The Downfall of Money: Germany’s Hyperinflation and the Destruction of the Middle Class

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The Downfall of Money: Germany’s Hyperinflation and the Destruction of the Middle Class Page 41

by Taylor, Frederick


  3 Downes, ibid., p. 186.

  4 Martin Gilbert, First World War, London, 1995, p. 256, cites the figures for 1915 and 1916, and on p. 256n the total for the entire war. As Prof. Gilbert points out, this was roughly equal to the numbers of German civilians killed by the Allied bombing offensive in the Second World War – a campaign undertaken for very similar reasons to the blockade thirty years earlier, and with an equally dubious justification so far as the accepted laws of war were concerned.

  5 Elizabeth H. Tobin, ‘War and the Working Class: The Case of Düsseldorf 1914-1918’, in Central European History, vol. 18, no. 3/4 (Sept.-Dec. 1985), p. 281.

  6 Ibid., p. 283.

  7 Ferguson, The Pity of War, p. 253.

  8 Ibid., p. 253f. And for the sales of foreign securities.

  9 See T. Balderston, ‘War Finance and Inflation in Britain and Germany, 1914-1918’, in The Economic History Review, New Series, vol. 42, no. 2 (May 1989), p. 240.

  10 Helfferich’s speech to the Reichstag on the Reich Budget, 20 August 1915, in Verhandlungen des Deutschen Reichstages, Stenographische Berichte XII. Legislaturperiode II. Sitzung Bd. 306, p. 224 (available online at http://www.reichstagsprotokolle.de).

  11 Gomes, German Reparations, p. 11.

  12 Ibid., p. 21.

  13 For the full text see Fritz Fischer, Germany’s Aims in the First World War, trans. Hajo Holborn, with an introduction by James Joll, New York, 1967, p. 105.

  14 See Gilbert, First World War, p. 155, for the plans of the group led by the chair of the supervisory board of Krupp and Pan-German extremist Alfred Hugenberg (1865-1951). Hugenberg was, as we shall see, later a major press and media magnate, one of Hitler’s chief helpers and in 1933 Economics Minister in the first Nazi-dominated cabinet.

  15 Quoted in ibid., p. 309.

  16 Gilbert, First World War, p. 398f.

  17 Gerald D. Feldman, Army, Industry and Labour in Germany 1914-1918, Providence, RI, and Oxford, 1992, p. 457f.

  18 See Strachan, The First World War, p. 281f.

  Chapter 3: From Triumph to Disaster

  1 Gilbert, First World War, p. 399.

  2 Quoted in chapter 18, Charles B. MacDonald, ‘World War One: The U.S. Army Overseas’ in American Military History, p. 392 (available online as http://www.history.army.mil/books/AMH/amh-toc.htm).

  3 Richard Bessel, Germany After the First World War, Oxford, 1993, p. 37.

  4 See Feldman, The Great Disorder, p. 58.

  5 See Feldman, Army, Industry and Labour, p. 459.

  6 Sebastian Haffner, Geschichte eines Deutschen: Die Erinnerungen 1914-1933, Stuttgart and Munich, 2000, p. 20.

  7 Gilbert, First World War, p. 407f.

  8 Feldman, Army, Industry and Labour, p. 493f.

  9 Strachan, The First World War, p. 289.

  10 Feldman, Army Industry and Labour, p. 493.

  11 See ibid., pp. 429ff.

  12 See Heinz Hagenlücke, Deutsche Vaterlandspartei: Die nationalen Rechte am Ende des Kaiserreiches, Düsseldorf, 1997, p. 353f.

  13 Figures for textiles and construction in Bessel, Germany After the First World War, p. 16.

  14 Reproduced from Ferguson, The Pity of War, p. 250.

  15 For the Hindenburg Programme see Bessel, Germany After the First World War, p. 13, and Feldman, Army, Industry and Labour, especially p. 154.

