By September 1919, the German High Command had realised that the war was lost, and established a more democratic government. This was done so that the Allies might be more lenient in forming a peace treaty, particularly as democracy was essential under US President Wilson 's Fourteen Points, and the Germans felt that a peace arranged by the US would be better for Germany than one arranged by one of the European powers. Prince Max of Baden was appointed Chancellor of the new government, and immediately sued for peace. When news of the request for an armistice reached the German military and public, there was mutiny, particularly
in Kiel and other northern German cities. The Kaiser lost control of the military and the Reichstag, and the Reichstag, and General Groener, who had taken over from Hindenburg, recommended that the Kaiser abdicate. He abdicated on 9 November, 1918, and this was followed by the resignation of Max of Baden. Baden appointed Frederick Ebert, leader of the Socialdemocratic Partei Deutschland (SPD) as Chancellor of the interim government, which would write the new constitution. Phillip Scheidemann, deputy leader of the SPD, proclaimed a democratic republic before the constitution had been finalised, much to the frustration of Ebert. The first elections were held on January 19, 1919, and the first sitting of the Reichstag took place on February 6, in Weimar, near Berlin. For this reason, the German Republic of 1919-1933 is often referred to as the Weimar Republic.
The End of the War and the Formation of the Treaty of Versailles
President Wilson notified the Germans on November 6, 1918, that the Allies were willing to grant an armistice. A group of Germans travelled to France, led by Matthias Erzberger, and met the Allies in Field Marshall Foch 's personal carriage. Germany was given 72 hours to sign the armistice, and despite some suggested alterations, they were forced to accept the terms of the Allies. The armistice was signed at 11 am on November 11, 1918.
Like the armistice, the Treaty of Versailles was made by the Allies (at the Paris Peace Conference), without a representative from Germany (except to sign it). As a result, the Treaty was very harsh on Germany. Its terms included:
The Germans army was reduced to 100 000
Germany was forbidden to manufacture heavy military equipment or chemical weapons
Germany was forbidden to develop an air force
The German navy was reduced to coastal patrol ships
Alsace and Lorraine were returned to France
The Saar Basin (a coal-producing area) was placed under international control for 15 years
The Rhineland was demilitarized
Germany lost all overseas colonies
Union between Germany and Austria was forbidden
Eastern German territories were lost to Poland
Germany was forced to accept guilt for the war
Germany was to pay reparations, set at 132 billion gold marks
Bibliography : http://historynerds.wikifoundry.com/page/Emergence+of+the+Democratic+Republic+and+the+Impact+of+the+Treaty+of+Versailles