Title 5. Reading - 1929-35 Depression; Rise of the Nazi Party

DescriptionKeywordsObjectivesAuthor M G CallagherOrganisationVersionDateCopyright

Focus Questions

1. What were the flow-on effects of the Wall Street sharemarket crash of 1929?

2. How did the Great Depression contribute to an upsurge in popularity and support for the Nazi Party?

3. How did Hitler and the Nazis convert electoral success into total control of Germany within two years?

The Great Depression

The Wall Street Crash brought the Roaring Twenties to an end and led to a Depression in America

The stock market crash in October 1929 signalled the beginning of the decade-long economic slump that would become known as the Great Depression.It marked the longest period of high unemployment and low production and trade in the 20th century. At its height, nearly a quarter of the USA workforce had lost their livelihood.The Depression spread to many European and World Economies.

<caption>A homeless family walking along a road during the Great Depression </caption>

Wall Street crash

Black Thursday or the Wall Street Crash refers to October 24, 1929, the day during which the stock market crashed, starting the Great Depression.

The crash followed a speculative boom which had taken hold in the late 1920’s, which had lead millions of Americans to invest heavily in the stock market.

This investment drove share prices up to artificially high levels

The rising share prices encouraged more people to invest, as they hoped the shares would rise further, thus fueling further rises, and creating an economic bubble.

The banks lent heavily to fund this share buying spree.

<caption>Crowds on Wall Street, 24th October 1929</caption>

Panic Selling

On the 24th October 1929, the bubble finally burst and panic selling set in.

13 million shares were sold in the space of one day, as people desperately tried to dispose of their shares before they became worthless.

Over the following few days another 30 million shares were sold, and share prices collapsed, ruining millions of investors.

<caption>Stock Market before and after Black Tuesday (29 October 1929)</caption>

Banks Collapse & American Unemployment

The banks who had lent heavily to fund share buying, found themselves saddled with debt.

This caused many banks to go bankrupt

which caused millions of people to lose their savings

and businesses to lose their credit lines, causing mass business failures

and massive unemployment.The crash dramatically worsened an already fragile economic situation, and was a major contributing factor to the Great Depression.

<caption>Unemployed worker in Detroit</caption>

Spreads to Europe

Foreign Loans RecalledEuropean Economies collapsed under the strain of the calling in of short-term war loans by the USATheir income, hence their ability to repay, had stopped

German reparations payments had stopped because loans to Germany from the USA had ceased

Income from exports to the USA had reduced dramatically

The German economic recovery ended The loans from the USA had been an important

element in the recoveryA number of large European banks collapsed

The USA recalled loans to foreign banks Many could not repay them Customers panicked and found they couldn’t withdraw

their moneyPeople had little or no money to spend

Businesses were forced to cut production Many firms had to close completely and lay off their

workers This leads to massive unemployment <caption>Unemployed men in a food line in

Paris.</caption>

Governments struggled to find solutionsRussia (USSR)

Russia had limited trade and dependence on other nations. The country was largely unaffected.

The Soviets claimed that a world Socialist revolution was at hand due to the seeming collapse of the Capitalist system.

France & Britain Were severely weakened economically. Both feared communist revolts. They were forced to cut back on government spending, including defence. This

meant that they were less prepared for war or to help each other.USA

Continued a policy of isolation to cut costs and commitments.Japan

Wanted to conscript unemployed into the army. They also wanted to conquer other countries to make them captive markets for

Japanese goods.Italy

Mussolini looked for nationalist distractions and blamed the communists for the mess.

Unemployment and GermanyThe depression caused unemployment, hunger and unhappiness throughout Europe, particularly in Germany.

Diagram of the Wall Street Crash and its impact on German Unemployment

Unemployment TablesUnemployment in Millions

German Unemployment

Rise of the Nazi Party 1920-1933

Over the 1920’s the Nazi Party remained a minor force in German Politics.However with the onset of the Great Depression an opportunity arose.Few would have thought that the Nazi Party, starting as a gang of unemployed soldiers in 1919, would become the legal government of Germany by 1933.

Background

1919 Hitler joins Munich based German Workers Party1920 The name of the party is changed to the National Socialist German Workers' Party, called for short, the Nazi Party (or NSDAP)1921 Hitler is appointed leader of the Nazi Party1923 Hitler attempted the unsuccessful Munich putsch (coup or takeover).1924 Hitler was sentenced to 5 years imprisonment.

He served only 9 months. During this time he wrote “Mein Kampf” (My Struggle)

<caption>Adolf Hitler</caption>

What is Nazism?GPW to NSDAP, 1920

Socialism and Communism had become very popular in the 1920’s however there was still a lot of suspicion of these ideas.

Hitler suggested renaming the German Workers Party (GPW) to the National Socialist German Workers Party (NSDAP) in 1920. This was because German Workers Party on its own sounded too much like a Communist Party.

By including the word “Socialism” the Party could remain popular with workers and by including the word “Nationalism” there could be an appeal to the broader and more right-wing people of Germany.

