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1923
In 1923, Germany had problems so big most couldn't be tackled and lead to ultimate economic disasters. This was the year that everything seemed to fall apart. The winning allies who enforced The Treaty of Versailles were tested by their own. To see if they could really work as a team. Inflation became Hyperinflation and money didn't mean a thing any more which was clearly the biggest economic disaster and political differences came to a stand still...
The Treaty of Versailles:
On the 9th of January 60,000 French and Belgian soldiers took control of every mine, steelworks and railway in the region of the Ruhr. This had been discussed with the other allies but Britain had refused so France carried on with their revenge plan. Machine gun posts were set up in the streets which would lead to many problems with trade coming out of the Ruhr (France didn't realize this by looking at the mess they made of their failed attack) A passive resistance campaign was ordered and eventually it won. France had invaded and left with nothing. In November a new currency is introduced the Rentenmark.
Click on the link below to see a short film explaining what happened in the Ruhr in 1923.
Political differences:
Hitler and his National socialist 'Nazi' party try to take control and are supported by some leading army figures. The take over failed and the leaders were arrested and put on trial for treason. Little did we know that eventually the Nazi party would come into power and Adolf Hitler would try and gain power of the world. The Government prints more money to pay the wages of workers on strike in the Ruhr.
Economic disasters:
The German economy collapses completely due to hyperinflation. In January the price of bread in Berlin costs 250.00. The increase is huge. In June the price increases to 3,465.00. By September it has increased again to 1,512,000.00. But that wasn't the worst by November the price had risen to the high and ridiculous amount of 201,000,000,000.00. Hence the change from the German mark to the Rentenmark.
Here is a table of how hyperinflation affected the Germans...
| Item |
Price in marks in |
||
| 1913 | Summer 1923 | November 1923 | |
| 1 kg loaf of breaf | 0.29 | 1,200 | 428,000,000,000 |
| 1 egg | 0.08 | 5,000 | 80,000,000,000 |
| 1 kg of butter | 2.70 | 26,000 | 6,000,000,000,000 |
| 1 kg of beef | 1.75 | 18,800 | 5, 600,000,000;000 |
| 1 pair of shoes | 12.00 | 1,000,000 | 32,000;000;000,000 |
(Table taken from Germany 1918-45 text book by Josh Brooman Source 1 pg 30)
Also look at how the prices of bread turned out over the past few years and what it looks like in 1923 (This is the price of bread in German marks in Berlin over the years...
|
1918 |
0.54 | |
|
1921 |
3.90 | |
|
1922 |
163.50 | |
|
1923 |
January | 250.00 |
| June | 3,465.00 | |
| September | 1,512,000.00 | |
| November | 201,000,000,000.00 | |
(Table taken from Germany 1918-45 textbook by Paul Grey and Rosemarie Little pg 12)
As the price rose for everyday things it was getting harder to control. If the government had not kept reprinting money then this may not have been such a massive problem. Or even if Germany hadn't been expected to pay such a huge sum of reparations things could've turned out differently...