Category Archives: economics

Sicilian Slave Revolts vs. Romans

From Sicily: An Island at the Crossroads of History, by John Julius Norwich (Random House, 2015), Kindle pp. 36-39:

One thing is certain: that the Romans treated Sicily with little respect. That monstrous inferiority complex to which they always gave way when confronted with Greek culture led to exploitation on a colossal scale. A few Greek cities managed to retain a measure of independence, but much of the island was taken over by the latifundia: those vast landed estates, owned by absentee Roman landlords, setting a pattern of land tenure which was to ruin Sicilian agriculture for the next 2,000 years. Liberty, meanwhile, was almost extinguished as the slave gangs toiled naked in the fields, sowing and harvesting the grain for Rome.

It was thus hardly surprising that the second half of the century should have seen two great slave revolts. Tens of thousands of men, women and children had been sold into slavery during the third-century Sicilian wars, tens of thousands more as a result of warfare on the mainland in the century following. Meanwhile, the Hellenistic east was in a state of turmoil. The tidy distribution of territories among Alexander’s generals was a thing of the past; Asia Minor, Egypt and Syria were now torn apart by dynastic struggles. This meant prisoners, both military and political, a vast proportion of whom, with their families, were swept up by the slave traders and never heard of again. And in Sicily, still steadily developing its agriculture, a strong and healthy worker would fetch a more than reasonable price.

The slave population was in consequence dangerously large, but it gave the authorities little cause for alarm. After all, mass revolts were rare indeed. Almost by definition, slaves—branded, beaten and frequently chained together—were permanently demoralized by the life they led, while the conditions under which they were kept normally made any consultation and planning between them impossible. On the other hand, it should be remembered that many of those who had landed up in Sicily were intelligent and educated, and nearly all of them spoke Greek. And just sometimes, out of sheer desperation, they were driven to action.

The first revolt began, so far as we can gather, in 139 B.C. on the estates of a certain Damophilus of Enna, “who surpassed the Persians in the sumptuousness and costliness of his feasts” and whose slaves most understandably resolved to kill him. Before doing so, however, they consulted another slave, a Syrian named Eunus, who was generally believed to possess magic, or at least oracular, powers. Would the gods, they asked him, give their blessing to such a plan? Eunus’s reply was as categorical as any of them could have wished. He personally marched into Enna with a following of some four hundred fellow slaves; the murder, rape and plunder lasted for several hours. Damophilus and his termagant wife, Megallis, were away in their country villa, but were quickly brought back to the city; he was killed at once, she was handed over to her own female slaves, who tortured her and then flung her from the roof. Eunus had meanwhile been proclaimed King, making his mistress (and former fellow slave) Queen at his side.

Once started, the revolt spread like wildfire. A certain Cleon, a Cilician herdsman working near Agrigento, joined Eunus with 5,000 men of his own; soon they were at Morgantina, then at Taormina. By this time their numbers probably approached the 100,000 mark, though we shall never know for sure. Another mystery is why, in contrast to the speed and efficiency they showed in dealing with similar but much smaller uprisings in Italy, the Romans were so unconscionably slow in sending troops to restore order. Admittedly they had other preoccupations at home and abroad, but the truth is that all through their history the Romans consistently underestimated Sicily; the fact that it was not part of the Italian peninsula but technically an offshore island seemed to lower it in their estimation. Had they properly considered the scale and importance of what was going on, had they sent an adequate force of trained soldiers to the island as soon as the first reports arrived, Eunus and his followers would hardly have stood a chance. As things turned out, it was not until 132 B.C.—seven years after its beginning—that the revolt was finally crushed. The prisoners taken at Taormina were tortured; their bodies, living or dead, were flung from the battlements of the citadel. Their leader, after wandering for some time at liberty, was finally captured and thrown into prison, where he died soon afterward. The vast majority of the rebels, however, were released. They no longer constituted a danger—and, after all, if life were to go on as it always had, slaves were a vital commodity.

Unlike the first, the second slave revolt had a specific cause other than general dissatisfaction. It began in 104 B.C., when Rome was once again under severe pressure, this time from Germanic tribes to the north. In order to deal more efficiently with these, she appealed for military assistance from Nicomedes III, King of Bithynia in Asia Minor.*2 Nicomedes replied that he unfortunately had no young men to spare, thanks to the activities of the slave traders who were seizing so many of them and who were actually protected by the Roman authorities. At this the horrified Senate ordered that all those of Rome’s “allies” who had been enslaved should be released at once. The effect of this decree when it reached Sicily may well be imagined. Huge crowds of slaves assembled before the Governor in Syracuse, demanding immediate emancipation. He granted freedom to some eight hundred, then realized that, if he continued, he would be destroying the entire base of the Sicilian economy. Laying down his pen, he ordered that the still-growing crowds should disperse and return to their homes. Not surprisingly, they refused—and the second slave revolt was under way.