The NSDAP Party was later nicknamed “NAZI” Party.

So Nazism represented:A National form of SocialismAppealing to national unityA revolutionary dynamism under a charismatic leaderAdded to the ideas of:

racial superiority Territorial expansion Martial (militant) spirit which appealed

to the traditional German characteristic of discipline

<caption>Nazi Symbol</caption>

1924 to 1929

Hitler changes tactics

Hitler attempted to play down his extremist image, and claimed that he was no longer in favour of revolution but was willing to compete with other parties in democratic elections.

This policy was unsuccessful and in the elections of December 1924 the NSDAP could only win 14 seats compared with the 131 obtained by the Socialists (German Social Democrat Party) and the 45 of the German Communist Party (KPD).

In the 1928 German elections, less than 3% of the people voted for the Nazi Party which gave them only twelve seats. However, the party was well organized and membership had grown from 27,000 in 1925 to 108,000 in 1928.

In 1929 the Nazi Party was almost bankrupt due to its continued spending on extravagant rallies. A German businessman bailed them out.

In the late 1920s, Adolf Hitler reviews stormtroopers at a Nazi Party rally in Nuremberg, Germany.

The Storm-troopers

The Sturm Abteilung (Stormtroopers) was a paramilitary (non-government military) group sometimes referred to as the Brown-shirts because of the colour of their uniform.The Storm-troopers used murder and violence to help gain support for the Nazi Party.The Brown-shirts numbered close to 400,000 by 1932.

<caption>Hitler and the Brown shirts</caption>

Impact of Unemployment

“Only the Great Depression put the wind into Hitler’s sails”

The failure of several German Governments to cope with the massive and growing unemployment dramatically increased the popularity of the Nazi Party.Hitler also used propaganda to spread the Nazi message very effectively.The Nazi Party made extravagant promises of jobs and prosperity if they were in Government.

<caption>The Nazi vote rose alongside unemployment</caption>

Crisis in the Weimar Republic

July 1932 Election

The National Socialists (Nazi Party) were now the largest party in the Reichstag (Parliament). However no other party wanted to form a government with them.The other parties tried to form a government but failed. A new election was called.

November 1932 Election

The results for the November elections were similar.Even though the Nazi support had dropped from 230 to 196 seats, they still remained the biggest party in parliament.

<caption>German elections 31 July 1932 – Proportion of Votes Gained</caption>

<caption>Nazi Party Membership and Seats in the Reichstag</caption>

Hitler Appointed Chancellor

The figurehead President of Germany was Hindenburg, a much respected former General. He mistrusted Hitler and thought that he was a dangerous and annoying presence.In January 1933, President Hindenburg appointed Adolf Hitler as Chancellor even though Nazi Party support was actually in decline & unemployment was falling.

Other party leaders thought they could control Hitler They wanted to form a government Two elections in 1932 was enough for everybody They convinced Hindenburg to appoint Hitler

Chancellor

"I will employ my strength for the welfare of the German people, protect the Constitution and laws of the German people, conscientiously discharge the duties imposed on me, and conduct my affairs of office impartially and with justice to everyone." - the oath taken by Adolf Hitler.

So what Hitler had attempted to do by revolution he had now achieved by democracy. Hitler had never intended to gain power this way.

<caption>President Hindenburg</caption>

Hitler consolidates Political Power 1933-35

Hitler, once appointed Chancellor, had no intention of ever losing power or being constrained by other Parties in the Reichstag.He immediately set out to consolidate and strengthen his position.Within the space of two years, Adolf Hitler would go from Chancellor and Leader of a minority party in the Reichstag to the Supreme Leader and Dictator of an undemocratic Germany.

<caption>Paul Von Hindenburg calls Hitler to the chancellorship of Germany on January 30, 1933</caption>

Hitler calls election, March 1933

Hitler wanted a majority for the Nazi’s in the Reichstag. He immediately called new elections and used heavy propaganda.

Reichstag Burns Down

One week before the election was due to take place, the Reichstag building burned down. Hitler immediately declared that it was the signal for a communist takeover of the nation.Hitler knew that if he was to convince President Hindenburg to give him emergency powers - as stated in the Weimar Constitution - he had to play on the old president's fear of communism. What better than to convince him that the communists were about to take over the nation by force?

Emergency PowersHitler asked Hindenburg to grant him emergency powers in view of the 'communist takeover'. Using the constitution, Hindenburg agreed to pass the Law for the Protection of the People and the State.

<caption>The Reichstag on Fire</caption>

March Election Results

Ban on Communists and SocialistsThis law gave Hitler what he wanted - a ban on the Communists and Socialists taking part in an election campaign. The leaders from both parties were arrested and their newspapers were shut down. To 'keep the peace' and maintain law and order, the SA (the Brown Shirts) roamed the streets beating up those who openly opposed Hitler.Election ResultsThe election took place in March - though Hitler was convinced it would be the last. Hitler did not get the number of votes he wanted but he did get enough to get over a 50% majority in the Reichstag with the support of the Nationalists.That 12 million people voted for what were effectively two outlawed parties is remarkable when the intimidation of voters is taken into account.

