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| 1923, Jan. 11 |
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| OCCUPATION OF THE RUHR by French and Belgian forces, after Germany had been declared in default (See Jan. 11). The government suspended all deliveries to the Allies, but the Franco-Belgian commission arrested the recalcitrant mine owners and took over mines and railroads. The government supported the population in a policy of passive resistance by printing currency to aid striking miners and railroad workers. This resulted in massive inflation and fueled the collapse of the mark. The workers were hard hit because their wages, although steadily increased, did not keep up with rising prices. The middle classes, especially those relying on pensions, rents, or investment in government loans, were hardest hit. Their faith in the republic was severely undermined. | 1 |
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| Aug. 12 |
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| Gustav Stresemann, leader of the People's Party, formed a new government with the support of the Socialist, Center, and Democratic Parties. His goal was to end passive resistance, which he did on Sept. 16, and restore the economy. | 2 |
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| Oct. 21 |
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| A Rhineland Republic was proclaimed at Aachen, with Belgian and French support. The government was faced also with Communist troubles in Saxony and with monarchist plots in Bavaria. | 3 |
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| Nov. 8–11 |
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| “BEER HALL PUTSCH” in Munich, occasioned by the general crisis resulting from the Ruhr occupation and the financial collapse. General Erich Ludendorff and Adolf Hitler, leader of a growing National Socialist Party, attempted to overthrow the Bavarian government. The rising was poorly organized and was easily put down. Hitler was arrested and sentenced to five years in prison. While serving his term he wrote Mein Kampf, a book outlining his career, his theories, and his program. He was released after serving less than a year, and at once resumed his propaganda and organizing activity. | 4 |
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| Nov. 15 |
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| Opening of the Rentenbank. Hjalmar Schacht, appointed special currency commissioner, undertook the difficult task of substituting a new monetary unit for the worthless paper currency. The new Rentenmark, theoretically secured by a blanket mortgage on all land and industry to the amount of 3.2 billion gold marks, was exchangeable for 1 trillion of the old marks. Hans Luther, as minister of finance, tried by drastic economies, including the dismissal of more than 700,000 government employees, to balance the budget. But the Dawes Plan (See April 9) and the foreign loan that went with it were what really made it possible for Germany to emerge from bankruptcy. In the process most of the internal debt, public and private, was wiped out. The businessmen, who tended to dominate the various coalition governments, were, however, convinced that Germany, in need of raw materials, markets, and new capital, must remain on good terms with Britain, the United States, and possibly France. Hence the policy of fulfillment represented by Gustav Stresemann, who remained in every cabinet until his death in 1929. The policy made possible the flotation of large bond issues, largely in the United States, which helped pay reparations and brought on a fictitious prosperity. | 5 |
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