The Treaty of Versailles was signed on June 28, 1919. Its terms were quite humiliating for Germany. The country had to cede large parts of its territory and all of its colonies to the Allies. Its navy was reduced and its military aircraft prohibited. Additionally, Germany and its allies had to take full responsibility for the war and pay huge reparations.

The Weimar constitution came into force that same year. The first president of the Weimar Republic was Friedrich Ebert.The National Socialist Party was founded around this time. In 1922, Germany and the Soviet Union entered into diplomatic relations. Germany’s debts were cancelled under the Treaty of Rapallo.

Germany did not make good on its reparation payments to the other Allies, however. France and Belgium reacted by sending troops to the Ruhr district, a major industrial zone. The German government encouraged forms of passive resistance such as refusing to sell products to foreign soldiers. These measures proved effective for a term, but ultimately the outcome was hyperinflation. Many people in Ruhr went completely bankrupt, which spawned hatred of the democratic republic.

German chancellor Gustav Stresemann called an end to the resistance due to the deteriorating economy. His Cabinet introduced a new currency as a measure to combat inflation. The economy improved in the years that followed. By 1928, German industry had regained its pre-war levels.

An army of stormtroopers led by Adolf Hitler surrounded a beer hall in Munich on November 8, 1928. Hitler summoned his followers to march on to Berlin and seize power. This event is known as the Beer Hall Putsch. Later, he was arrested and sentenced to five years in prison, but was released less than a year later.

The Wall Street market crash, which resulted in the Great Depression, affected the economy worldwide. The effects were felt in Germany too. The Socialist party won the 1932 elections by a landslide. It became the biggest party in the country. Hitler was appointed chancellor on January 30, 1933.