Saturday, June 7, 2014

1923-9-26 Stresemann, Ruhr

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26th September 1923: Gustav Stresemann ends passive resistance in the Ruhr - HiPo > .
23-8-21 A Democracy Without Democrats: Weimar Republic Explained - Used > .

The 1921 London Schedule of Payments had set out both the reparations amount and the timetable over which Germany was expected to pay for its defeat in the First World War. However, from the very start of the payments Germany missed some its targets. Failure to provide the full quota of coal and timber in December 1922, provided the excuse for France and Belgium to occupy the Ruhr on 11 January 1923.

Occupation was met with passive resistance and the striking workers were paid with money printed by the government. This contributed to the rampant hyperinflation that had begun to cripple the economy from before the occupation began. Gustav Stresemann was aware that the situation was unsustainable and, despite having been Chancellor for only six weeks, called off passive resistance and started to pay reparations again.

By ending the strikes and restarting reparations payments, Stresemann was able to slow down the economic crisis that was enveloping the country and show that he accepted the international realities of the new era. This marked the start of Germany’s international rehabilitation, although within Germany it was met with opposition from both Left and Right extremists. For that reason, Stresemann asked President Ebert to announce a state of emergency under Article 48 of the constitution on the same day.

Despite the anger from some Germans, Stresemann’s actions laid the foundation for the economic recovery that Germany experienced up until the onset of the Great Depression.

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