German Industry and Reparations

Abstract

The reparation problem, complicated as it was, was made even more so by the heightened role of industry in domestic politics, its attitude towards party government, and its intervention into areas of foreign policy. However, this development was not only the result of industrial pressure upon different German governments; rather politicians were only too willing to allow the participation of industrial and banking experts in the formulation of reparation initiatives. This development had of course started under the Scheidemann cabinet. Demobilization, food supply, the delivery of the merchant fleet, allied demands upon Germany, in short, the reconstruction of the peace economy necessitated a close cooperation between the ministerial bureaucracy, labor and industry. In the pursuit of a domestic and foreign peace policy, Weimar governments depended heavily upon the expertise of bankers and industrialists. On one hand, the fact that the representatives of special interests acted as governmental advisers, predetermined the search for feasible solutions; on the other hand, since the majority of the Reichstag supported or at least did not have the power or will to reject the influence of different interest groups upon governmental decision making, the search for German reparation programs remained a source of constant frustration for the Allies.