  16 For figures on tobacco and wine, beer and general agricultural decline, see Ferguson, The Pity of War, p. 251.

  17 Ibid., p. 254.

  18 For these figures see Feldman, Army, Industry and Labour, p. 472.

  19 Bessel, Germany After the First World War, p. 32, table 8.

  20 Ibid., p. 33.

  21 Ibid., p. 31.

  22 Feldman, Army, Industry and Labour, p. 464f. And for the quote below.

  23 Ibid., p. 506.

  24 Sönke Neitzel, Weltkrieg und Revolution, 1914-1918/19, Berlin, 2008, p. 148.

  25 Quoted in Otto Friedrich, Before the Deluge: A Portrait of Berlin in the Twenties, New York, 1995, p. 22.

  26 Haffner, Geschichte eines Deutschen, p. 31.

  27 Quoted in Hans-Ulrich Wehler, Deutsche Gesellschaftsgeschichte, Bd. 4: Vom Beginn des Ersten Weltkriegs bis zur Gründung der beiden deutschen Staaten 1914-1949, Munich, 2003, p. 193.

  28 Sebastian Haffner, Die deutsche Revolution 1918/19: Wie war es wirklich?, Munich, 1979, p. 83.

  29 See figures in Konrad Roessler, Die Finanzpolitik des Deutschen Reiches im Ersten Weltkrieg, Berlin, 1967, p. 79.

  Chapter 4: ‘I Hate the Social Revolution Like Sin’

  1 Haffner, Die deutsche Revolution 1918/19, p. 87.

  2 Ibid.

  3 Neitzel, Weltkrieg und Revolution, p. 153.

  4 Seaman Richard Stumpf’s comment on 4 November 1918 in Peter Englund, The Beauty and the Sorrow: An Intimate History of the First World War, London, 2011, p. 491.

  5 See an interview from 1958 with Karl Artelt, a torpedo technician and one of the leaders of the uprising, reproduced in http://www.kurkuhl.de/de/novrev/stadtrundgang_06.html.

  6 See http://www.kurkuhl.de/de/novrev/artelt_bericht.html

  7 Neitzel, Weltkrieg und Revolution, p. 156.

  8 Heinrich Winkler, Weimar 1918-1933, Munich, 1993, p. 32.

  9 Haffner, Die deutsche Revolution 1918/19, p. 70f. See also Winkler, Weimar 1918-1933, p. 29.

  10 Text in Philipp Scheidemann, Memoiren eines Sozialdemokraten (reprint Severus, 2010), Bd. 2, p. 245f. Translation by the author. There is disagreement about whether this version was a result of some later ‘tidying up’, but the sentiments are unarguable.

  11 See ibid., p. 246.

  12 Liebknecht’s proclamation at http://www.dhm.de/lemo/html/dokumente/liebknecht/index.html (in German).

  13 Friedrich, Before the Deluge, p. 25.

  14 LeMo Kollektives Gedächtnis, Aufzeichnung aus dem Tagebuch des jüdischen Fabrikanten Oskar Münsterberg (1865-1920) aus Berlin (DHM-Bestand), online at http://www.dhm.de/lemo/forum/kollektives_gedaechtnis/weimar.html.

  15 Riess’s account in Rudolf Pörtner (ed.), Alltag in der Weimarer Republik: Kindheit und Jugend in unruhiger Zeit, Munich, 1993, p. 31.

  16 Die Weltbühne Jahrgang XIV Nr. 51, 19 Dezember 1918, p. 591.

  Chapter 5: Salaries are Still Being Paid

  1 Trans. and ed. Charles Kessler, Diaries of a Cosmopolitan: Count Harry Kessler 1918-1937, London, 1971, p. 7f.

  2 See Winkler, Weimar 1918-1933, p. 38f.

  3 Ibid., p. 34.

  4 Article ‘Die Revolution in Berlin’ reproduced in Ernst Troeltsch, Die Fehlgeburt einer Republik: Spektator in Berlin 1918 bis 1922 (Zusammengestellt und mit einem Nachwort versehen von Johann Hinrich Claussen), Frankfurt-on-Main, 1944, p. 5.

  5 Ebert’s speech to the National Assembly in Weimar, 6 February 1919 in Verhandlungen der verfassungsgebenden Deutschen Nationalversammlung, Stenographische Berichte Bd. 326 pp. 2–3 (available online at http://www.reichstagsprotokolle.de).

  Chapter 6: Fourteen Points

  1 Text of Armistice reproduced in Manchester Guardian, 12 November 1918. Available online (slightly differing from the cited text) at http://www.firstworldwar.com/source/armisticeterms.htm.

