Brüning’s „tribute appeal“

On 6 June 1931 Reich Chancellor Heinrich Brüning (Centre) explains to the Reichstag that Germany’s financial capacity to meet its reparation payments has finally been exhausted because of the continuing world-wide economic crisis.

© hdbg The crisis is omnipresent: target "economic crisis" from 1931 with the themes unemployment, capital outflow and overburdening of the agriculture

But rather than providing for relief, Brüning’s „tribute appea“ aggravates the Reich’s financial crisis even more: From that point on, foreign investors and creditors in general have their doubts about the Reich’s liquidity. A new wave of capital flight sets in. Against the opposition of France – the largest reparations creditor – American president Herbert Hoover finally suggests postponing reparations for a year.