A Time of Troubles
The Crisis in Postwar Germany
When last we left our beloved Germany, she was in dire straits. The country teetered on the edge of civil war, burdened by crippling debt and experiencing runaway inflation—an extremely precarious situation.
Germany faced an impossible predicament: it could not sustain its own economy while also paying reparations to the Allies. When Germany requested more time, France refused to grant it.
In January 1923, Germany officially defaulted on its debts. The Allies’ response was swift—they invaded. French and Belgian forces occupied the industrial Ruhr region in western Germany for two years.
The German government lodged a formal protest and called upon the workers in the occupied region to strike.
France’s countermeasure was severe: they made arrests, and in some cases, executed resisters.
This occupation enraged the German people, particularly because France violated Germany’s border to occupy the demilitarized zone, and even used colonial troops from Africa as part of the occupation force. It was seen as a direct affront to German honor.
For Germans living in occupied towns like Dusseldorf, the reality was harsh. French soldiers with bayonets patrolled the streets, and striking workers at the coal plants were arrested and replaced by French laborers.
In the evenings, families sometimes faced the humiliation of French officers quartered in their homes—residents would give up their beds, sometimes sleeping on chairs if the couch had already been sold to pay rent.
Government Helplessness and Economic Chaos
The German populace expected their government to respond forcefully, but those hopes were disappointed. When German representatives protested the occupation in the League of Nations, they were ridiculed and dismissed. The government appeared weak and lacked legitimacy in the eyes of its citizens.
Frustration grew. People cursed the Republic for being unable to take a stronger stand, yet life’s practicalities remained—bills had to be paid. In the midst of chaos, local communities began issuing their own currencies, called Notegeld, which functioned as local IOUs.
These emergency currencies were similar to the token coins issued on plantations, which were only usable at the plantation shop and worthless elsewhere. The system was chaotic and short-lived, but it gave communities a temporary means of exchange.
Eventually, the national government took over money printing, but failed to stop the presses, fueling hyperinflation—the more money printed, the less it was worth.
Hyperinflation and Its Effects
As hyperinflation gripped Germany, the value of money dropped by the hour. People rushed to deposit their wages as soon as they were paid, fearing how much their earnings would lose value even in a short walk to the bank. Missing the bank’s closing time could mean significant personal loss.
Those on fixed incomes had no chance of keeping up with their bills, but debtors found a silver lining—they could pay off their obligations rapidly as the currency’s value evaporated.
Despite the turmoil, people tried to maintain some normalcy. For example, a boy named Gunther Goldschmidt recalled taking a fistful of cash to buy candy at a fair, only to be confronted by the sight of numerous war veterans, many severely disabled, begging for survival. The experience was so sobering that he gave his money to the veterans instead.
Political Instability and the Rise of New Leaders
During this time, Walter Rathenau emerged as Foreign Minister. Previously unknown, he quickly became a key figure. Rathenau normalized relations with the newly unified Soviet Union, recognizing that both Germany and the USSR were international pariahs. The Treaty of Rapallo canceled out lingering animosity and rekindled diplomatic ties, unsettling the Allies who feared a military alliance.
Through his efforts, Rathenau helped restore economic stability and international respect for Germany. Sadly, after only six months in office, he was assassinated by Organization Consol, a nationalist and anti-Semitic group. His Jewish heritage was cited as his only “crime.” Tens of thousands attended his funeral, a testament to his popularity even in a time of scarcity.
His death triggered a financial crisis: within two days, the German stock market collapsed and the Mark severely depreciated. Inflation, already rampant, became unimaginable—from 4,500 marks to the dollar in October 1922, to 12 trillion marks to the dollar by November 1923. Prices doubled every few days, and the currency plummeted in value.
The Political Climate: The Emergence of Hitler
In this chaotic environment, Adolf Hitler entered the stage. Unlike Rathenau, Hitler was rough, vulgar, and not even a native German. He was drawn to German nationalist ideology and eventually joined the National Socialist German Workers Party (Nazis), a fringe right-wing group in the chaos of postwar Germany.
The party’s name was misleading; despite including “socialist” and “workers,” it was neither genuinely socialist nor truly for the workers. It was, however, clever marketing.
At first, the Nazis were just one of many far-right paramilitary groups, smaller than many established organizations. They held meetings in Munich beer halls, attracting disillusioned veterans and some influential figures, including former Field Marshal Ludendorff, whose support gave the group credibility.
Beer halls became central gathering places for veterans seeking camaraderie and understanding not found among civilians, especially in a society still unfamiliar with mental health issues like PTSD. Over beer and simple meals, men listened to speakers—some rambled about destiny and Germany’s future, like Hitler, whose fiery rhetoric struck a chord with the desperate and disillusioned.
The Beer Hall Putsch and Its Aftermath
In 1923, Adolf Hitler and his followers attempted a poorly executed coup, known as the Beer Hall Putsch. They stormed a beer hall in hopes of arresting the Bavarian government and then marching on Berlin. The plan failed disastrously when police intervened, resulting in casualties and Hitler’s arrest.
The event made headlines, but was largely dismissed as the antics of extremists. Hitler was tried for treason and sentenced to five years in prison—a lenient punishment given the gravity of his offense. The Republic’s weakness and lack of public faith contributed to the light sentence.
Bavaria, ruled by a leader opposed to the central government, became a stronghold for anti-Republican sentiment. The judicial system and society were generally hostile to the Republic, favoring the political right and viewing it as a safeguard against the spread of communism.
The Fear of Communism and the Fate of the Republic
Many Germans feared communist revolution, inspired by the Russian Civil War and the Red Terror. Middle-class Germans, in particular, saw right-wing parties as the lesser evil compared to the threat of Bolshevism.
American observer Truman Smith wrote that Germans regarded their new republic with cynicism but lived in deadly fear of communism. The left seemed poised to upend society, so the right gained traction as a bulwark against radical change.
As a result, right-wing parties’ popularity would soon surge, further destabilizing the already fragile Weimar Republic.
Ordinary Lives, Extraordinary Times 