Since the Roman decree—and the Governor’s refusal to enforce it—affected the slaves all over Sicily, the whole island was soon in an uproar.

Leave a comment

Filed under economics, Greece, Italy, labor, Mediterranean, slavery

Who Killed Weimar Democracy?

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 673-678:

Given all the cumulative problems it faced, it is surprising Weimar democracy lasted as long as it did, but we need to remember that it endured longer than Hitler’s Third Reich. The period from 1918 to 1923 was politically and economically turbulent, but democracy survived. Between 1924 and 1929, the economy stabilised, Germany regained international respectability, and democratic rule was never threatened. Even in the period of deep political and economic crisis between 1930 and 1933, during the time of authoritarian ‘presidential rule’, there was no attempt to overthrow the Republic.

The commonly held view is that the ‘Great Depression’ led to the collapse of Weimar democracy, and brought Hitler to power, is not credible. The USA and Britain suffered economic problems often as difficult as those of Germany, but democracy did not collapse in either of those countries. This suggests there was something specific about the nature of the political and economic crisis that was peculiar to Germany at this time.

The two decisive ingredients in the period from 1930 to 1933 were the supreme indifference of President Hindenburg, and his inner circle, to sustain democratic government, and the dramatic rise in electoral support for Adolf Hitler and the NSDAP. It was a toxic mixture of these two factors, operating at a time of deep economic depression, which ensured Germany’s experiment with democracy failed.

Yet the seeds of the Weimar’s democratic tragedy were planted by the type of democratic system established after the November Revolution of 1918, and embedded into the Weimar Constitution of 1919. The November Revolution was a very strange one indeed, which left Germany’s judicial, bureaucratic, and military elite largely intact. Weimar judges punished those on the Left with harsh sentences, while treating radicals on the Right very leniently, and the Reichswehr remained a law unto itself, being more preoccupied with shaking off the military restrictions placed upon it by the Treaty of Versailles than defending democracy.

One of the essential ingredients for the successful transition from an authoritarian to a democratic form of government is the existence of a strong, resilient party of the moderate Right, committed to the ideals of democracy. In Britain, the Conservative Party fulfilled this role, evolving from the late 19th century into a mainstay of the British party system. In Germany, no such party was able to take on that stabilising role. The leading conservative party in Germany was the DNVP. Between 1919 and 1930, its voter support reached a high point of 20.5 per cent and 103 seats in the December 1924 election, but then fell to a low point of 7 per cent at the September 1930 election, when it gained just 41 seats. During the Weimar era, the DNVP was a bitter opponent of Weimar democracy, with a leader in Alfred Hugenberg who moved the party to the extreme Right.

Germany’s military defeat in the Great War also cast a giant shadow over the Weimar Republic. The ‘stab-in-the-back’ myth, which held that Germany was not defeated on the battlefield, but betrayed by Liberals, Jews and Socialists on the home front, remained a powerful one. Some of these negative feelings fed into the general hatred of the terms of the Treaty of Versailles. The inclusion of Article 231, known as the ‘war-guilt clause’, seemed particularly vindictive. Add in the bill for reparations and you have a perfect recipe for deeply held animosity towards democracy. Any government forced to sign such a treaty would have been unpopular, but the fact this task fell to the SPD-led coalition government was deeply damaging for the stability of democracy. The tag ‘November Criminals’ was hung around the necks of those politicians who had instigated the fall of the Kaiser and were responsible for the establishment of democracy.

There were also two aspects of the Weimar Constitution which undoubtedly contributed to the failure of democracy. The first was the voting system, based on proportional representation, which gave Reichstag seats in exact proportion to the votes cast in elections. In Germany, this system did not work. In July 1932, 27 different political parties contested the election, ranging across the political spectrum, with each representing one class or interest group. These differing parties reflected the bitter divisions in German society and made the task of creating stable coalition governments extremely difficult, and eventually impossible. Some coalitions took weeks to form, but could fall apart in days. The last functioning Weimar coalitions were those led by SPD Chancellor Herman Müller between 1928 and 1930, involving the SPD, Zentrum, the DDP, the DVP, but they finally broke apart over the increasing payments of unemployment benefits.

The Weimar Republic also lacked the one key factor that made democracy stable in the USA and Britain – that is, a two-party system, with one left-wing liberal democratic and one conservative party, alternating in periods of power, with each loyal to the democratic system. If there had been a first-past-the-post electoral constituency system, as operated in Britain, then probably a small number of parties would have ruled, and there would have been a better chance of stable government, although given the deep differences between the Weimar political parties that is by no means certain.

