19th Century Germany

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In 1919, Germany was still a young country by European standards, united just less than fifty years earlier. At the beginning of the nineteenth century, there were over three hundred Germanic kingdoms in what is today Germany. The kingdoms existed, traded, fought wars with and against one another for over a millennium. Napoleon Bonaparte, during his conquest through Europe reduced the number to a German Confederation of thirty-nine states. Otto von Bismarck united all the German Confederation under Prussian domination through a series of wars. Unification made Germany the most dominant country in Europe and instilled a sense of German unity and pride. As united as the Germans were, the country had a very rich and diverse culture. A culture …show more content…

Many socialist programs began with the rise of the republic. The government took up a position of passive resistance against the occupation of the Ruhr industrial region. Workers in the region went on strike to protest the occupation, and in an effort to pay the reparation debt and the workers, the treasury printed money without financial backing. This irresponsible printing of money caused hyperinflation; a single US dollar bought 4.2 trillion marks, whereas in 1922, a single US dollar bought 3,180 marks. Germans carried suitcases full of money just to buy a pair of shoes or a loaf of bread. Chancellor Gustav Stresemann stopped the craziness by halting the printing of Marks and introduced new, stable Reichsmarks that had gold backing. The old currency was exchanged for the new stable currency and it had an immediate effect. Prices stabilized, and inflation stopped. Stresemann also negotiated a reconciliation with France and for the end of the occupation of the Ruhr in return for a promise of scheduled reparations payments. Stresemann, along with Charles Dawes, an American banker, revised the reparations payments and schedule to a manageable level. The Dawes Plan, backed by American financing, was approved by the Reichstag in August 1924. American dollars began to flow into Germany, ensuring industrial trade between the two countries. The striking workers returned to their jobs, and the German economy started to gain strength. Both Dawes and Stresemann received the Nobel Prize for

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