Weimar Republic
Germany Reparations
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Germany was assessed the equivalent of $33 billion by an Allied
commission in 1921
Germany made the initial payment, but asked for a three-moratorium the
next year.
France insisted German compliance and occupied the Ruhr Valley
German government ordered the people to passively resist by not working
in the coalmines and steel mills.
France retaliated by closing off the border to prevent the importation of
foodstuffs
German economy was paralyzed, and to pay its bills, the government
printed more and more money, leading to rapid inflation that wiped out the
savings of many middle class families.
Many Germans felt betrayed and vented their anger on the government,
big business, communists, and Jews.
In 1923, Hitler and a small band of anti-Semitic nationalist attempted a
coup.
Hitler wrote Mein Kampf and became nationally known while in prison for
treason.
Weimar Republic Stabilizes
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Germany stabilized when Stresemann ran the government
between 1923 and 1929
 He ended the passive resistance in the Ruhr and got the French
to agree to a renegotiations of the reparations.
A new currency was created which restored confidence
The U.S. helped with the Dawes Plan
Stresemann also ended tensions with his neighbors by signing the
Locarno Pact and joining the League of Nations.
Germany ended up paying off about a third of its reparations bill
by 1928
Politically, moderates like Stresemann dominated and the Weimar
Republic was gaining the support of the German people in the late
1920s
The Nazi Party was on the fringe, winning only 12 seats in the
1928 election
Nevertheless, Communists attacked the Social Democrats, who
were the largest party, and divided the working classes