Those who drafted the Weimar Constitution were unwittingly culpable in offering a means of destroying democracy. This was the special powers the Weimar Constitution invested in the role of the President. No one realised when drafting the Constitution how an anti-democratic holder of the post could subvert the power of the President. Article 48 gave the German President extensive subsidiary powers in a ‘state of emergency’ to appoint and dismiss Chancellors and cabinets, to dissolve the Reichstag, call elections and suspend civil rights. The two German presidents of the Weimar years were quite different. Social Democrat Friedrich Ebert was an enthusiastic supporter of Weimar democracy. He used Article 48 on 136 occasions during the period 1918 to 1925, but always with the intention of sustaining the Republic by preventing coup attempts, not with the aim of undermining or threatening its existence. Paul von Hindenburg, elected in 1925, was a great contrast. He was a right-wing figure, who had led Germany’s militaristic armed forces during the Great War of 1914–1918. Up until March 1930, Hindenburg never used Article 48 at all. Henceforth, influenced by a small inner circle of advisers, all militaristic and authoritarian in outlook, he appointed Chancellors of his own choosing, who remained in power using emergency powers granted under Article 48.

It was President Hindenburg, therefore, who mortally damaged the infant democratic structure in Germany more than anyone else. It was not the Constitution or the voting system that was the fundamental problem, but the culpable actions of Hindenburg, who chose to deliberately subvert the power it had invested in him. Hindenburg appointed three Chancellors between 1930 and 1933: Heinrich Brüning, Franz von Papen, and Kurt von Schleicher, all of whom governed using emergency decrees granted by the President.

The political crisis after 1930 was deliberately manufactured by Hindenburg, who refused to involve Social Democrats in government, who were the strongest supporters of democracy. It must not be forgotten, however, that from 1930 onwards Adolf Hitler was the single most dynamic and popular politician in Germany. He united the voters on the Right of German politics in a way no other politician had been able to do so since the beginning of the Weimar years. The NSDAP managed to be anti-elitist and anti-capitalist while at the same time being patriotic and nationalist. The spectacular voting rise of the NSDAP from 2.63 per cent of voters in national elections in 1928, to 18.3 per cent in 1930, then to a high point of 37.3 in July 1932, was on a scale never seen in a democratic election before.

It was not by elections that Hitler finally came to power, however, but he would not have even been considered as a potential German Chancellor without his huge electoral support. A total of 13.74 million people voted for Hitler of their own free will in July 1932. Solid middle-class groups, usually the cement that holds together democratic governments, decided to support a party openly promising to destroy democracy. This mass electoral support was the decisive factor that propelled Hitler to a position where he could be offered power. Hitler’s party grew because millions of Germans felt democratic government had been a monumental failed experiment. To these voters, Hitler offered the utopian vision of creating an authoritarian ‘national community’ that would sweep away the seeming chaos and instability of democratic government, and provide strong leadership.

Yet Hindenburg needed a great deal of persuading before he finally made Hitler the Chancellor of a ‘national coalition’. It was former Chancellor Franz von Papen who played the most decisive role in convincing Hindenburg that Hitler could be ‘tamed’ by being invited to lead a cabinet of conservatives. By then, the only alternative to Hitler taking on the role was for Hindenburg to grant Schleicher, the current Chancellor, the power to declare a ‘state of emergency’, ban the Communists and National Socialists, suspend the Reichstag indefinitely and rule with the support of the Reichswehr. Behind-the-scenes intrigues and the personal rivalry between Franz von Papen and Kurt von Schleicher were also factors that played a crucial role in bringing Hitler to power. But it was Hindenburg’s decision in March 1930 to create a presidential authoritarian right-wing regime that was the most decisive step that opened a path towards this solution.

The real problem Hindenburg faced was that the three previous Chancellors, Brüning, Papen and Schleicher, had no popular legitimacy, and no parliamentary support. Hindenburg’s presidential rule had taken Germany down a blind alley. The only politician who could add popularity to Hindenburg’s faltering presidential regime was Adolf Hitler. It was the decision to appoint the NSDAP leader as Chancellor which put the final nail in the coffin of Weimar democracy, and opened the path to catastrophe for Germany and the world. Hindenburg had been the gravedigger and the undertaker.

The history of the Weimar Years is therefore a warning sign of how a democracy under poor leadership can drift towards a form of authoritarian rule that ultimately destroys it, under the pressure of economic crisis and unrelenting political instability. This is a question that continues to engage us today.