  2 For the announcement of this false dawn see Manchester Guardian, 16 December 1918, p. 4.

  3 Feldman, The Great Disorder, p. 103.

  4 Ibid., pp. 99ff. for this and the following.

  5 Quoted in ibid., p. 101.

  6 ‘Mangin at Mainz: Plight of Returning Prisoners’, in Manchester Guardian,8 January 1919, p. 6.

  7 Quoted in Robert McCrum, ‘French Economic Policy at the Paris Peace Conference, 1919’, in The Historical Journal, vol. 21, no. 3 (Sept. 1978), p. 631.

  8 ‘Hungry German Cities: The Internal Blockade’, in Manchester Guardian, 22 January 1919, p. 6.

  9 ‘Wiesbaden Still a Luxury Town’, in Manchester Guardian, 28 January 1919, p. 4.

  10 Feldman, The Great Disorder, p. 101.

  11 Quoted in Monika Woitas, Annette Hartmann (eds), Stra
winskys, ‘Motor Drive’, Munich, 2009, p. 145.

  12 Ernst Engelbrecht and Leo Heller, Die Kinder der Nacht: Bilder aus dem Verbrecherleben, Berlin-Neu-Finkenkrug, 1925, chapter ‘Berliner Schwoof’, p. 140f.

  13 See Haffner, Geschichte eines Deutschen, p. 39f. and for a different point of view H. W. Koch, Der deutsche Bürgerkrieg: Eine Geschichte der deutschen und österreichischen Freikorps 1918-1923, Berlin and Frankfurt-on-Main, 1978, pp. 43ff.

  Chapter 7: Bloodhounds

  1 For the development of early ‘Free Corps’ units in the autumn of 1918 see Koch, Der deutsche Bürgerkrieg, p. 45f.

  2 Haffner, Die deutsche Revolution 1918/19, p. 134. Koch, Der deutsche Bürgerkrieg, p. 48, prefers the more nonchalant version of Ebert’s response.

  3 Winkler, Weimar 1918-1933, p. 54f.

  4 Kessler, Diaries of a Cosmopolitan, p. 51.

  5 Johannes Fischart, ‘Politiker und Publizisten XLII: Karl Liebknecht’, in Die Weltbühne Jahrgang XIV Nr. 51, 19 Dezember 1918, p. 573. Johannes Fischart was a pseudonym for the prolific journalist Erich Dombrowski (1889-1972).

  6 Winkler, Weimar 1918-1933, p. 50.

  7 For a particularly clear and concise account of the January uprising, see Hajo Holborn, Deutsche Geschichte in der Neuzeit: Das Zeitalter des Imperialismus (1871-1945), Munich, 1971, Bd. 3, pp. 309ff. Sequence of events here based on Holborn except where otherwise indicated.

  8 Kessler, Diaries of a Cosmopolitan, p. 55.

  9 See Haffner, Die deutsche Revolution 1918/19, p. 139, and Winkler, Weimar 1918-1933, p. 56f.

  10 Quoted in Haffner, Die deutsche Revolution 1918/19, p. 150.

  11 See ibid., p. 158.

  Chapter 8: Diktat

  1 Morgan Philips Price, Dispatches from the Weimar Republic: Versailles and German Fascism (ed. Tania Rose), London and Sterling, VA, 1999, p. 31.

  2 LeMo Kollektives Gedächtnis, ‘Revolution und Wahl 1918/19’, contribution from Henning Wenzel (b. 1910) at http://www.dhm.de/lemo/forum/kollektives_gedaechtnis/weimar.html

  3 See Rolf Hosfeld and Hermann Pölking, Wir Deutschen: 1918 bis 1929, Vom Kriegsende bis zu den goldenen Zwanzigern, Munich and Zürich, 2009, p. 67.

  4 Ibid., p. 49f.

  5 See Emil Julius Gumbel’s list of political murders in Germany between 1918 and 1922, published in 1922 as Vier Jahre politischer Mord and available online at http://www.deutsche-revolution.de/revolution-1918-102.html. Gumbel (1891-1966) was a Bavarian statistician and political writer, himself subjected to death threats and forced to emigrate after the Nazi seizure of power to the USA.

