Post-WW1 Germany’s decent into chaos

The Weimar Republic was the name given to Germany’s government from 1919 to 1933. It was named after the town of Weimar where a national assembly formed Germany’s new government after Kaiser Wilhelm II abdicated. From its uncertain beginnings to a brief season of success and then a devastating depression, the Weimar Republic experienced enough chaos to position Germany for the rise of Adolf Hitler and his Nazi Party.

In the four years following the end of the First World War, the situation for German civilians remained dire. The severe food shortages improved little as a result of the peace treaty. Many German civilians expected life to return to prewar normalcy following the removal of the allied naval blockade that had been imposed at the start of the war. Instead, the daily struggles of life induced by the war persisted for the decade following. Meat consumption in the country was still half of that before the onset of the war, as a result, after four years of war and famine, many German workers were exhausted, physically impaired and discouraged. Millions were disenchanted with capitalism and hoping for a new era.

In 1922, three years after the German signing of the Treaty of Versailles, Germany was on the verge of collapse. The growing post-war economic crisis was a result of loss of pre-war industrial exports, the loss of supplies in raw materials and foodstuffs, the loss of the colonies, and worsening debt balances exacerbated by the German government’s issuing of promissory notes to raise money for the indemnity pays placed on Germany by the Allies to pay for the war – which brought about hyper-inflation.

The German’s spiral into chaos began in 1920, where under French pressure, the Saar, Germany’s principle source of coal, was separated from the Rhine Province and administered by the League of Nations. At the same time, in 1920, the key German industrial districts of Eupen and Malmedy were transferred to Belgium. Shortly after, France completely occupied the Rhineland, the heartland of Germany industry.

The ceasing of its industries and resources by the victorious Allies, along with the loss of its colonies, made it next to impossible for Germany to pay the reparations it was obliged to pay for starting the war. Germany’s decent into chaos eventually led to the collapse of the German Republic and the rise of Nazi Germany.

Loss of Colonies

The German colonial empire got its start around 1884, and in the following few years Germany acquired several territories: German East Africa, German South-West Africa, Cameroon, and Togo in Africa. Germany was also active in the Pacific annexing a series of islands that would be called German New Guinea, which included the Northern Solomon Islands.

Germany lost control of its colonial empire and many of its colonies were seized by the Allies during the first weeks of the war. However, some colonial military units held out for a while longer: German South West Africa surrendered in 1915, Kamerun in 1916 and German East Africa in 1918. In the case of German East Africa, the defenders engaged a guerrilla war against British colonial and Portuguese forces and did not surrender until after the end of the war.

Unlike France and England who saw colonies as a source of economic power, Germany saw its colonies as a means to support their aspirations to become a great naval power – using its colonies as bases to refuel warships and communications stations.

Germany's colonial empire was officially confiscated with the Treaty of Versailles after Germany's defeat in the war and each colony became a League of Nations mandate under the supervision of one of the victorious powers.

In Africa, England and France divided German Kamerun (Cameroons) and Togoland. Belgium gained Ruanda-Urundi in northwestern German East Africa, England obtained by far the greater land mass of this colony, thus gaining the "missing link" in the chain of British possessions stretching from South Africa to Egypt (Cape to Cairo), and Portugal received the Kionga Triangle, a sliver of German East Africa. German South-West Africa was taken under mandate by the Union of South Africa.

In the Pacific, Japan gained Germany's islands north of the equator (the Marshall Islands, the Carolines, the Marianas, the Palau Islands) and Kiautschou in China. German Samoa was assigned to New Zealand; German New Guinea, the Bismarck Archipelago and Nauru went to Australia.

Germany had not as much vested interest in their colonies as France and England did theirs, their loss nevertheless significantly impacted the ability of Germany’s industries to recover following the war – both in the removing of sources of cheap raw materials and the loss of captive buyers for finished products.

Post-War Economic Challenges

At first Germany tried to recover from the war by way of social spending. Germany began creating transportation projects, modernization of power plants and gas works. These were all used to battle the increasing unemployment rate. Social spending rose at an unbelievable rate. In 1913 the government was spending approximately 20.5 marks per resident; by 1925 it had risen to almost 65 marks per resident and finally in 1929 it reached over one hundred marks per resident. The elevating amounts of money, which were used for social spending, combined with plummeting revenues, caused continuing deficits.

Even with all of Germany's economic shortcomings, it could have still been possible to make reparation payments if foreign countries had not placed protective tariffs on Germany's goods. With the income Germany could have gained by selling goods in foreign countries, for relatively low prices, reparation payments could have become feasible. The protective tariffs made this idea impossible and further depressed the German economy.

The Weimar Republic faced one of Germany’s greatest economic challenges - hyperinflation. Thanks to the Treaty of Versailles, Germany’s ability to produce revenue-generating coal and iron ore exports decreased. As war debts and reparations drained its coffers, the German government was unable to pay its debts.

In response, the Weimar government simply printed more money. The effort backfired and further devalued the German Mark—and inflation increased at an astounding level. The cost of living rose rapidly and many people lost all they had.