Leave a comment

Filed under Britain, democracy, economics, Germany, nationalism, philosophy, religion, U.S., war

Political Violence in Germany, 1932

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 597-599:

Out on the streets, there was an alarming increase in violence between the National Socialists and the Communists. Yet the idea Germany was nearing civil war after 1929 has been greatly exaggerated. On 12 October, the Liberal-left newspaper Die Welt am Montag (The World on Monday) published statistics, based on official sources and newspaper reports, on those killed and injured during political clashes since the beginning of 1923 to July 1931. These revealed that 457 people had been killed, and 1,154 had been injured in the period. However, just over half of those fatalities (236), and one-third of those injured (462), had occurred in 1923 alone. Between 1924 and 1928, the period of economic stability, there had been 66 fatalities and 266 injured. From 1929 to July 1931, the number of deaths increased to 155, with 426 injured. Violence was certainly on the rise after 1930, but it never reached the levels of the 1919 to 1923 period. A closer look at the post-1929 statistics reveals which side suffered more victims. The Communists and Left radicals suffered 108 deaths since 1929, while in the same period, right-wing organisations, including the National Socialists, suffered 31 dead. There were only eight fatalities among pro-republican groups such as the SPD-led Reichsbanner. There were also 10 police officers killed. Most violent clashes resulting in death involved the National Socialists and Communists.

This picture can be confirmed in greater detail with the help of statistical surveys, and police reports in the German state of Saxony. In 1929, there were 51 recorded Communist–NSDAP clashes, in 1929, this jumped to 172, and then hit 229 in 1931. The most violent clashes happened during indoor meetings. There was, however, a noticeable difference in how the police dealt with these violent confrontations. The police acted against Communist ‘troublemakers’ far more often than against National Socialists. In 1929, the ratio of police interventions was 30 KPD to 11 NSDAP; in 1930, it was 121 KPD to 32 NSDAP, and, in 1931, it was 140 KPD to 63 NSDAP. It was only during 1932 that political violence really escalated, with the Prussian Ministry of the Interior recording 155 deaths; of these 55 belonged to the NSDAP and 54 to the KPD.

The information on weapons seized by police during NSDAP– KPD clashes shows that in 1929 the police confiscated only two guns and eight knives, a figure that rose to 17 guns and 181 other weapons in 1930, but in 1931 this fell to 5 guns and 78 other weapons. This is in stark contrast to the earlier Weimar era, from 1918 to 1923, when firearms featured heavily in clashes between Left and Right. As bad as violence was after 1929, it would be totally misleading to suggest the police could not contain it or that Germany was nearing civil war. In rural areas, there were hardly any violent clashes which resulted in fatalities at all.

The front line of Left–Right violent confrontations after 1929 was primarily in the big cities. Communists felt they ruled the working-class urban streets. Any place that was home to large numbers of industrial workers was prepared to violently resist the advance of the National Socialists on the streets. Communists rarely took action to break up Social Democratic political meetings, except for a few large-scale events, mainly organised by the Reichsbanner. In contrast, Communists adopted a proactive approach whenever the National Socialists held rallies and meetings in the big cities. Most of these violent confrontations occurred during and after indoor meetings. Communists initiated most of them, keen to emphasise National Socialists were not welcome in working-class areas. Well-organised Communist gangs arrived in force at NSDAP meetings, hell bent on violence. The police authorities, however, had a broad spectrum of special powers to break up or ban demonstrations.

As violence escalated, a culture of political martyrdom emerged, with those killed on both sides receiving elaborate funerals attended by thousands of activists.

Leave a comment

Filed under democracy, economics, Germany, labor, nationalism

Austrian-German Banking Crisis, 1931

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 575-576:

The bungled fiasco of the German–Austrian Customs Union led directly to the Austrian banking crisis. On 13 May, the Creditanstalt, the largest and most respected Austrian bank, suddenly declared bankruptcy, sending shock-waves through world financial markets. Jittery creditors everywhere withdrew funds. The bank’s initial losses amounted to 828 million Austrian schillings. During May, Austria’s foreign-currency reserves fell by 850 million schillings. Otto Ender, the Austrian Chancellor, was forced to put together a government-backed financial rescue plan by buying up 100 million schillings’ worth of Creditanstalt stock. Support in this rescue package was given by the powerful Rothschild banking family of Austria, and on 16 June the Bank of England provided a sizeable loan to the Austrian government to assist with the plan.

The Austrian banking crisis had a domino effect, with the panic-selling of the stock of German banks soon following. In early June, the Reichsbank announced it had suffered the withdrawal of 1 billion Reichsmarks since the Creditanstalt collapse, with foreign deposits falling by 25 per cent. The German government was now having great difficulty in raising foreign loans to service its huge public-spending deficit, and the Reichsmark was falling on currency markets. On 5 June, Brüning issued the Second Emergency Decree for the Protection of the Economy and Finances, which brought in reductions in welfare benefits, wage cuts for all public-sector employees, plus a ‘crisis’ tax, levied on better-paid white-collar workers, and increases in sales taxes on sugar and imported oil. The one concession to organised labour was a promise of 200 million Reichsmarks for the funding of public works. This new decree was accompanied by a blunt declaration from Brüning that ‘the limit of privations which we can impose on the German people had been reached’, and he further warned that Germany could not make the reparations payments due in 1931 under the Young Plan.

