2.4 1923: The Weimar Republic
in Trouble
Reparations
Germany ordered to pay reparations
o In 1921, it was decided that 6.6 billion should be paid in yearly
installments for 66 years
German government managed to pay first installation
Most of the reparations were in goods (coal, iron, steel etc.)
Germany Fails to Pay
In 1922, Germany stated they could not pay the next installment
o The French and Belgians did not believe them and took goods
by force.
Jan 1923 – 60,000 French and Belgian troops invaded
the Ruhr (a rich, industrial area)
Troops overran factories, mines etc. and arrested German resistance
Cause of Hyperinflation (in Chronological
Order)
1. French and Belgian troops start taking goods from the Ruhr
2. German government orders workers to go on strike and offer
passive resistance
3. French and Belgian troops killed 100 workers on strike and threw
15,000 out of their homes
4. The government continued paying the strikes but they were running
out of money as they did not have the goods to trade from the Ruhr
5. The government started printing money to pay the workers
6. The workers started spending their money quickly, so shopkeepers
raised their prices
7. As prices went up, the government printed more money to give to
the workers
8. Started a viscous cycle, the more the workers got paid, the higher
the shop prices. Prices started to change from the back of the queue
when you reached the front. People used wheelbarrows to carry
their money
Passive Resistance – the act of protesting against government or laws
by using non-violent acts
in Trouble
Reparations
Germany ordered to pay reparations
o In 1921, it was decided that 6.6 billion should be paid in yearly
installments for 66 years
German government managed to pay first installation
Most of the reparations were in goods (coal, iron, steel etc.)
Germany Fails to Pay
In 1922, Germany stated they could not pay the next installment
o The French and Belgians did not believe them and took goods
by force.
Jan 1923 – 60,000 French and Belgian troops invaded
the Ruhr (a rich, industrial area)
Troops overran factories, mines etc. and arrested German resistance
Cause of Hyperinflation (in Chronological
Order)
1. French and Belgian troops start taking goods from the Ruhr
2. German government orders workers to go on strike and offer
passive resistance
3. French and Belgian troops killed 100 workers on strike and threw
15,000 out of their homes
4. The government continued paying the strikes but they were running
out of money as they did not have the goods to trade from the Ruhr
5. The government started printing money to pay the workers
6. The workers started spending their money quickly, so shopkeepers
raised their prices
7. As prices went up, the government printed more money to give to
the workers
8. Started a viscous cycle, the more the workers got paid, the higher
the shop prices. Prices started to change from the back of the queue
when you reached the front. People used wheelbarrows to carry
their money
Passive Resistance – the act of protesting against government or laws
by using non-violent acts