  6 From Josef Hofmiller, ‘Revolutionstagebuch’, in Josef Hofmillers Schriften, Bd. 2, p. 226, available through the Bayerische Staatsbibliothek digital collection at http://daten.digitale-sammlungen.de/~db/0001/bsb00016411/images/index.html?id=00016411&fip=193.174.98.30&no=&seite=226. The man’s name is misspelled as ‘Reichardt’ throughout, but has been corrected in the quoted text.

  7 Kessler, Diaries of a Cosmopolitan, p. 85.

  8 George Grosz, trans. Arnold J. Pomerans, A Small Yes and a Big No!, London and New York, 1982, p. 93.

  9 ‘Revolution und Inflation: Hermann Zander geb. 1897 erzählt’, at the website Kollektives Gedächtnis, http://www.kollektives-gedaechtnis.de/.

  10 Margaret MacMillan, Peacemakers: Six Months that Changed the World, London, 2002, p. 471. For the ‘life-raft’ observation and for the following quote from Ellis Dresel.

  11 See Marc Trachtenberg, ‘Versailles after Sixty Years’, in Journal of Contemporary History, vol. 17, no. 3 (July 1982) passim for the argument and p. 491 for the quotation.

  12 Ibid., p. 474.

  13 Ibid., pp. 474-6.

  14 David Lloyd George, The Truth about the Peace Treaties, London, 1938, vol. 1, p. 684.

  15 LeMo Kollektives Gedächtnis, Aufzeichnung aus dem Tagebuch des jüdischen Fabrikanten Oskar Münsterberg (1865-1920) aus Berlin (DHM-Bestand), online at http://www.dhm.de/lemo/forum/kollektives_gedaechtnis/weimar.html

  16 Text of Versailles Treaty available at http://avalon.law.yale.edu/imt/partviii.asp.

  17 Quoted in MacMillan, Peacemakers, p. 478.

  18 Ibid., p. 479.

  19 See Antony Lentin, ‘Treaty of Versailles: Was Germany Guilty?’, in History Today, vol. 62, issue 1, 2012.

  20 Hosfeld and Pölking, Wir Deutschen: 1918 bis 1929, p. 71.

  21 Quoted in H. A. Winkler, Der Lange Weg Nach Westen: Deutsche Geschichte vom Ende des Alten Reiches bis zum Untergang der Weimarer Republik, Munich, 2002, p. 399.

  22 MacMillan, Peacemakers, p. 480.

  23 Winkler, Weimar 1918-1933, p. 93.

  24 Ibid., p. 95.

  25 MacMillan, Peacemakers, pp. 484ff. And for the following.

  26 Quoted from article ‘Die Aufnahme der Friedensbedingungen’, in Troeltsch, Die Fehlgeburt einer Republik, p. 44.

  27 Kessler, Diaries of a Cosmopolitan, p. 103.

  28 Feldman, The Great Disorder, p. 160. And for the following quote.

  Chapter 9: social Peace at Any Price?

  1 Details of Stinnes’s biography available in an English translation of an article in the Neue Zürcher Zeitung, 22 November 1920, by Johannes Fischart (see n5, Chapter 7, for his comments about Liebknecht in Die Weltbühne), reproduced under the title ‘Hugo Stinnes: An Industrial Ludendorff’, in the American magazine The Living Age, 15 January 1921. Retrievable at http://www.unz.org/Pub/LivingAge-1921jan15-00148. Also for this quotation and following biographical details.

  2 See Feldman, The Great Disorder, p. 106f.

  3 Quoted in Bessel, Germany After the First World War, p. 143.

  4 See Winkler, Weimar 1918-1933, p. 45f.

  5 Feldman, The Great Disorder, p. 109, quoting Fritz Tänzler, Director of the Federation of German Employer Organisations (Vereinigung Deutscher Arbeitgeberverbände), addressing his colleagues on 18 December 1918.

  6 See Feldman, The Great Disorder, p. 107f for a summary of the discussion between Legien and Walther Rathenau of AEG, 11 November 1918, in which Rathenau, as an employer, questioned whether such an agreement was wise from the unions’ point of view.

  7 See Bessel, Germany After the First World War, pp. 144ff.

  8 Feldman, The Great Disorder, p. 119.

  9 Ibid., p. 117f.

  10 Ibid., p. 121.

  11 Text of Weimar Constitution available online (in German) at http://www.dhm.de/lemo/html/dokumente/verfassung/index.html. (Translation by the author.)