On 7 June, Heinrich Brüning, accompanied by Julius Curtius, the German Foreign Minister, met with Ramsay MacDonald, at Chequers, the British Prime Minister’s picturesque country retreat. The purpose of the visit was for a ‘mutual exchange of views’. Also present was Montagu Norman, the Governor of the Bank of England, who expressed dissatisfaction with Brüning’s announcement of his intention to suspend reparations payments. In response, Brüning explained his declaration was really a warning of what would happen if the issue of Germany’s payments for 1931 was not urgently addressed. The friendly meeting only yielded the release of a joint statement, which laid stress on ‘the difficulties of the existing position in Germany and the need for alleviation’.

The US President, Herbert Hoover, was following European economic affairs closely, and he fully appreciated the impact the financial collapse of German banks would have on American creditors. The magnanimous proposal by Hoover of a payments moratorium was initially opposed by the French government, Germany’s principal reparations creditor, but was finally accepted, on 6 July, with the condition that the German government spent the one-year saving on reparations for domestic rather than military purposes. The Hoover Moratorium really marked the beginning of the end of German reparations payments, which were never resumed.

Leave a comment

Filed under Austria, Britain, democracy, economics, France, Germany, nationalism, U.S., war

Weimar Elections of 1930

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 552-554:

Given the horrors that followed, it now seems impossible to understand why German people of their own free will could vote in such large numbers for a party pledged to destroy democracy. In Dresden, Victor Klemperer, an academic at Dresden University, wrote in his diary: ‘107 National Socialists. What a humiliation! How close are we to civil war!’ In contrast, the Nobel Prize-winning physicist Albert Einstein told the Jewish Telegraphic Agency there was no reason for despair over Hitler’s strong showing in the national elections because ‘it was only a symptom, not necessarily of anti-Jewish hatred, but was caused by unemployment and economic misery within the ranks of misguided youth’.

It seems 24 per cent of NSDAP voters were voting in an election for the first time, many of them young people and pensioners, 22 per cent of new NSDAP voters had previously voted for the DNVP, with 18 per cent moving from the middle-class liberal parties, and 14 per cent from the Social Democrats. In sum, the biggest movement of voters to the NSDAP came from the middle-class conservative and liberal parties, and the party received the least swing votes from the KPD and Zentrum. There was also a strong reluctance to vote NSDAP in the big cities with large working-class industrial workers.

The most impressive gains for the NSDAP were in Protestant rural areas, especially those of northern and eastern Germany stretching from Schleswig-Holstein to East Prussia. The party performed very well in large northern states such as Pomerania, Mecklenburg, Hanover, Brunswick and Oldenburg, and achieved comparable results in predominantly Protestant Franconia and Hesse-Nassau. Voting support in these areas came primarily from elements of the lower middle class: small shopkeepers, farmers, self-employed tradespeople such as builders, plumbers, electricians and joiners, but there was also an upswing of support from middle-class white-collar workers, lower civil servants, teachers and university students. It was these who would represent the party’s core voters during its rise to power, but the NSDAP was not simply a ‘middle-class protest party,’ as was once thought. It is now clear Hitler’s party was able to gain support from all sections of society in a way the other political parties could not.

It was not, as is often supposed, primarily economic misery that drove voters to the NSDAP. Hitler’s campaign had focused on the failure of the Weimar political system to solve Germany’s problems, and this issue seems to have struck a far stronger chord with voters than the state of the economy. There was a growing loss of confidence in the Weimar political system, which made the decision to vote for a party that was not tainted by involvement in that system much easier. An editorial in the Frankfurter Zeitung spoke of an ‘election of embitterment’ in which voters expressed deep disaffection with ‘the methods of governing or rather non-governing’ of parliamentary government.

Hitler’s dramatic election breakthrough had a devastating impact abroad. There was a large withdrawal of gold and foreign currency from the Reichsbank, and a sharp fall in German stocks on international markets. Even larger German banks were shaken by the wave of panic selling. Julius Curtius, the Foreign Minister, who was in Geneva while the League of Nations was in session, reported when he heard the results: ‘the mood was one of the greatest alarm’. The world now started taking much greater interest in Adolf Hitler.

Leave a comment

Filed under democracy, economics, education, Germany, labor, nationalism, religion

Russo-German Rearmament, 1926

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 417-419:

The year ended dramatically with another domestic political crisis, revolving once again around the activities of the Reichswehr. It began on 3 December, when the Manchester Guardian published an article by its Berlin correspondent, Frederick Voigt, on the clandestine connection between the Reichswehr and the Soviet government, headlined ‘Cargoes of Munitions from Russia to Germany’. The article gave details of an agreement between the Junkers Company and the Soviet government to build factories for the manufacture of military aircraft. Details of this plan fell into the hands of Voigt, who also discovered plans for the building of chemical plants in the Soviet Union that would manufacture poison gas for both countries. Voigt further revealed that a Soviet cargo ship loaded with ammunition and weapons had sunk in the Baltic, en-route to Germany. A second article by Voigt, published on 6 December, with the headline ‘Berlin Military Transactions’, gave details about the building of a Junkers plant in Moscow, which was intended to manufacture 100 aeroplanes for German use. It was clear Seeckt had sanctioned these plans, and officers of the Reichswehr had travelled to Russia on false passports to disguise their identities.