In the early post-war years, inflation was growing at an alarming rate, but the government simply printed more currency to pay debts. By 1923, the Republic claimed it could no longer afford the reparations payments required by the Versailles Treaty, and the government defaulted its payments.

Some of the former World War I Allies didn’t buy Germany’s claim that it couldn’t afford to pay. In a blatant League of Nations breach, French and Belgian troops occupied Germany’s main industrial area, the Ruhr, determined to get their reparation payments. The Weimar government ordered German workers to passively resist the occupation and go on strike, shutting down the coalmines and iron factories. As a result, Germany’s economy quickly deteriorated.

In 1919, one loaf of bread cost one mark; by 1923, the same loaf of bread cost 100 billion marks. Circulation of money rocketed, and soon banknotes were being overprinted to a thousand times their nominal value and every town produced its own promissory notes; many banks and industrial firms did the same.

By 1923 the value of the mark had declined from 4.2 marks per U.S. dollar in 1914 to one million marks per dollar. In 1923, a new currency, the Rentenmark, was introduced at the rate of one trillion marks for one Rentenmark, an action known as redenomination. At that time, one U.S. dollar was equal to 4.2 Rentenmark. Reparation payments were resumed, and the Ruhr was returned to Germany.

Political Turmoil

It did not take long after the signing of the peace treaty before the Weimer Republic was under attack from both left- and right-wing sources. The radical left accused the ruling Social Democrats of having betrayed the ideals of the workers' movement by preventing a communist revolution and sought to overthrow the Republic.

Various right-wing groups opposed any democratic system, preferring an authoritarian, autocratic state like the 1871 Empire. To further undermine the Republic's credibility, some right-wingers also blamed an alleged conspiracy of Socialists and Jews for Germany's defeat in World War I.

For the first five years, the Weimer government dealt severely with the occasional outbreaks of violence in Germany's large cities. The first challenge to the Weimar Republic came when a group of communists and anarchists took over the Bavarian government in Munich and declared the creation of the Bavarian Soviet Republic. The uprising was brutally put down by government-supported militia made up mainly of ex-soldiers dismissed from the army and who were well paid to put down forces of the far left.

Inspired by the general strikes, a workers' uprising began in the Ruhr region when 50,000 people formed a "Red Army" and took control of the province. The rebels were campaigning for an extension of the plans to nationalize major industries, and while they supported the national government, the government did not want to lend support to the uprising fearing their own overthrow by the establishment of a socialist regime. The repression of the uprising by the army quickly became a major source of conflict within the socialist movement and contributed to the weakening of the only group that could have withstood the National Socialist movement.

Further pressure on the central government came from the political right in 1923 with the "Beer Hall Putsch" staged by the Nazi Party under Adolf Hitler in Munich. In 1920, the German Workers' Party had become the National Socialist German Workers' Party (NSDAP), or Nazi party. It soon became a driving force in the collapse of the Weimar Republic. Hitler named himself as chairman of the party in July 1921.

In November 1923, Hitler took over a meeting by Bavarian prime minister at a beer hall in Munich. In the meeting Hitler declared that the Weimar government was deposed and that they were planning to take control of Munich the following day. When his followers were thwarted by the Bavarian authorities, Hitler was arrested and sentenced to five years in prison for high treason. While in jail, Hitler dictated Mein Kampf, which laid out his ideas and future policies.

America Comes to the Rescue

With the political situation in Germany quickly spinning out of control, in late 1923 the League of Nations asked U.S. banker and Director of the Budget, Charles Dawes, to help tackle Germany’s reparations and hyperinflation issues. He submitted the "Dawes Plan" which outlined a plan for Germany to pay more reasonable reparations on a sliding scale.

The "Dawes Plan" helped stabilize the Weimar Republic and re-energize its economy. Once civil stability had been restored, the Central government began stabilizing the German currency, which further promoted confidence in the German economy and helped the recovery that was so ardently needed for the German nation to keep up with their reparation repayments, while at the same time feeding and supplying the nation. As a result, the daily life of everyday Germans improved.

To help Germany meet reparation obligations, an agreement was reached between American banks and the German government in which the American banks lent money to German banks with German assets as collateral to help it pay reparations. The German railways, the National Bank, and many industries were therefore mortgaged as securities for the stable currency and the loans.

In October 1925 the Treaty of Locarno was signed by Germany, France, Belgium, Britain and Italy. It recognized Germany's borders with France and Belgium. Moreover, Britain, Italy and Belgium undertook an agreement to come to France’s aid in the case that German troops marched into the demilitarized Rhineland.

The Locarno Treaty paved the way for Germany's admission to the League of Nations in 1926. Germany signed arbitration conventions with France and Belgium and arbitration treaties with Poland and Czechoslovakia, agreeing to refer any future disputes to an arbitration tribunal or to the Permanent Court of International Justice.

