Make Germany Pay part 2 - the Ruhr, hyperinflation and recovery

Summary

The transcript discusses the aftermath of World War I and the economic and political crises Germany faced in the early 1920s. After falling behind on reparations, French and Belgian troops occupied the Ruhr in 1923, leading to German passive resistance and strikes. This deepened the country's economic struggles, including hyperinflation. Gustav Stresemann became Chancellor, calling off resistance and resuming reparations. Despite nationalist backlash, inflation was controlled, and the Dawes Plan helped stabilize the economy. France withdrew from the Ruhr, and Germany reintegrated into international diplomacy through the Locarno Pact and League of Nations.

Takeaways

• 🇫🇷 France and Belgium invaded the Ruhr in January 1923 to force Germany to pay reparations.
• 🇩🇪 German workers in the Ruhr refused to cooperate with the French occupation, leading to passive resistance.
• 📉 The German government's support of the strikers exacerbated the country's financial crisis, leading to hyperinflation.
• 💸 The value of the German mark plummeted, with people needing suitcases full of money to buy basic goods.
• 🛑 Gustav Stresemann, appointed Chancellor, ended the Ruhr resistance to stabilize the economy.
• 💬 Stresemann resumed reparation payments, leading to the eventual withdrawal of French and Belgian troops from the Ruhr.
• 💥 Adolf Hitler and General Ludendorff attempted a failed coup in Munich in November 1923, resulting in their arrests.
• 🪙 Hyperinflation was brought under control by replacing the worthless mark with a new currency.
• 🇺🇸 The Dawes Plan of 1924, led by an American, reduced Germany's reparations payments, helping stabilize the economy.
• 🤝 The Locarno Pact of 1925 improved relations between France, Belgium, and Germany, with Germany joining the League of Nations in 1926.

Q & A

Why did Raymond Poincaré, the new French Prime Minister, decide to take action against Germany in 1923?

Raymond Poincaré decided to take action because Germany fell behind with their payments, and he wanted to ensure that Germany paid in full and on time.

What was the consequence of France's decision to enforce payment from Germany in 1923?

As a consequence, French and Belgian troops entered the Ruhr on January 11th, 1923, to force the Germans to pay up.

How did the German people and government respond to the French and Belgian occupation of the Ruhr?

The German people and politicians united in a common cause of hatred towards the French. Workers in the Ruhr refused to cooperate with the 'enemy', and the German government supported the strikers, leading to a halt in Germany's industrial heart.

What was the French reaction to the German resistance in the Ruhr?

The French retaliated by bringing in their own workers to get the production moving again and began to harden their attitude towards the Germans, trying to cut the Ruhr off from the rest of Germany.

What was the impact of the occupation and resistance on the German economy in 1923?

The occupation and resistance led to the Great German Inflation reaching its peak, with the value of the mark dropping and banks struggling to meet the increasing demand for paper money.

How did the German government attempt to deal with the economic crisis caused by the inflation?

The government attempted to deal with the crisis by printing more money to pay wages and strikers, which further devalued the currency.

Who was appointed as Chancellor to address the crisis in Germany?

Gustav Stresemann was appointed as Chancellor to address the crisis.

What policy did Stresemann adopt to help the economy recover?

Stresemann adopted a policy of cooperation, calling off resistance in the Ruhr and resuming the payment of reparations to help the economy recover.

What was the outcome of the Dawes Plan in relation to German reparations?

The Dawes Plan, set up by a committee under Charles Dawes, scaled down the reparations so that Germany could afford to pay them.

How did the Locarno Pact of 1925 affect the relations between France, Belgium, and Germany?

The Locarno Pact of 1925 saw France, Belgium, and Germany agreeing to respect their frontiers, and Britain pledged to support any country that was invaded, indicating a reduction in old enmities.

What was the significance of Germany becoming a full member of the League of Nations in 1926?

Germany's full membership in the League of Nations in 1926 signified a further normalization of relations and a recognition of Germany's status on the international stage.

Outlines

00:00

📉 Germany's Economic Struggles and French Occupation

In late 1922, Germany fell behind on reparation payments from World War I, prompting French Prime Minister Raymond Poincaré to take action. On January 11, 1923, French and Belgian troops occupied the Ruhr, Germany’s industrial heart, to force reparations. The German population, united in defiance, organized large protests and strikes, with workers refusing to cooperate. This led to a halt in industrial production, leaving trains idle and crippling the economy. The French, determined to make progress, brought in their own workers and tightened control. German citizens, treated as if entering a foreign land, faced deportations and violence. Riots in Essen led to German deaths, inflaming national hatred towards the French. As unrest grew, French soldiers were killed, further escalating tensions. Meanwhile, inflation surged, making German marks nearly worthless, with citizens losing their savings overnight. The government printed more money to pay strikers, but it only worsened the situation. Eventually, Gustav Stresemann was appointed Chancellor, ending passive resistance in the Ruhr and resuming reparation payments in a desperate attempt to stabilize the economy.

