 and why?
Nationalist and communist, cause by the uncertainty created by the economic crisis
What did Stresemann believe was the best course of action in dealing with the allies?
I'm his view, Germany's greatest need was raw materials, new markets for its good and new sources of capital. Germany needed to be strengthened economically
Why was the Dawes plan called this?
Because it was put together by a committee of economists and experts chaired by the American banker Charles Dawes
What was the aim of the committee putting together the Dawes plan?
To find a solution to the reparations problem under the slogan 'business not politics'
When did the committee produce its report on the Dawes plan?
What were the points of the Dawes plan?(3)
French would leave the Ruhr and further sanctions be harder to apply
Reparations would be paid over a longer period and credit would be advanced to help rebuild the German economy. In the first four years, an international loan of 800 million marks would be granted to cover four fifths of the reparation payments
The reichsbank would be reorganised under allied supervision. Reparations were to be paid in such a way not to threaten the stability of the German economy
What were the difficulties in passing the Dawes plan?
Many parties disliked the plan, in particular the continuation of reparation payments
Key points of Stresemann?
The Stresemann years 1924-9 were named after Gustav Stresemann who was reich chancellor in 1923 and foreign minister 1924-9
It was only in diplomacy, in which Stresemann excelled, that the nations situation was improved
What were the problems caused by the SPD.
Between 1924 and 1928 the SPD resisted becoming involved in forming workable coalition governments despite its position as the largest party in the reichstag.
The main reason for this course of action was a belief that coalition with the 'bourgeois'parties would lead to a compromise of the party's ideals.
The consequence of such action was to reduce the influence of socialists in the reichstag. This weakened the whole process of democracy as it contradicted the concept of representation and accountability
The election of Hindenburg:
April 26 1925 elected president of the Weimar Republic.
As the victor of the battle of tannenburg in 1914 he was much respected
Made it clear that he would not accept SPD participation in coalition governments
Government instability January 1926- February 1928
Jan 1926 hans Luther formed a minority coalition involving the centre party, DVP and DNP.
this didn't last, foundering on the instructions it gave to the country's diplomatic corps to use the old imperial flag
What legislation was passed in 1927?
Election of May 1928 significance?
The left made important gains, the SPD and KPD.
the centre and the right saw votes drop
The election of hugenburg to the leadership of the DNVP in October 1928 clearly showed the anti democratic feelings of a majority of the DNVP membership.
The results of the election show a subtle but real shift away from the established parties to those of the fringes of political life
What is the German economist kurt borchardt's view on the economic problems of Germany?
He argued that 1924-9 were years of slow growth and 'relative stagnation' in the economy. He suggests the main reason for this was that trade union power kept wages high and therefore squeezed profits and middle class income
He believes the Weimar economy was structurally weak before 1929
Monetary stability: economic problems
Between 1924 and 1929 there was no monetary stability which was particularly important to those classes that had suffered because of the hyperinflation of 1923. This was due to the establishment of the rentenmark and effects of the Dawes plan.
As a result of the Dawes plan there was a significant influx of foreign capital, around 2.5 billion marks between 1924 and 30 . The majority of this came from the U.S. and enabled the reconstruction of German industry
Delay of reparation payments:
The growth in available capital in Germany was also due to the delaying of reparations, as suggested by the Dawes plan, allowing investment in the German economy.
The Dawes plan allowed the Germans to pay at the rate of only 1 million marks a year until 1929, where the rate would be increased to 2.5 mil
As a result, national income was 12% higher in 1928 than in 1913
There is little evidence in the voting figures of a return of confidence in the mainstream parties of the Republic
Unemployment figures support the view that many of the economic problems may have had their roots in the supposed years of stability
E.g. In late 1928 unemployment stood at 3 million or 14.5% of the workforce
The collapse in food prices from 1922 led to widespread rural poverty
Mid 1920s saw increasing organised attack by employers on the rights of labour
In1923, the 1918 legislation that enforced an 8 hour day was altered to 10 in some circumstances.
Employees resisted union demand for higher wages in this period to the extent that between 1924 and1932 around 76,000 cases were brought to arbitration
Mullers grand coalition 1928-30
A ministry dominated by socialists was formed led by Hermann muller of the SPD.
New coalition was broad enough to include members of the SPD, DDP, DVP, BVP and centre.
Main task of the coalition was to steer the young plan through the reichstag in 1929
Emerged because Germany was to start paying the higher rate of reparations
For the first time, timescale for reparation repayment was set (2,000 mil marks a year for the next 59 years)
Responsibility for paying reparation was to be given to Germany. Transfer of payments from German marks into foreign currency was to be handled by a new institution, the bank for international settlements, Switzerland
Payments were to increase gradually and from 1929-32 Germany was to pay 1,700 mill RM less than it would've payed under Dawes
If Germany agreed to the plan, the French promised to evacuate the Rhineland by June 1930
Opposition to the young plan?
Opponents of the Republic were not impressed by the young plan and aimed to use the fact Germany still had to pay reparations
Under article 73 a referendum could be petitioned for. Hugenburg formed the reich committee for a referendum to oppose the plan. Raised 4 mil signatures
Campaign was important because it included, on the invitation of hugenburg, Adolf hitler.
Reich committee based their campaign on the 'freedom law'
Young plan legislation passed March 1930
By following June, French evacuated the Rhineland