  12 Ibid., p. 127.

  13 Eric D. Weitz, Weimar Germany: Promise and Tragedy, Princeton, NJ, and Oxford, 2009, Paderborn, 1978, p. 21f.

  14 See F.-W. Henning, Das Industrialisierte Deutschland 1914 bis 1976, p. 54.

  15 Feldman, The Great Disorder, p. 129.

  16 See Karl Hardach, The Political Economy of Germany in the Twentieth Century, Ewing, NJ, 1981, p. 19.

  17 Quoted in Feldman, The Great Disorder, p. 131.

  18 Quoted in ibid., p. 160.

  19 Theo Balderston, Economics and Politics in the Weimar Republic, p. 25f.

  20 Ibid., p. 163.

  21 Quoted in ibid., p. 176.

  22 See Winkler, Weimar 1918-1933, p. 110.

  Chapter 10: Consequences

  1 See online entries in Deutsche Biographie at ‘Achterberg, Erich, Havenstein, Rudolf Emil Albert’, in Neue Deutsche Biographie, 8 (1969), S. 137 [Onlinefassung]; http://www.deutsche-biographie.de/pnd116550295.html (for Havenstein); and Götzky, Michael, ‘Glasenapp, Otto Georg Bogislav von’, in Neue Deutsche Biographie, 6 (1964), S. 428 [Onlinefassung]; http://www.deutsche-biographie.de/pnd116653124.html (for Glasenapp). Glasenapp’s translations were published in 1925, after his retirement from the Reichsbank.

  2 See Feldman, The Great Disorder, p. 203f.

  3 Dollar rates are hard to source for this period. January 1919 and May 1919 rates from Henning, Das Industrialisierte Deutschland, p.64; rates for July and September from the Vossische Zeitung, 18 July 1919, p. 13, and 7 September 1919, p. 13, respectively (exchange rates f
or returning prisoners of war). Scans of original editions of Vossische Zeitung (1918-34) available online at http://zefys.staatsbibliothek-berlin.de. Later the rates were published daily as part of the business section.

  4 For remarks on reasons for the mark’s decline see Henning, Das Industrialisierte Deutschland, p.64. Mark/dollar rate at end of 1919 from Vossische Zeitung online, 31 December 1919, late Edition, p. 4.

  5 Kessler, Diaries of a Cosmopolitan, p. 117.

  6 See Winkler, Weimar 1918-1933, pp. 87ff.

  7 Ibid., p. 95. And for the attitude of the DVP and DNVP.

  8 MacMillan, Peacemakers, p. 485.

  9 Die wirtschaftlichen Folgen des Friedensvertrages, Duncker & Humblot, Munich, 1920.

  10 Feldman, The Great Disorder, p. 206f.

  11 Ibid., pp. 204-7.

  12 Mark/dollar rates from Vossische Zeitung online: 25 January 1920, p. 14; 22 February 1920, p. 14; 7 March 1920, p. 14 (rates quoted as on the Cologne Currency Exchange).

  13 Feldman, The Great Disorder, p. 207.

  14 Winkler, Weimar 1918-1933, p. 117. And see Robert Leicht, ‘Patriot in der Gefahr’, in Die Zeit, 18 August 2011, Nr 3, available at http://www.zeit.de/2011/34/Erzberger/komplettansicht. For Hirschfeld’s sentence and parole see Burkhand Asrus Republik Ohne Chance? Akzeptanz und Legitimation der Weimarer Republik in der deutschen Tagespresse zwischen 1918 und 1923 (Beitrage Zur Kommunikationsgeschichte, Bd. 3), p. 341.

  Chapter 11: Putsch

  1 See Winkler, Weimar 1918-1933, p. 119; Hosfeld and Pölking, Wir Deutschen: 1918 bis 1929, p. 75f.

  2 See Hosfeld and Pölking, Wir Deutschen: 1918 bis 1929, p. 76f.

  3 Quoted in Hosfeld and Pölking, Wir Deutschen: 1918 bis 1929, p. 77f. And for Reinhardt’s response to Braun’s question.

  4 Winkler, Weimar 1918-1933, p.126. And for the fates of the rebels.

  5 Haffner, Geschichte eines Deutschen, p. 45f. And for the following quotes.

 

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