05:00

⚖️ Failed Uprisings and Currency Reform

Amid the chaos of 1923, nationalist sentiment boiled over. Adolf Hitler and General Ludendorff, unhappy with the government's perceived capitulation, led an unsuccessful coup in Munich. Known as the Beer Hall Putsch, it ended with 14 deaths, and both leaders were put on trial. Ludendorff was acquitted, but Hitler was sentenced to prison, where he used his time to reflect. Meanwhile, the German government made progress in stabilizing the economy. A new currency replaced the worthless mark, and an international committee led by American Charles Dawes scaled down Germany’s reparation payments. In 1924, the German government accepted the Dawes Plan, and France agreed to withdraw from the Ruhr. Stresemann’s policy of cooperation culminated in the Locarno Pact of 1925, where Germany, France, and Belgium agreed to respect borders, with Britain pledging to defend any invaded country. By 1926, Germany was admitted into the League of Nations, signaling its reintegration into the global community. Despite these positive developments, underlying resentment lingered beneath a surface of newfound prosperity, with Germans now able to enjoy a semblance of normalcy after years of turmoil.

Keywords

💡Reparations

Reparations refer to the payments Germany was required to make after World War I, as part of the Treaty of Versailles, to compensate the Allies for the damage caused during the war. In the script, Germany falls behind on its payments, leading to the French occupation of the Ruhr. The concept of reparations is central to the economic crisis Germany faced in the 1920s, which contributed to hyperinflation and social unrest.

💡Ruhr Occupation

The Ruhr occupation refers to the 1923 invasion of Germany's industrial heartland by French and Belgian troops. This action was taken when Germany defaulted on its reparation payments. The occupation led to passive resistance from German workers, resulting in a halt in industrial production, worsening the economic crisis in Germany. This event highlights the tensions between Germany and France in the post-World War I period.

💡Hyperinflation

Hyperinflation is a situation where prices increase rapidly as a currency loses its value. In the video, Germany's hyperinflation in 1923 is a key consequence of the economic strain caused by reparations and the Ruhr occupation. The German government printed more money to pay workers and meet expenses, but this only worsened the crisis, causing life savings to become worthless and exacerbating social unrest.

💡Passive Resistance

Passive resistance refers to the nonviolent refusal to cooperate with authorities or occupiers. In the script, German workers in the Ruhr region engage in passive resistance by refusing to work for the French and Belgian occupiers, which brings industrial production to a halt. The German government supported this resistance, but it further weakened the economy and led to violent clashes.

💡Versailles Treaty

The Treaty of Versailles was the peace agreement that ended World War I and imposed severe terms on Germany, including reparations and territorial losses. In the video, the treaty is mentioned as a source of humiliation for Germany, contributing to the country's economic and political instability. The occupation of the Ruhr and the reparations issue both stem from the treaty's harsh terms.

💡Gustav Stresemann

Gustav Stresemann was the German Chancellor and later Foreign Minister who played a crucial role in stabilizing Germany's economy and improving its international standing in the mid-1920s. In the video, Stresemann is depicted as taking the difficult but necessary steps to end passive resistance in the Ruhr and resume reparations payments, which helped ease tensions with France and bring about economic recovery.

💡Dawes Plan

The Dawes Plan, introduced in 1924, was an arrangement to ease Germany's reparation payments and stabilize its economy. The plan involved scaling down the payments and securing foreign loans to assist Germany in meeting its obligations. The script explains that the plan was a turning point, helping to bring inflation under control and facilitating the withdrawal of French troops from the Ruhr.

💡League of Nations

The League of Nations was an international organization established after World War I to promote peace and cooperation between countries. In the script, Germany's admission to the League in 1926 is portrayed as a symbol of its reintegration into the international community, following the diplomatic successes of Stresemann. This marked a significant improvement in Germany’s foreign relations after years of isolation.

💡Locarno Pact

The Locarno Pact, signed in 1925, was an agreement between Germany, France, Belgium, and Britain to respect their borders and avoid conflict. The pact is highlighted in the script as one of Stresemann’s major diplomatic successes, which helped reduce fears of French invasion and improve relations between Germany and its neighbors. This pact is seen as a step toward greater European stability in the post-war period.

💡National Socialism

National Socialism, or Nazism, refers to the ideology of Adolf Hitler's political movement. In the video, Hitler and the Nazi Party are depicted as attempting to exploit Germany’s economic and political instability, especially during the Ruhr occupation and hyperinflation, to gain support. Although their 1923 uprising failed, it marked an early stage in Hitler’s rise to power, driven by nationalist sentiment and opposition to the Weimar government.

Highlights

Germany fell behind on reparations payments in late 1922.

French and Belgian troops entered the Ruhr on January 11, 1923, to force Germany to pay.

The German people and politicians united against the French occupation.

German workers in the Ruhr went on strike, halting industrial production.

