The Weimar Assembly had outlived its usefulness. A new General Election was held on June 6 to choose the first Reichstag under the new constitution. While the Center parties still had a majority, it was greatly reduced, both the Right and Left gaining. The moderates were drifting to the two extremes. The Nationalist vote increased by three millions and the Minority Socialist vote by two and a half millions. This made more unstable than ever the authority of the Government, especially as the Allies at the Spa conference in July insisted upon the reduction of the German army to the treaty figure of one hundred thousand by January 1, 1921. In vain did the Germans plead that an army of one hundred thousand would make impossible the maintenance of authority and the insistence upon strict fulfilment of the treaty obligations. The Government pointed out that the only way to secure the arrest and trial of the “war criminals”—lists of whom, well up in the thousands, contained the most prominent names in the army and navy—would be for the Entente Powers to occupy militarily the whole of Germany and to take over the running of the country. For no German Government would have the means to obey this behest.

During the three weeks following the Spa Conference a tremendous effort was made to fulfil the disarmament clauses of the treaty, which it had been clearly shown at Spa had thus far been evaded. More than four thousand heavy guns and field-guns were destroyed, and a systematic effort was begun to disarm the civilian population. The deliveries of live stock to France and Belgium were made, and Germany began to attempt to meet the new schedule of coal deliveries, amounting to two million tons a month. The Supreme Court at Leipzig was entrusted with the trial of a few of the minor officers charged by the victors with violation of the laws of war. Some of these received prison sentences. The British representatives at the trials reported that they had been fairly conducted. The French, on the other hand, declared that the trials were a farce. Exasperated and despairing as they were over the failure to secure any modification of the Treaty of Versailles, the German people supported the Government in the efforts it made to comply with the orders of the Entente Powers. Food and raw materials the German people simply had to have to continue to exist. So a deaf ear was turned to the extreme Nationalists. The Germans were equally adverse to Bolshevism, whose horrors in Russia were described minutely in the press.

The year 1921, while not so perilous for the new Government from within, was marked by successive steps on the part of the Entente Powers that rendered still more difficult than before the return of Germany to economic health and political stability. On the last day of 1920 the French Government notified the German Government that the disarmament stipulation of the treaty had not been fulfilled, the principal complaint being that the Civic Guards (Einwohnerwehr) had not been disbanded in East Prussia and Bavaria. A few weeks later the Allies issued an ultimatum, fixing eight dates for the fulfilment of all disarmament demands, using the occupation of the Ruhr as a threat. The Disarmament Commission reported on June 30 that its work was over.

But the French Government declared that the surrender of existing war material and the disbanding of irregular organizations were only a part of the disarmament problem.[19] Measures had to be taken, by continuing the control, to prevent future infractions of the treaty, and it was also essential to supervise and limit the manufacture of anything in Germany that might conceivably be used for warlike purposes, such as chemicals, Diesel motors, and a host of other things. It was maintained that all factories should be dismantled that might be easily converted into war production. This, of course, was a question that never could be settled. If carried out to its logical conclusion, it would mean the stoppage of all large-scale industrial activities in Germany, and entail the emigration of from ten to twenty-five million Germans. At the same time that disarmament was introduced as a factor in industrial control, Germany was hit by two new and crushing blows: the loss of the industrial portion of Upper Silesia; and the fixing of the total indemnity at an amount which unbiased experts of all nations declared meant inevitable default, followed immediately by the collapse of the economic life of Central Europe.

During all the reparations discussion, Germany had always maintained that the retention of Upper Silesia was indispensible to the fulfilment of reparations obligations. But the plebiscite, as provided for in the treaty, was held on March 20, 1921. The result was an overwhelming victory for Germany, who received 717,122 votes against 483,514 for Poland. All the towns in the plebiscite territory and most of the villages gave German majorities. All the urban districts of the central industrial region—Beuthen, Hindenburg, Kattowitz, and Königshütte—returned German majorities. This was a tremendous surprise to the Poles, who with the aid of General Le Rond, head of the Interallied Commission, and the French army of occupation (my authority for this statement is the British commissioner and British and Italian officers), rose in insurrection under Korfanty. The Germans tried to defend themselves and began to introduce volunteers in arms from the outside, as the Poles were doing. But the French Government demanded at Berlin the immediate prohibition of recruiting for the defense of Upper Silesia. No similar demand was made at Warsaw.

The Allies could come to no agreement in regard to the disposition of Upper Silesia. The question was turned over to the League of Nations, which awarded the most valuable industrial part of the territory to Poland.[20] This was the most severe blow Germany had received since signing the fateful armistice that ended the World War. It marked the end of the hope of Germany getting on her feet and resuming her place in the family of nations by the payment of adequate reparations. But the blow to Germany was not as great as that to Upper Silesia, which was artificially divided, leaving large industrial German towns in the inexperienced hands of Poland, against whom they had voted. A new irredentist question was born.

The German cabinet resigned, but Herr Wirth consented to head a new ministry. He made clear, however, his attitude and that of his colleagues in regard to Upper Silesia in the following declaration:

The German Government sees in the territorial and economic dictates of the Entente not only an injustice which the German people has no power to oppose, but also an infringement of the Treaty of Versailles, an upsetting of the decision arrived at in Geneva and accepted by the chief Allied Powers. Against this injustice with the situation which it creates the German Government makes the solemn protest in the name of international law, the shield of the oppressed. It is only on account of the threats expressed in the note, and the desire to avoid as far as possible the misery which would otherwise light upon the Upper Silesian industrial district that the German Government consents to nominate the delegates [for arranging the partition with the Poles] as required by the dictate of the Powers, without thereby abandoning its previous standpoint.

The “economic dictates” were no less disastrous than the territorial ones of 1921. At the end of January a conference at Paris formulated a plan by which Germany was to pay 226 billion gold marks in forty-two fixed annuities from May 1, 1921, to May 1, 1963, and in addition forty-two varying annuities each equal to 12 per cent of German exports. This demand was communicated to Germany, with the threat that non-acceptance would involve the occupation of the Ruhr. The foreign minister, Herr Simons, told the Reichstag that these demands were impossible of fulfilment, infringed the Treaty of Versailles, foreshadowed the dismemberment of Germany, and meant the economic enslavement of the German people. Germany refused to entertain them. Seeing that economists the world over, in France as well as in other countries, regarded the proposal as absurd, the German refusal was not answered by military steps, but a new conference was called in London, at which the Germans were to be allowed to submit counter-proposals. These were unsatisfactory, and the occupation of Duisburg, Ruhrort, and Düsseldorf by French, British, and Belgian troops followed. Germany protested to the League of Nations, but without effect.

Appeals were made for intervention at Washington and the Vatican, but they were received coldly. The American Government pointed out that Germany should “at once make directly to the Allied Governments clear, definite, and adequate proposals which would in all respects meet its just obligations.” There is no doubt that Germany at this juncture ought to have recognized the inevitability of making supreme sacrifices in order to live up to her obligations. Whether the effort to do this was possible under existing conditions was another matter. The cabinet evidently thought that there was nothing to be done, and presented to President Ebert its resignation. In the meantime the Reparations Commission had fixed the indemnity at 132 billion gold marks, this sum coming due, as provided for in the treaty, on May 1, 1921; and a further sum of twelve billion gold marks was demanded for the reconstruction of demolished industrial works. As a guarantee, the German Government was to send immediately into occupied territory the gold reserve of the Reichsbank and other banking-houses.