In the early 1920s, the Ruhr Valley, a coal and industrial hub in Germany, was occupied by French and Belgian troops as a response to Germany's failure to meet reparations obligations from World War I. This occupation sparked widespread unrest and led to the German government advocating for a policy of passive resistance, which included strikes and acts of non-compliance. Many Germans saw this as a patriotic duty to resist foreign control, while the government faced mounting economic pressures as this resistance crippled industrial output and heightened inflation. By September 1923, the economic consequences became increasingly severe, leading to shortages of goods and rising social discontent among the German populace.

Amidst this turmoil, German Chancellor Gustav Stresemann and his administration made the difficult decision to end the passive resistance. They recognized that continued defiance was unsustainable; the economic costs were too high, and the international community was unsympathetic to the plight of Germany. The government feared that prolonged resistance would lead to further devastation of the economy and the possibility of a greater political crisis within the country. Consequently, diplomatic approaches began to take precedence over resistance tactics, with hopes of negotiating a more favorable settlement with foreign powers.