French troops brought in their own workers, escalating tensions with the Germans.

Violence erupted, leading to riots and the killing of German workers in Essen in March 1923.

The hyperinflation crisis in Germany worsened in 1923, with the mark becoming worthless.

The German government printed more money, worsening the inflation crisis.

Gustav Stresemann became Chancellor and called off resistance in the Ruhr to stabilize the economy.

Germany resumed reparations payments to get the French out of the Ruhr.

Adolf Hitler and General Ludendorff attempted a coup in Munich, which failed.

Ludendorff was acquitted, while Hitler was imprisoned for treason.

The Dawes Plan of 1924 was introduced to scale down German reparations.

France agreed to leave the Ruhr within a year as part of the Dawes Plan.

Germany joined the League of Nations in September 1926 as a full member.

Transcripts

that some would have to be paid in goods

as well as money

most would come from here in the rural

the industrial heart of germany

but at the end of 1922 the germans fell

behind with their payments

and raymond puankari the new french

prime minister

decided to act if germany wouldn't pay

in full

and on the nail then france would help

herself

so on the 11th of january 1923 french

and belgian troops

entered the ruler to force the germans

to pay up

[Music]

there was of course after versailles no

german army big enough to stop them

at first the french believed that they

could make the germans work for them

but suddenly german politicians and

people were united in a common cause

hatred of the french and huge protest

meetings were held all over germany

workers in the ruler refused to

cooperate with the enemy

and the german government supported the

strikers

germany's industrial heart stopped

beating

and the goods trains which should have

been carrying german wealth to france

lay idle in the sidings

the french hit back by bringing in their

own workers to get things moving again

their attitude towards the germans in

the roar began to harden

they tried to cut the ruler off from the

rest of the country

german visitors were searched as if they

were entering a foreign land

they deported the leaders of the passive

resistance

german officials and even the police

the result was violence

german workers had been killed in riots

at essen in march

their funeral was turned into a vast

demonstration of protest

[Music]

hatred grew germans began killing french

soldiers

and at the funeral for one of them

tempers flared into acts of brutality

[Music]

1923 was disastrous for germany

in that year the great german inflation

reached its peak

for some time the value of the mark had

been dropping and as the value of the

notes decreased

so the amount of notes needed to buy

things grew

banks became more and more hard-pressed

to meet the ever increasing demand for

paper money

for their customers suitcases replaced

wallets

to meet this crisis and pay the strikers

in the ruler

the government simply printed more money

and as it lost its value

so it cost more and more to pay wages to

buy food

hundreds of thousands millions whatever

figure was printed on the notes ready

meant nothing

the german mark was worthless as in a

fearful dream

people's life savings were blown away

like leaves in a gale as germany slid

towards disaster

gustav straserman was appointed

chancellor

[Applause]

it was a time of crisis the loss of

production in the rua was making

inflation even worse and strasman

realized that the only way to help the

economy back to normal

was to call off resistance there and get

production going again

the government also announced that

germany would resume the payment of

reparations

it was the only possible way of getting

the french out

but to the nationalists it looked like

yet another pathetic surrender to

germany's enemies

general ludendorff who'd never accepted

that germany had been defeated

gave his support to adolf hitler the

leader of the new national socialist

party

in munich the capital of bavaria they

decided to try and overthrow the

government

but hitler's stormtroopers were not yet

powerful enough and couldn't get the

support of the army or the police

their november uprising failed and

merely ended in confusion

and 14 deaths

ludendorff and hitler were put on trial

for treason

ludendorff was let off hitler was sent

to prison

where he brooded on his failure for a

few months in rather comfortable

surroundings

meanwhile inflation was being brought

under control

the old worthless money was called in

and destroyed

and replaced by a new currency at the

same time the committee under charles

dawes and american was set up by the

allies to scale down the reparations

so that germany could afford to pay them

the german leaders came to london in

1924

and agreed to accept the doors plan

strasman's policy of cooperation began

to pay off at that meeting

the french agreed to pull out of the rua

within a year

their occupation had been unpopular with

their most important allies

especially britain who'd refused to

support that attempt to humiliate

germany

as german industry returned to normal

after the chaos of

occupation and inflation strasman

brought off another triumph

this time at locano in switzerland

under the lacano pact of 1925

france belgium and germany agreed to

respect the frontiers between them

and britain said she'd support any

country that was invaded

old enmities seem to be disappearing and

germany no longer feared the threat of a

french invasion

finally at geneva in september 1926

germany became a full member of the

league of nations

brian now foreign minister of france

welcomes traisman

as an equal it was all very friendly

[Applause]

by now life in germany appeared to be

returning to normal

[Applause]

the germans relaxed

the grim aftermath of the war the

humiliation of versailles

the hysteria of 1923 all gradually faded

beneath the surface of a new prosperity

for a defeated nation still paying for a

lost war

the germans appeared not to be doing

badly

they could afford to live it up a little

have a good time

[Music]

[Music]

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