Was the hyperinflation crisis of 1923 the worst threat so far to the Weimar Republic?

Made by Fariha Uddin, Rothna Akhter and Nabilah Chowdhury

Hyperinflation
Long Term
Cause
Medium
Term Cause

Short Term
Cause

• Imperial Germany’s financial policy- not to increase taxation
• Shortage of consumer goods and higher demands meant prices rose
• Weimar government: Increased taxation but didn’t balance the budget
• Relied on revenue from consumer goods but required inflation to continue
• Reparation- added to the economic burden
• ‘Holiday’ from making reparations payment
• Occupation of the Ruhr
• Passive resistance- strikes and promises to pay for wages meant government was unable to collect tax

Ruhr Crisis 1923
• Germany defaulted on reparations due to the domestic financial crisis
• 60,000 Franco/Belgian troops occupied the Ruhr
• Passive resistance: refused to work/collaborate with the Belgian and French troops • German government promised to pay their wages

Ruhr

Consequences
• French & Belgian authorities arrested mine owners and took over railways and mines
• German government unable to collect tax from the Ruhr- French reduced their coal supply • Hyperinflation: Printed even more money which led to the collapse of the currency
Price of bread
• Prices ran out of control
Jan 1923

Nov 1923

250 marks

428 billion marks

How did Reparations cause economic crisis in 1922-23?

TREATY OF VERSAILLES – placed heavy reparations on Germany.
- Between 1919-21: 23 conferences to discuss levels of reparations to be paid.
SPA CONFERENCE,
JULY 1920

PARIS
CONFERENCE, JAN
1921

LONDON
CONFERENCE, FEBMAY 1921

Reparation payment amounts to each country:
- France: 52%
- British
Empire:22%
- Italy: 10%
- Belgium: 8%
- Smaller powers.

Reparations commission decided upon: 226
MILLIARD GOLD
MARKS. (milliardthousand million)

Set new figure: 132
MILLIARD
GOLDMARKS

GERMAN GOVT
REJECT: EXCESSIVE

Failure to agree/pay 1st instalment would result in the invasion of the
Ruhr by French forces. REPARATION (1918) HYPERINFLATION (1923)
Reparations made matters worse
- 1919: national debt: 144 milliard gold marks
- 1922: 469 milliard marks
- As a result of this huge debt on reparations, German’s kept printing money to cover its debts, resulting in HYPERINFLATION.
- HYPERINFLATION: prices spiralled out of control because the government increased the amount of paper money being printed. This displaced the economy. THUS, REPARATIONS LED TO/ CAUSED HYPERINFLATION.

OVERALL: “Was hyperinflation crisis of 1923 the worst threat so far to the Weimar
Republic?” If not, what was?
YES

NO

- Period of 1918-23 spiralled down for