On 9 December, the Social Democratic newspaper Vorwärts printed these startling revelations, under the headline: ‘Soviet Grenades for German Guns’. The Social Democrats were given further damaging information about German secret rearmament: in the harbour of Stettin, local stevedores had observed freighters bringing in artillery shells from Russia for delivery to the Reichswehr. These workers admitted they were given extra money in return for a promise of secrecy. On 16 December, Philipp Scheidemann, a prominent Social Democratic member of the Reichstag, used parliamentary exemption from prosecution to deliver a devastating speech outlining details of the Russo-German secret rearmament, during which he called for the resignation of Otto Gessler, the Defence Minister. Right-wing nationalists called Scheidemann ‘a traitor’ and walked out of the debating chamber. Of course, the allegations made by Scheidemann were not new, but the effect of revealing them in a Reichstag debate raised the political temperature to boiling point.

The Social Democrats called on the Chancellor, Wilhelm Marx, to immediately remove Gessler as the Defence Minister and reform the Reichswehr. Failure to act would compel them to withdraw their support from the government. On 17 December, the day after Scheidemann’s incendiary speech, the Social Democrats tabled a vote of no confidence against the Marx government, which was carried by a vote of 249 to 171, with the DNVP surprisingly voting for the motion because they were determined to join the next government.

The third Marx cabinet resigned on 18 December, but agreed to Hindenburg’s request to stay on in a caretaker capacity until a new government was formed. For the third year running, Germans celebrated Christmas with another government crisis. Once again, it would not be resolved until the New Year.

Leave a comment

Filed under economics, Germany, industry, military, nationalism, USSR

New Reichsmarks and Elections, 1924

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 341-343:

Whilst the Allied Control inspection was in progress in the autumn of 1924, there was a huge shake-up in German currency. On 11 October, the Reichsmark (RM) was introduced, as part of the Dawes Plan [to pay war reparations under the Versailles Treaty], as a permanent replacement for the interim currency, the Rentenmark, which had restored economic stability, and the old Papiermark, which had collapsed under the weight of hyperinflation. The denominations of Reichsmarks came in lower-value coins and banknotes of 5M, 10RM, 20RM, 50RM, 100RM and 1,000RM. Each Reichsmark was divided into 100 Reichspfennigs. Germany finally had a stable currency once again, guaranteed by the independent Reichsbank. The Reichsmark remained the German currency until it was replaced by the Deutsche Mark on 23 June 1948, which itself was succeeded by the Euro in 2002.

The German national election took place on 7 December 1924. Voter turnout was 78.8 per cent. The parties who had supported the Dawes Plan did well. The party gaining the most seats was the SPD, which won 131 seats, a gain of 31 from May 1924, with a popular vote of 26 per cent (7.88 million), up 5.5 per cent. The middle-class parties made smaller gains. The DVP, led by Gustav Stresemann, won 51 seats, up from 45, and polled 3.05 million votes, or 10.1 per cent of the electorate, an increase of 0.99 per cent since May. Zentrum won 69 seats, up from 65, polling 13.6 per cent overall (4.11 million), only up by a narrow 0.22 per cent since May. The DDP improved its position slightly, winning 32 seats, up from 28, taking 6.3 per cent of the popular vote (1.91 million), an increase of 0.6 per cent. The big electoral surprise was the performance of the nationalist DNVP, which improved its position, winning 103 seats, an increase of eight from May, taking 20.5 per cent of the popular vote (6.20 million), an increase of just 1 per cent.

The two other parties who had opposed the Dawes Plan, the Communists and the National Socialists, performed poorly. The KPD won 45 seats, a loss of 17 seats since May, polling 8.9 per cent of votes (2.7 million), down 3.7 per cent. The National Socialist Freedom Party (NSFP), led by Ludendorff, won 14 seats, down 18 on May, polling a total vote of 3 per cent (907, 242), down by 3.55 per cent. The mediocre performance of these extreme parties was proof of the change that had come over the economy since the May election. The gradual consolidation of economic affairs was clearly impacting on voting behaviour. Inflation was now under control and unemployment was falling. This meant the working classes and the lower middle class were much better off than they had been six months earlier. In these circumstances, the parties of the extreme Right and Left seemed much less attractive.

