Problems in Germany after World War One

• The Treaty of Versailles had imposed very hard conditions on Germany after the War ended in late 1918

• Germany was forced to pay millions and millions of dollars in reparations (damages) to other countries

The War Guilt Clause• Article 231 of the Treaty (the

'war guilt' clause) held Germany solely responsible for all 'loss and damage' suffered by the Allies during the war and provided the basis for reparations.

• The total sum due was decided by an Inter-Allied Reparations Commission and was set at £6.6 Billion ($33 000 000 000). – This would have taken

Germany until 1984 to pay!

The League of Nations

Aims of the League:

1. Stop war and international aggression by discussing problems

2. Disarmament 3. Encourage cooperation

amongst nations4. Improve economic and

social conditions

Membership• 42 members originally• USA refused to join the League –

– Isolationism as evidenced by the Senate’s refusal to ratify the Treaty of Versailles

• Viewed as a “club for the victorious”– Defeated countries could not join

• Germany– Russia excluded because of Bolshevism

• 59 members by the 1930’s; – Bulgaria (1920), Austria (1920), Hungary (1922), Germany (1926), Mexico

(1931), Turkey (1932), and the USSR (1934)• Japan, Germany and USSR joined and then resigned when decisions were

against them – Japan for Invasion of Manchuria– Germany because of disagreement with the Arms Limitations Conference – Russia over the invasion of Finland

Powers of the League• SANCTIONS:

– Verbal Sanctions: Put international pressure on country

– Economic Sanctions: Refuse to trade

– Military Sanctions: Send in troops

• Members were not obligated to enforce sanctions

• Refer disputes to the World Court for resolution

• As the 1920’s moved on, it became clear that Germany could not afford to keep paying this money

• To try to fix the problem, the German

government decided to start printing more money to give to people

• The problem with this is that it starts to make the value of your currency decrease and the cost of products rise (called inflation)

• As Germany printed more and more of its currency (called the mark) the cost of products in Germany went through the roof

• In 1918 a loaf of bread cost Germans about 2 marks, that same loaf of bread in 1924 cost over 6 million marks

• People now were paid with shopping bags full of money and many workers demanded that they get paid every day because their money became worthless each day

• Some people had to carry a wheelbarrow for their money

• Food became scarce and many people had to get food from the forests outside the cities

• In the country side, many farmers had to get guns and even shoot people who tried to steal their food

• By 1932 the unemployment rate in Germany hit close to 50 percent and 6 million Germans did not have a job

• Politicians were not doing things to help the people, who could possibly take Germany out of this ruin?