To this day, historians debate the origin of the German banking crisis of 1931. Some blame bank failures in Hungary, while others attribute it to the high amount of foreign capital present in Germany’s banking sector, ready to be withdrawn at a moment’s notice. There are even those who attribute it to rumors that Germany would seek an end to reparations, creating a crisis of confidence in the banking sector. The causes are unclear, but the consequences were not. Only French loans, provided in return for political concessions, saved the German economy from collapsing…[1]
The French offers provoked a heated debate within Germany. While the DDVP and Social Democrats were willing to agree to French demands, the right called it a “second Versailles”, and the struggle took its toll on President Hindenburg.
July, 1931
Stresemann’s voice remained constant as he reiterated his demands to President Hindenburg. “Mr. President, we need that French loan.”
Hindenburg sat there for a moment, breathing listlessly. “Their demands,” he said after a moment. “Why should we obey them?”
Despite himself, Stresemann lost his temper. He was sick of coddling a man as fat and slow as a zeppelin who only listened to bitter junkers worried about their estates. “Because millions of Germans are out of work and on the streets, and listening to anyone who can promise them anything better. Because I took this office to help the people of Germany, not listen to the demands of arrogant generals. Because you have a duty to the German people to help them. And,” he continued, “If you don’t I will resign. I serve the Volk, not to the President.”
Hindenburg reeled as if from a blow. “It was easier to work with Müller. [2] He was polite, and he respected me.” Hindenburg shook his head. “But you’re just like the rest, always telling me what to do.”
Stresemann gulped, realizing he’d gone too far. “I only do so out of love for the Fatherland, the same as your son and comrades. But the fact remains that if we are to do anything, anything at all, then we need a semblance of stability.” He sighed. “We have Nazis shooting people in the streets, the Red Flag flying in Hamburg, and everywhere privation. If things get any worse,” he made a slicing gesture. “The only winners will be those who hate Germany.”
“That,” he continued,” is why we need to support disarmament. The Reich is strong, and will only get stronger. Yet before we can even think about avenging our defeats, we must put our own house in order.” Stresemann hesitated, and then plunged on. “Besides, the people do not want war.”
“Who does?” asked Hindenburg. “But we must be prepared.” He leaned back in his chair. “Why, I remember how we fought like devils at Tannenberg, the Marne, the Somme.” He smiled. “no enemy defeated us, you know. Not on the field of battle.”
“Oh, Christ,” Stresemann thought. “Here he goes again.” Aloud, he said, “That’s true, and your heroism was key to our victory. But even the soldiers of the war show no eagerness to fight another.” He gestured. “Look at the rallies attended by thousands in the cause of disarmament. Look at the way All Quiet on the Western Front flies off the book shelves even now.”
Hindenburg frowned. “I’ve heard of that book,” he said. “It’s full of lies.”
“Did you read it?”
“Why would I?” asked Hindenburg.
“Perhaps,” Stresemann said gently, “you might like a better understanding of what the war was like for the average soldier.”
Hindenburg scowled. “Are you saying I don’t understand?” he wheezed.
“If you don’t understand why people want peace, yes.” Stresemann frowned. He was being hostile today, but Hindenburg needed to hear something harsh. “I will make you a promise,” said Stresemann. “If you don’t understand the pacifists better after the book, I will oppose any talk of disarmament, or aid with France. I will listen to you, to your son, to junkers dedicated to abolishing the republic, to whomever you please.”
“Fine,” said Hindenburg. “I will read it.”
Stresemann was so pleased he didn’t even wrinkle his nose at the smell from Hindenburg’s bowel movement.
[/i]July, 1931[/i]
Hindenburg felt his bones creak as he stood up, wishing there was another way to get to Bavaria. But hunting would be an excellent break away from Berlin and politics. Smiling for a moment, he imagined shooting Thalmann instead of deer.
It was only when he got off the train that he noticed something was wrong. Instead of the silent crowds that usually came to pay their respects, there were men in brown standing around, and when they noticed him, they all cried out “Deutschland, erwache!”
Hindenburg scowled. Even here, it seemed, he would be harassed. “Go away,” he snarled. “Germany is governed by men and not thugs, and I have no time for you.”
August, 1931
The doors to Hindenburg’s study had been closed, and the women had left the room. As he lit a cigar, he turned towards Hugenberg, the leader of the DNVP. “You know, I’m worried about the Nazis.”
Hugenberg paused to take a puff on his cigar. “So am I.” He gestured around the room, encompassing books, a painting of Bismarck, and a window overlooking the estate’s grounds. “They have no understanding of such things.” He shrugged. “They are learning. Without me,” he continued, “they would actually be Socialists.” [3]
Hindenburg looked out the window, frowning. It seemed like night fell sooner than it had only a few years ago. “By refusing to collaborate with Stresemann, you’re making him rely on the Socialists.” He paused. “I’m not thrilled about it.”
Hugenberg hesitated for a moment. “To be honest, if we don’t harass Stresemann,” we’ll lose even more votes to the Nazis.” He chewed on the end of his cigar. “Cuban?” At Hindenburg’s nod, he continued. “Besides, what has Stresemann done? He’s too friendly with the French, if you ask me.”
Hindenburg’s voice took on a hard edge. “He’s too liberal for my taste,” he admitted, “but he is one of the finest men I have ever worked with, and his only goal is the salvation of Germany. Meanwhile, the men you consort with insult me in the newspaper, calling me senile and a Red puppet.”
Hugenberg spread his hands. “I wish I could help you. You know that I, personally, hold you in the greatest esteem.”
Hindenburg put down his cigar. “I wish I could say the same.”
September 1931
“Father, if you continue to allow these disarmament talks to go on then the junkers may withdraw their support.”
Hindenburg tried to explain it as best we could. “We need,” he said, “French gold. And peace.” [4] He could see the words that would convince his son in his mind, but for some reason he couldn’t say them.
“You would trust the French, after all they’ve done? You would abandon your friends and comrades?” When Hindenburg did not respond, his son said gently, “Perhaps it is best if I write letter for you, explaining your views.”
And all the hero of Tannenberg can do is bow his head in silence.
The following days lay hard on Hindenburg, as he is pulled three ways at once, and it is more than his fragile body can take, in the cold days of November.
Yet those who found his floor were comforted by his sedate state. He had fallen forward and lay on the floor as though sleeping. Those who found him saw that he could not have suffered long; his face had an expression of calm, as though almost glad the end had come.
[1] Stop building a pocket battleship, for instance.
[2] Muller, the Socialist Chancellor before Stresemann, was Hindenburg’s favorite Chancellor.
[3] Germany’s business leaders, and “conservative” right-wing nationalists believed they could tame the Nazis and use their mass support for their own ends.
Oops.
[4] There's rather more going on then Hindenburg is implying, but you'll see that soon.