Leave a comment

Filed under democracy, economics, Germany, labor, nationalism, war

Revolts Left, Right, and Rhenish, 1923

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 289-291:

The Munich Beer Hall Putsch is the most notorious event in the early history of Hitler and the National Socialist Party (NSDAP). It was hurriedly planned, bungled in execution, and resulted in humiliating failure. Because of what came later it has been elevated to the status of a monumental event, when in fact what occurred was a small, localised revolt, confined to Munich, which lasted a few hours. It failed because Hitler had allowed his party to become a purely paramilitary organisation involved in an ill-defined conspiracy with disparate Bavarian right-wing politicians. Hitler, who had never been brought into the heart of Kahr’s conspiracy, had whipped up his own supporters into a frenzy only to find that he had already been deserted by his supposed co-conspirators before he ever arrived at the Bürgerbräukeller.

Gustav Stresemann gave a speech on 11 November 1923 in which he reflected on the recent events in Munich, admitting that ‘Germany is now confronted with the demand for a dictatorship’, but he stressed that anyone thinking a dictatorship would improve matters was making a ‘great mistake’. The recent attempt by Hitler to bring about a dictatorship via a beer hall in Munich would have brought no help to the German people. Stresemann was most ‘deeply shaken’ by the involvement of Ludendorff in Hitler’s attempted coup. Stresemann thought a ‘destructive force’ such as Hitler’s movement represented could never have provided competent government for Germany, even if he had succeeded.

At the same time as the left-wing revolt in central Germany and the right-wing struggle in Bavaria were going on, a much more dangerous threat to the territorial unity of the Weimar Republic had erupted in the Rhineland. In the occupied area, separatist associations and parties flourished, primarily under the patronage of the French occupying authorities. The Reich government was powerless to intervene, as it was prohibited from using the Reichswehr in the demilitarised Rhineland under the terms of the Treaty of Versailles.

The leading figure in the Rhineland separatist movement was Hans Dorten, the wealthy owner of a porcelain company, who created the Rhenish People’s Union (Volksvereinigung), which demanded a Rhenish republic as an autonomous state within the Reich, but his opponents suspected his real aim was an independent Rhenish republic. In the occupied Ruhr the separatist movement also flourished, with various groups sprouting up, including the Rhenish Republic People’s Party and the Rhenish Independence League. Separatists armed themselves, held demonstrations, occupied town halls, and called for the foundation of an autonomous Rhenish republic. Some of their supporters even advocated the full integration of the Rhineland into France. After the end of passive resistance, separatist demonstrations broke out in several Rhineland cities. On 21 October, separatists led by Leo Deckers captured the City Hall in Aachen, and proclaimed a Free and Independent Rhenish Republic. This so-called Rhenish Republic was based in three areas: North (Lower Rhine), South (Upper and Middle Rhine) and the Ruhr, but it received little support from the local population.

The French gave the impression in many places they supported the separatists. The military authorities thought a Rhineland buffer state would offer additional security from a future German invasion, and there is no doubt the French provided arms and offered military security for separatist demonstrations. This was especially true in the Bavarian Palatinate, where the French General Georges de Metz, was in command. He encouraged the local state parliament to proclaim the Palatinate’s independence on 24 October. On 26 October, Paul Tirard, the French High Commissioner, announced the separatists were also in effective control of Koblenz, but it had been recaptured with French military support.

Leave a comment

Filed under democracy, economics, France, Germany, industry, labor, military, nationalism

Weimar-Soviet Rapprochement

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 229-230, 232:

The Treaty of Rapallo, signed on 16 April, was the first of Germany’s major diplomatic surprises of the inter-war period. The agreement was not the result, as is often supposed, of a spur-of-the-moment flight of inspiration by Rathenau, but resulted from painstaking secret diplomacy by the German Foreign Ministry, led by Maltzan, which had already resulted in the signing of a Russo-German trade agreement on 6 May 1921, and had also led to the formal diplomatic recognition of the Soviet government by the German government.

The Treaty of Rapallo was called a ‘treaty of friendship’, with both signatories agreeing to improve trade relations by offering each other ‘most favoured’ trading status, re-establishing normal diplomatic relations, and renouncing reparations claims against each other. The German government also agreed to waive indemnities and losses sustained by German citizens due to the abolition of private property in Soviet Russia. The treaty did not contain any secret military provisions, but secret military cooperation did develop in the years following.

The agreement came as a huge surprise to the British and French governments. Their first reactions were a combination of anger and fear. The agreement between Europe’s two political outcasts was viewed by the Western Allies as a potential menace to the European balance of power. The French government’s response was particularly bitter. Poincaré voiced his objections plainly in a speech on 24 April, in his home town of Bar-le-Duc. He declared the treaty a provocation and reiterated his determination to ensure the complete fulfilment of the provisions of the Treaty of Versailles by Germany. He also warned that if the Allies could not agree how to secure their treaty rights and reparations payments, then the French government would resort to unilateral action against Germany.

