Golden age 1924-1828

• Stresemann as Chancellor

  • chancellor for 103 days
  • part of great coalition - DVP ZP SPD DDP
  • ended passive resistance
  • cut expenditure + raised taxes
• New Currency

  1. Nov 1923 - Reichsmark swapped to Rentenmark
  2. 1 trillion Reichsmark = 1 Rentenmark
  3. backed by mortagage on industrial and agricultural land (insufficient gold reserve)
  4. August 1924 - Swapped back to Reichsmark with 30% of value in circulation to prevent inflation
  5. All under direction of Hjalmar Schacht
• Effects of increased taxes and cut expenditure

  • 300,000 civil servants lost their jobs
  • number of bankrupt companies rose from 233 in 1923 to over 6000 in 1924
• Dawes Plan 1924


  Created by Charles Dawes

  Accepted in July 1924

  • total repayment remained £6.6 billion
  • amount payed each year reduced until 1929
  • first year 1000 million marks then increased to 2500 million mark increments per year
  • Germany also received a 800 million mark loan from USA
  • Stresemann called it "no more than an economic armistice"
• Industry

  • interest rates kept high to attract foreign investment
  • although economic output grew after 1924 it still did not reach pre-war levels
  • investment in new machinery and factories was falling by 1929
  • by 1925 there were 3000 cartel agreements (90% of Germany's coal and steel industry)
  • Cartels and tariffs reduced competition and propped up inefficient enterprises
• Advancements

  • Chemical industry
  • car and airplane industries
  • inflation rate was close to zero
  • in 1926 , 205,793 new homes built
  • number of strikes decreased due to system of compulsory arbitration
  • in 1927 wages increased by 9% and a further 12% in 1928
• 1928 Lock-outs

  Iron and steel 4 week lockout in Ruhr 1928

  Employers resented interference of government

  Workers received increase in wages
• Limits to economic recovery

  Stresemann - "The economic position is only flourishing on the surface. Germany is dancing on a volcano. If short-term loans are called in , a large section of our economy would collapse"
• Unemployment in Golden Age

  1925 - 1 million

  1926 - 3 million

  Mining companies reduced workforce by 136,000 between 1922 - 1925

  and a further 56,000 between 1925 - 1929

  The mittelstand and white collar workers also did not benefit during Golden Age
• Farmers

  Struggled to pay back loans due to increased taxes for welfare benefits - an unfair burden on farmers

  The government tried to help by :

  • introducing high import tariffs on food
  • import controls
  • subsidies for farmers
  • But this was not enough
• Farmer's Revenge

  Due to global grain surplus & price slumps in 1925 - 1926 there was an increase in bankruptcies where many farmers lost their land.

  In 1928 - There were a series of small scale riots called the Farmer's Revenge against foreclosure and low market prices.

  By 1929 German agricultural production was less than 3/4 of pre-war levels.
• Young Plan 1929

  • Germany to continue to pay reparations until 1988
  • required to pay £1.8 billion instead of original sum but annual payment increased
  • in return Britain and France agreed to withdraw all their troops from Rhineland by June 1930
• Freedom Law


  Young Plan inflamed nationalistic opinions in Germany

  • DNVP + NSDAP leaders Hugenberg + Hitler created a campaign called the Freedom Law
  • Demanded repudiation of war guilt clause in treaty
  • all ministers responsible for signing treaty with war guilt to be tried for treason
  • demanded immediate evacuation of all occupied territory
  • campaign signed by over 4 million so was put to a referendum
  • it was defeated but 13.8% of electorate voted for Freedom Law
  • showed depth of support for right-wing and was Hitler's decisive breakthrough as a national political figure
• Social Welfare Reform


  In 1926 the state was supporting :

  • 360,000 war widow
  • 800,000 disabled war veterans
  • 900,000 orphans

  Means tests delayed benefits and families felt humiliated
• 'New Woman'

  The new woman was portrayed as being free , independent , sexually liberated and increasingly visible in public life. A result of given :

  • equal voting rights
  • equal opportunities in civil service appointments
  • right to equal pay
• Civil Code 1896

  The husband had the right to decide on all matters concerning family life in marriage e.g employment

  Supported by League of German Women (BDF) - 900,000 members

  • promoted traditional family values
  • promoted maternal responsibilities
• Employment for women +

  • By 1925 - 36% of the German workforce were women
  • by 1933 there were 100,000 women teachers and 3000 women doctors
• Employment for women -

  • Pemobilisation laws - women had to leave their jobs so ex-soldiers could gain employment
  • payed much less than men
  • married women were required to give up employment and the ones who didn’t where attacked as ‘ double earners ’- blamed for male unemployment
• Sexual freedom for women +

  • birth control more available - increase in number of abortions - 1 million per year
  • birth rate decreased and divorce rates increased
• Sexual freedom for women -

  • 10-12,000 deaths per year from abortions - seen as criminal offence so performed by unqualified people
  • decrease in birth rate was seen as ‘ birth strike ‘ by conservative press and politicians
  • catholic and Protestant churches were vigorously opposed to birth control, divorce and abortion.
• Politics and public life for women +

  • Equal voting rights promised by Weimar Constitution - women became more active in local government
  • in 1919 - 41 women were elected in the Reichtag as deputies - higher proportion Of female deputies than British house of commons
• Politics and public life for women -

  • No female representation in reichstag / or cabinet / or as party leaders
  • only the KPD made gender equality apart of its programme. (Least appealing party to women voters)
• women politicians - Clara Zetkin .

  • member of KPD
  • leading campaigner for women’s rights
  • organised international women’s day 1911
• Women politicians- Marie Juchacz

  • First woman to make a speech in any legislative body in Germany
  • member of SPD - served as a Reichstag deputy until 1933
• women politicians- Marianna Weber

  • Wrote several books on feminist issues
  • active in German women’s suffrage before 1914
  • DDP member - first woman elected to state legislative in Baden
  • “it is our responsibility to infuse all life with our special mix of feminine and humane influence”
• women politicians- Paula Müller Otfried

  • Co-founder of German Protestant women’s league
  • was active in church and social work
  • member of DNVP - reichstag deputy 1920-1932 but opposed women’s suffrage