Bernd
07/09/2019 (Tue) 20:30:37
No.27928
del
Stresemann, a bourgeois optimist who had no active service in the war due to ill health, was not as apocalyptic as Hitler. He refused to accept the border with Poland and embraced dreadnought building, U-boat usage and territorial expansion, all views he never retracted, but believed a military solution was no longer possible to Germany’s issues. Instead, it could still be relevant in the sphere of economics.
His worldview encompassed not just great power competition but also the interconnectedness of the global economy, which meant Germany’s enemies still depended on it. America, in particular, could be turned into a counterweight against Britain (the opposite of Hitler’s belief) by giving it a stake in the German economy, and thus, an interest in its stability. This would pave the way for a negotiated removal of the winners’ burden and a return to the concert of nations.
It bears noting that this strategy is close to that followed by West Germany.
This was implemented in practice through a non-confrontational diplomacy with France, the sale of shares in German firms to Americans and the use of American credit to pay reparations to France and Britain.
Interwar Germany owed reparations to those two, who in turn owed war debts to America. German reparations to America didn’t matter much. Germany could pay reparations by running an export surplus (with unspent surplus staying at the Reichsbank’s foreign exchange reserves) or by borrowing. It chose the latter option, though it just meant replacing a debt towards France&Britain with a debt towards America.
This had the side advantage of guaranteeing a higher standard of living as the balance of trade wasn’t a concern. The Weimar Republic had a brief period of stability in 1924-1929, with the NSDAP receiving little of the vote in 1928. But its primary aim was to expand this American debt so much America would have to intervene to secure more lenient terms on reparations in order to let Germany pay the new debt.
It worked. The Dawes (1924) and Young (1929) Plans alleviated reparations demands and provided credit, the former also providing for an American middleman, the Reparations Agent, who, although damaging to national prestige, could halt payments if they destabilized the Mark and insulated the German government from external pressure on this matter.