The British government was also deeply alarmed. Lloyd George had been trying to create an alliance of the non-socialist countries to force Soviet Russia to recognise the debts incurred by the deposed Tsarist regime before the 1917 Bolshevik Revolution. The release of Soviet Russia from the diplomatic ghetto gave him no pleasure whatsoever. Lloyd George had also been trying to restrain Poincaré from taking unilateral military action by occupying the Ruhr, and he thought the Treaty would only serve to gain support in France for military action.

A belief commonly held among the Allies was that the treaty contained secret military clauses. Both the German and Soviet governments denied this, publishing the treaty in full to pour icy water on this accusation. Yet soon after the signing of the Treaty of Rapallo, Seeckt did conclude a secret agreement with the Russian Army general staff. To conceal secret German military training and rearmament, Seeckt was granted generous funds from the German government to set up the Society for the Encouragement of Commercial Enterprises (GEFU). Under cover of this organisation, he negotiated opportunities for German military training in the use of tanks and aircraft in Soviet Russia. This led to the later creation between 1929 and 1933 of the secret Kama Tank school near Kazan, in the Soviet Union, which trained Germans in the use of modern tanks, and the Lipetsk Fighter-Pilot school, in Lipetsk, also in the Soviet Union which trained German pilots. In return, Russian officers gained valuable training in military strategy from their German counterparts. The Russian military were also commissioned to manufacture artillery ammunition, planes, and poison gas for Germany. These secret military training arrangements and armaments supply deals remained in effect throughout the Weimar years.

Leave a comment

Filed under Britain, democracy, economics, France, Germany, military, nationalism, USSR, war

Weimar Inflation, 1921–22

From The Weimar Years: Rise and Fall 1918–1933, by Frank McDonough (Bloomsbury, 2023), Kindle pp. 218-219, 238, 242:

The Weimar Republic would have undoubtedly been helped by having a stable economy, but instead it was fragile, with a rate of growth well below that of its major competitors. German growth from 1913 to 1929 was 0.3 per cent, compared to 1.4 per cent in the UK and 2.2 per cent in the USA. The state of the German budget in 1921 made grim reading. The accumulated government debt was over 400 billion marks. The government had to also bear the cost of food and wage subsidies to deal with rising inflation. The Weimar government refused to cut expenditure or to raise taxes to deal with the deficit. This kept people in jobs. Unemployment in 1921 was at a record low of 0.9 per cent.

In response to rising prices, the German government simply printed money, which only served to push prices up still further. The rising cost of living was already causing industrial unrest in the Ruhr, in the autumn of 1921, and led to bread riots. There were also severe shortages of food in shops. Prices of basic goods rocketed by 40 per cent in the last three months of 1921. Inflation was worst for those on fixed incomes, as it was gradually wiping out their savings and reducing their real spending power. This affected even previously affluent pensioners and those with investments, usually people in solid salaried middle-class occupations such as academics, civil servants, and lawyers. War widows, disabled war veterans and those on welfare on fixed benefits also suffered greatly from the rise in the cost of living.

It would be wrong, however, to think that inflation was bad for everyone. Industrial workers, supported by strong unions, saw their working hours decrease, but their wages increase, often in line with inflation. Big industry also did very well, with industrial production increasing by 20 per cent in 1921–22. The rich industrialists – among them Hugo Stinnes, the richest of them all – grew much richer during the era of high inflation and spent their money on material assets, especially property and new machinery. They also had access to foreign currency loans at low interest rates, and because of inflation interest payments on these were reducing week by week.

Meanwhile, Germany’s reparations payment difficulties continued. During July, prices inside Germany rose by 50 per cent, which was then accepted as the beginning of the hyperinflation period. A litre of milk had cost 7 marks in April 1922, but rose to 16 marks in August, and then to 26 marks by mid-September. The prices of other basic goods rose in a comparable manner. The German government response to rising inflation was to continue printing money, with the number of marks in circulation rising from 35 billion in 1919 to 200 billion in 1922.

Hyperinflation led in turn to a dizzying fall in the value of the German mark, which the Reichsbank, lacking gold and foreign currency reserves, was powerless to stop. On 29 July, the mark hit a new low of 650 to 1 US$. The German government claimed this fall in the value of German currency was linked to the demand by the Allies for cash reparations payments. State and local authorities began to issue money tokens called Notgeld [’emergency money’] to replace payments in worthless paper marks.

On 14 August [1922], the Conference on Reparations ended without any agreement on Germany’s request for a further payment holiday. On the next day, the German government once more defaulted on its reparations payments, claiming it could not afford to pay. The downward tumble of the mark continued. On 24 August, it plummeted to a new all-time low of US$2,000 to 1 mark [sic; should be 2000 marks to 1 US$!], or 9,000 to the British pound. On 31 August, the Allied Reparations Commission decided to grant Germany an exceptional six-month moratorium on reparations payments.

Leave a comment

Filed under Britain, democracy, economics, France, Germany, industry, labor, nationalism, U.S., war