My Amazon Review of Volker Ullrich's "Germany 1923: Hyper Inflation, Hitler's Putsch and...."

 Weimar’s Trial by Fire

I previously reviewed Volker Ullrich’s two volume biography of Adolf Hitler. ( See: Shulmaven: My Amazon Review of Volker Ullrich's "Hitler: Ascent, 1889-1939" and Shulmaven: My Amazon Review of Volker Ullrich's "Hitler: Downfall, 1939-1945 )                                      Here the distinguished German historian focuses in on the critical year of 1923 which almost brought with it the premature death of the then five-year year-old Weimar Republic. His hero is the grand coalition prime minister, Gustav Stresemann, who manages to hold it together long enough so that the nascent republic survives its first trial by fire. It won’t be so lucky the next time.

 

What Stresemann faces is a hyper inflation that brings the Mark’s valuation down to 4.2 trillion to the dollar, the French occupation of the Ruhr for nonpayment of reparations, the Hitler Putsch in Munich, and a communist rising ordered by the Comintern in Moscow in Saxony, Thuringia, and Hamburg.  If this weren’t enough a separatist movement arose in the Rhine Valley where one of the leading figures was Cologne mayor Konrad Adenauer. As Keynes noted in his “Economic Consequences of the Peace,”  

       “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction and does it in a manner which not one man in a million is able to diagnose.”

 

Indeed, it was this inflation that destroyed the relationship between debtors and creditors, wiped out middle-class savings and immiserated huge swaths of the hitherto prosperous middle-class. Although not fatal at the time, when hard times returned to Germany in 1930, it happened with a vengeance.

 

Yet through it all, with all of its inherent faults, parliamentary democracy survived in Germany. By the end of the year the introduction of the Rentenmark, stabilized the currency which created the precondition for a substantial economic recovery in the late 1920’s. Working very effectively behind the scenes was U.S. Ambassador Alanson Houghton who worked tirelessly with Stresemann to get German acceptance of what was to become the Dawes Plan that enabled American loans to Germany. Later when American credit dried up, the roof fell in.

 

All the while Germany was in political and economic crisis the arts were flourishing. Germany became the second largest producer of motion pictures with such luminaries as Emil Jennings, Fritz Lang, and Conrad Veidt. Veidt would go on to play Major Heinrich Strasser in “Casablanca.” There was also the artist George Grosz, the playwright Bertolt Brecht and the founder of the Bauhaus, Walter Gropius.

 

Underneath it was a far right that never accepted democracy, industrialists who sought to undo the labor reforms of 1918, a judicial system that punished the Left far mor more severely than the Right.  Through it all Stresemann, originally a man of the Right, ended up being one of Weimar’s biggest supporters and by 1925, as foreign minister, he negotiated the Locarno Treaty with France confirming Germany’s western borders.

 

After reading this book I became more optimistic about the future of America. If the fledgling Weimar democracy could survive the challenges discussed above, certainly the 250-year-old democracy of the United States can survive our current dyspepsia. Germany faced far worse and came through it.

For the full Amazon URL see: Weimar's Trial by Fire (amazon.com)