Weimar Republic - Golden Era (1924–1929)

Golden Era (1924–1929)

Gustav Stresemann was Reichskanzler for 100 days in 1923, and served as foreign minister from 1923–1929, a period of relative stability for the Weimar Republic, known in Germany as Goldene Zwanziger ("Golden Twenties"). Prominent features of this period were a growing economy and a consequent decrease in civil unrest.

Once civil stability had been restored, Stresemann began stabilising the German currency, which promoted confidence in the German economy and helped the recovery that was so ardently needed for the German nation to keep up with their reparation repayments, while at the same time feeding and supplying the nation.

Once the economic situation had stabilised, Stresemann could begin putting a permanent currency in place, called the Rentenmark (1924), which again contributed to the growing level of international confidence in the German economy.

To help Germany meet reparation obligations, the Dawes Plan (1924) was created. This was an agreement between American banks and the German government in which the American banks lent money to German banks with German assets as collateral to help it pay reparations. The German railways, the National Bank and many industries were therefore mortgaged as securities for the stable currency and the loans. Shortly after, the French and Germans agreed that the borders between their countries would not be changed by force, which meant that the Treaty of Versailles was being diluted by the signing countries. Other foreign achievements were the evacuation of the Ruhr in 1925 and the 1925 Treaty of Berlin, which reinforced the Treaty of Rapallo in 1922 and improved relations between the Soviet Union and Germany. In 1926, Germany was admitted to the League of Nations as a permanent member, improving her international standing and giving her the ability to veto League of Nations legislation. However, this progress was funded by overseas loans, increasing the nation's debts, while overall trade increased and unemployment fell. Stresemann's reforms did not relieve the underlying weaknesses of Weimar but gave the appearance of a stable democracy. The major weakness in constitutional terms was the inherent instability of the coalitions. The growing dependence on American finance was to prove dangerous, and Germany was one of the worst hit nations in the Wall Street Crash of 1929.

The 1920s saw a remarkable cultural renaissance in Germany. During the worst phase of hyperinflation in 1923, the clubs and bars were full of speculators who spent their daily profits so they wouldn't lose the value the following day. Berlin intellectuals responded by condemning the excesses of capitalism, and demand revolutionary changes on the cultural scenery. Influenced by the brief cultural explosion in the Soviet Union, German literature, cinema, theatre and music worlds entered a phase of great creativity. Innovative street theatre brought plays to the public, the cabaret scene and jazz band became very popular. According to the cliché, modern young women were Americanised, wearing makeup, short hair, smoking and breaking with traditional mores. The euphoria surrounding Josephine Baker in the metropolis Berlin for instance, declared "erotic goddess" and in many ways admired and respected, kindled further "ultramodern" sensations in the minds of the German public. Art and a new type of architecture taught at "Bauhaus" schools reflected the new ideas of the time, with artists such as George Grosz being fined for defaming the military and for blasphemy.

Artists in Berlin were influenced by other contemporary progressive cultural movements, such as the Impressionist and Expressionist painters in Paris, as well as the Cubists. Likewise, American progressive architects were admired. Many of the new buildings built during this era followed a straight-lined, geometrical style. Examples of the new architecture include the Bauhaus Building by Gropius, Grosses Schauspielhaus, and the Einstein Tower.

Not everyone, however, was happy with the changes taking place in Weimar culture. Conservatives and reactionaries feared that Germany was betraying her traditional values by adopting popular styles from abroad, particularly the U.S. Hollywood popularised American film, while New York became the global capital of fashion. Germany was more susceptible to Americanisation, because of the close economic links brought about by the Dawes plan.

In 1929, three years after receiving the 1926 Nobel Peace Prize, Stresemann died of a heart attack at age 51. When stocks on the New York Stock Exchange crashed in October, the inevitable knock-on effects on the German economy brought the "Golden Twenties" to an abrupt end.