As Germany settled its long simmering differences with its neighbors, overall trade increased and unemployment fell. While reforms did not relieve the underlying weaknesses of the Weimar government, they did give the appearance of a stable democracy. The major weakness in constitutional terms was the inherent instability of the coalitions, which formed the central government, which often fell apart prior to elections. The growing dependence on American finance was to prove fleeting, and Germany was one of the worst hit nations in the Great Depression.

The Great Depression

Much of the Weimar Republic’s recovery was due to a steady flow of American dollars into its economy. But unbeknownst to Germany, America had positioned itself for an economic disaster of its own as it struggled with increased unemployment, low wages, declining stock values and massive, un-liquidated bank loans.

On October 29, 1929, the U.S. stock market crashed, sending America into a devastating economic meltdown and ushering in the Great Depression. The stock market crash had a global ripple effect. It was especially devastating for the newly recovered Weimar Republic. As the flow of American money dried up, Germany could no longer meet its financial responsibilities. Businesses failed, unemployment rose again, and Germany faced another devastating economic crisis.

In September 1930 a political earthquake shook the German republic to its foundations when the Nazi Party entered the Reichstag with 19% of the popular vote and made the fragile coalition system by which every Chancellor had governed unworkable.

During the hyperinflation period of the early 1920s, the German middle class bore the brunt of the economic chaos. When the financial crisis following the stock market crash hit, they grew weary and distrustful of government leaders. Searching for new leadership and fearing a Communist takeover, many people turned to extremist parties such as the Nazi Party led by Adolf Hitler, despite his unpopular and failed attempt to start a national revolution in 1923. The immediate question was what part the now large Nazi Party would play in the Government of the country.

The millions of adherents to the Nazi party wanted a renewed Germany and a new organization of German society. But Hitler’s demand for leadership of the German government was rejected by Hindenburg, who served as the German President. As there still was no majority in the Reichstag for any government, the Reichstag was dissolved and new elections took place in the hope that a stable majority would result.

The subsequent elections of July 1932 yielded major gains for the Communists, and for the Nazis, who won 37.3% of the vote – their high-water mark in a free election. The Nazi party supplanted the Social Democrats as the largest party in the Reichstag, although it did not gain a majority. As a result of the election, in 1932, the Nazi Party became the largest political party in Parliament and Hitler was named Chancellor and sworn in January 1933.

By early February, Hitler had begun to clamp down on the opposition. Meetings of left-wing parties were banned and even some of the moderate parties found their members threatened and assaulted. A fire in the Reichstag was blamed by Hitler on the Communists, and Hitler used it to declare a state of emergency to obtain the presidential assent of Hindenburg to indefinitely suspend a number of constitutional protections of civil liberties, allowing the Nazi government to take swift action against political meetings, arresting and killing Communists.

In March 1933, Hitler introduced the Enabling Act to allow him to pass laws without the approval of Germany’s parliament. Once it became law, Hitler was free to legislate as he saw fit and establish his dictatorship without any checks and balances.

The passage of the Enabling Act is widely considered to mark the end of the Weimar Republic and the beginning of the Nazi era. It empowered Hitler to legislate without the approval of the Reichstag or the President, and to enact laws that were contrary to the constitution.

As a result, Hitler now had the power to restrict the rights of habeas corpus; freedom of the press; freedom to organize and assemble; the privacy of postal, telegraphic and telephonic communications; and legalized search warrants and confiscation beyond legal limits otherwise prescribed. With these powers, Hitler was able to pre-empt opposition to his dictatorship, and within years, the world would yet again descend into a world war.

Reasons for failure of the German Republic

Many historians believe that like the Russian Republic, under Alexander Kerensky, the Weimar Republic was doomed from the beginning. Moderates disliked it and extremists on both the left and right loathed it.

Like Russia, Germany had limited democratic traditions, and the Weimar Republic was widely seen as chaotic. Many Germans believed that Germany's surrender in World War I had been the act of traitors, who formed the leadership of the Weimar Republic; as such the legitimacy of the government was on shaky ground. As normal parliamentary lawmaking broke down and was replaced by a series of emergency decrees, the decreasing popular legitimacy of the government further drove voters to extremist parties.

No single reason can explain the failure of the Weimar Republic. The most commonly asserted causes can be grouped into four categories: economic problems, institutional problems, the failure of the League of Nations to fulfill its mandate, and the roles of specific individuals, most prominent of which was a former Army Private and failed artist named Adolph Hitler.

Under Hitler’s leadership, the total destruction of Germany, which the leaders of the Weimar Republic had avoided by accepting the harsh peace terms imposed upon them as a condition to end World War I, were brought to fruition.

Twenty years after the signing of the 1919 peace treaty to end the "war to end wars", the world was again at war. Thirteen years after Germany threw off the yoke of the peace treaty, Germany and the rest of Europe lay in ruins and forty million people were dead.

Following the Second World War, the victorious Allies revisited the original goals of Woodrow Wilson’ League of Nations, and formed the United Nations, which with all its flaws, has achieved the one goal its predecessor had failed to achieve – preventing another world war.