The Kapp Putsch
When the government tried to carry out the terms of Versailles, it
alienated the Right.
It would be those individuals that attempted to topple the government in
March 1920.
The origins were traced to the effort to limit the army to 100,000 men,
including the Free Corps.
The Putsch had it’s origins when the government attempted to comply.
The Free Corps was very resentful, especially after battling the
Spartacists and Poles.
The Start of the Kapp Putsch
When orders came for the Ehrhardt and Baltikum Bdes to demobilize, Gen.
Walther Luttwitz defied the government.
He ordered the Ehrhardt and Baltikum Bdes to move on Berlin.
On March 13, the troops marched into Berlin.
They were meet by Luttwitz, Ludendorff, and a Prussian politician, Dr.
Wolfgang Kapp.
Noske and other Socialist politicians want to resist militarily, but von
Seeckt said, "Reichswehr does not fire on Reichswehr."
The Government Response
The Government and Trade Unions called for a general strike.
The general strike paralyzed the Kapp government.
By March 17, Luttwitz and Kapp fled Berlin.
The Ehrhardt left Berlin too, after firing into the crowd.
The general strike gave new hope to the communists, who started
insurrections in Berlin and Munster.
As well as in the Ruhr with a "Red Army" of 50,000.
The Issue of Inflation
The issue reparations would cause additional problems.
The new German government led by Joseph Wirth announced they they would
follow a policy of "fulfillment" when it came to reparations.
But they lacked the courage to raise the sums necessary.
The government realized that all Germans would have opposed that course of
action.
Since it would led to a reduction of the social services that Germans
expected.
The Start of the Inflation
The government decided to borrow and print more money.
Foreigner investors lost confidence in Germany.
The value of the Mark collapsed from 4.2 to the dollar in 1914, 8.9 to the
dollar in 1919.
The situation was exacerbated when the French occupied the Ruhr in Jan.
1923 because Berlin could not meet their reparation payments.
The Germans responded by Passive Resistance to the French.
Financing Passive Resistance
Passive resistance was expensive.
So Berlin printed more money.
They used 133 printing offices and 1783 printing presses to print the
money.
Now the mark stood at 25 billion to the dollar.
The people who were hurt were those who had money in savings accounts.
Those Who Profited from the Hyper Inflation
Speculators made a fortune.
Some knew how to invest and purchase companies with depreciated currency.
Those who had fortunes in stable currencies and able to establish
subsidiaries abroad could make killings.
Many German industrial magnates were unhappy with the ending of passive
resistance.
Not because they were so patriotic, but because they were making unheard of
fortunes.
Who was Hurt by the Inflation?
Hitler decided to rally Munich to his cause.
The next morning, Nov. 9, 1923, the Storm Troopers led by Hitler and
Ludendorff march from the Burgerbraukeller.
The Police and Reichswehr troops and the police fired.
Fourteen Storm troopers were killed & Hitler was captured