1. The Ruhr Crisis
IB 20th Century Topics

2. Causes The French Fear of Security US and British Isolation
Growing sympathy for Germany in Britain

3. Causes Reparations 132 Billion Gold Marks (33 Billion dollars est.)
French wanted them paid
Owed money to the US
Wanted revenge on Germany
Britain was ambivalent to reparations
Needed to pay the US too, but didn’t want to collapse Germany
Fear of German isolation

4. Some Background on the Ruhr
The Ruhr Valley was the Industrial Center of Germany
Coal and Steel Production
Lumber

5. The Trigger Germany fails to deliver lumber
France declares Germany in default of reparation payments
January 11, 1923: Belgian and French Troops invade the Ruhr
German workers went on strike

6. 1923 French Soldiers in the Ruhr Area

7. Results
In retaliation, Germany orders a strike and prints money to pay the strikers (goes into hyperinflation) In economics, hyperinflation is inflation that is very high or "out of control".
Fear Germany would become communist
Middle Class in Germany wiped out
The whole incident was humiliating and causes Germans to lose faith in their government

8. German Hyperinflation
In economics, hyperinflation is inflation that is very high or "out of control".
Germany went through its worst inflation in In 1922, the highest denomination was 50,000 Mark.
By 1923, the highest denomination was 100,000,000,000,000 Mark.
In December 1923 the exchange rate was 4,200,000,000,000 Marks to 1 US dollar.

9. French troops occupying the Ruhr Valley
French troops occupying the Ruhr Valley. Rough treatment of Germans by black colonial French troops led to German resentment and humiliation
Ruhr Valley

10. The Dawes Plan (1924) Causes 1. The Ruhr Crisis & Hyper Inflation
The Plan
1. Made loans available to Germany
2. Froze payments for two years
3. Lowered payments
Result
1. Persuades France to withdraw troops
2. Germany could make payments
3. Germany adopts the policy of fulfillment