One Party State

Enabling Act PassedOn March 23rd, elected officials were due to meet to discuss and vote on Hitler's Enabling Law. The vote for this law was crucial as it gave Hitler a vast amount of power. The law basically stated that any bill only needed Hitler's signature and within 24 hours that bill would become law in Germany. Hitler needed a two-thirds majority to pass the Enabling Act which he gained by persuading the Centre Party to vote with him. Nazi Storm-troopers had also blocked non-supportive Members of Parliament from entering the voting hall. The act gave Hitler what he wanted - dictatorial power.Opposition OutlawedOn 7th April 1933, Nazi officials were put in charge of all local government in the provinces.On May 2nd 1933, trades unions were abolished, their funds taken and their leaders put in prison. The workers were given a May Day holiday in return.

On July 14th 1933, a law was passed making it illegal to form a new political party. It also made the Nazi Party the only legal political party in Germany.Hitler had created a one party state within months of being appointed chancellor.

Hitler Eliminates Threats

For all the power the Enabling Act gave Hitler, he still felt threatened by some in the Nazi Party.He was also worried that the regular army had not given an oath of allegiance. Hitler knew that the army hierarchy held him in disdain as he was 'only ' a corporal in their eyes.The Night of the Long Knives not only removed the SA leaders but also got Hitler the army's oath that he so needed.

<caption>Corporal Adolf Hitler – World War One</caption>

Removing The SA as a threat

Two Million Storm-TroopersBy the summer of 1934, the SA's numbers had swollen to 2 million men. They were under the control of Ernst Röhm, a loyal follower of Hitler since the early days of the Nazi Party.The SA is past its usefulnessThe SA had given the Nazi's an iron fist with which to disrupt other political parties meetings before January 1933. The SA was also used to enforce law after Hitler became Chancellor in January 1933. To all intents, they were the enforcers of the Nazi Party and there is no evidence that Röhm was ever planning anything against Hitler.Plot against RöhmHowever, Röhm had made enemies within the Nazi Party - Himmler, Goering and Goebbels were angered by the power he had gained and convinced Hitler that this was a threat to his position.

<caption>Ernst Röhm, leader of the SA</caption>

Hitler Makes a Deal

By June 1934, the regular army hierarchy also saw the SA as a threat to their authority. The SA outnumbered the army by 1934 and Röhm had openly spoken about taking over the regular army by absorbing it into the SA. Such talk alarmed the army's leaders. 

By the summer of 1934, Hitler had decided that Röhm was a 'threat' and he made a pact with the army. If Röhm and the other SA leaders were removed, the rank and file SA men would come under the control of the army but the army would have to swear an oath of loyalty to Hitler. The army agreed and Röhm's fate was sealed.

Night of the Long Knives

Arrests & ExecutionsOn the night of June 29th - June 30th 1934, units of the SS (Hitler’s Special Police) arrested the leaders of the SA and other political opponents. The arrests carried on for 2 more nights.Seventy seven men were executed on charges of treason though historians tend to think the figure is higher. The SA was brought to heel and placed under the command of the army. Hitler received an oath of allegiance from all those who served in the army. Röhm was shot. Others were bludgeoned to death.Hitler before the ReichstagHitler told the Reichstag that for the duration of the arrests that he and he alone was the judge in Germany and that the SS carried out his orders. From that time on the SS became a feared force in Nazi Germany lead by Heinrich Himmler. The efficiency with which the SS had carried out its orders greatly impressed Hitler and Himmler was to acquire huge power within Nazi Germany.

<caption>Hitler explains the Night of the Long Knives to the Reichstag</caption>

The Army Oath of AllegianceEvery member of the Army and SA were forced to take an oath of allegiance to Adolf Hitler. An oath of allegiance is a significant step for any German soldier and one which they would be loath to break.

<caption>Soldiers take the oath of allegiance to Hitler – Note the names were recorded on the photo of those that refused to take the oath</caption> <caption>The SA salute with both hands</caption>

Der FuhrerPresident Hindenburg dies, 1935President Hindenburg died in 1935. He was a hero of the people who Hitler dared not challenge.Hitler becomes Der FuhrerHitler removed the office of President and combined it with that of Chancellor. Thus he became Der Fuhrer (The Leader)

Summary The economic hope and prosperity of the late 1920’s was interrupted by

the Wall Street Crash which led to a decade long depression, particularly in the USA.

The effect of the Great Depression was felt in Europe, particularly in countries that relied on the USA for loans and trade.

German unemployment surged which led directly to support for the National Socialists (Nazis).

Hitler was able to manipulate Hindenburg and the Reichstag once he was made Chancellor of Germany.

Hitler and his Nazis had eliminated democracy and replaced it with a one party state ruled by a dictator. They had complete control of all the mechanisms of Germany by 1935.