The revolutionary meaning of the story reveals itself unmistakably at the end, with the disclosure of the psychiatrist as Caligari : reason overpowers unreasonable power, insane authority is symbolically abolished. Similar ideas were also being expressed on the contemporary stage, but the authors of CALIGARI transferred them to the screen without including any of those eulogies of the authority-freed “New Man” in which many expressionist plays indulged.
A miracle occurred: Erich Pommer, chief executive of Decla-Bioscop, accepted this unusual, if not subversive, script. Was it a miracle? Since in those early postwar days the conviction prevailed that foreign markets could only be conquered by artistic achievements, the German film industry was of course anxious to experiment in the field of aesthetically qualified entertainment. Art assured export, and export meant salvation. An ardent partisan of this doctrine, Pommer had moreover an incomparable flair for cinematic values and popular demands. Regardless of whether he grasped the significance of the strange story Mayer and Janowitz submitted to him, he certainly sensed its timely atmosphere and interesting scenic potentialities. He was a born promoter who handled screen and business affairs with equal facility, and, above all, excelled in stimulating the creative energies of directors and players.
In 1923, Ufa was to make him chief of its entire production. His behind-the-scenes activities were to leave their imprint on the pre-Hitler screen. Pommer assigned Fritz Lang to direct CALIGARI, but in the middle of the preliminary discussions Lang was ordered to finish his serial THE SPIDERS; the distributors of this film urged its completion. Lang’s successor was Dr. Robert Wiene.
Since his father, a  once-famous Dresden actor, had become slightly insane towards the end of his life, Wiene was not entirely unprepared to tackle the case of Dr. Caligari. He suggested, in complete harmony with what Lang had planned, an essential change of the original story — a change against which the two authors violently protested. But no one heeded them.
The original story was an account of real horrors; Wiene’s version transforms that account into a chimera concocted and narrated by the mentally deranged Francis. To effect this transformation the body of the original story is put into a framing story which introduces Francis as a madman. The film CALIGARI opens with the first of the two episodes composing the frame. Francis is shown sitting on a bench in the park of the lunatic asylum, listening to the confused babble of a fellow sufferer. Moving slowly, like an apparition, a female inmate of the asylum passes by: it is Jane. Francis says to his companion : “What I have experienced with her is still stranger than what you have encountered. I will tell it to you.” Fade-out.
Then a view of Holstenwall fades in, and the original story unfolds, ending, as has been seen, with the identification of Caligari. After a new fade-out the second and final episode of the framing story begins. Francis, having finished the narration, follows his companion back to the asylum, where he mingles with a crowd of sad figures — among them Cesare, who absent-mindedly caresses a little flower. The director of the asylum, a mild and understanding-looking person, joins the crowd. Lost in the maze of his hallucinations, Francis takes the director for the nightmarish character he himself has created, and accuses this imaginary fiend of being a dangerous madman. He screams, he fights the attendants in a frenzy. The scene is switched over to a sickroom, with the director putting on horn-rimmed spectacles which immediately change his appearance: it seems to be Caligari who examines the exhausted Francis. After this he removes his spectacles and, all mildness, tells his assistants that Francis believes him to be Caligari. Now that he understands the case of his patient, the director concludes, he will be able to heal him.