1. Problems in Germany after World War One

2. 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

3. 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 ($ ).
This would have taken Germany until 1984 to pay!

4. The League of Nations

5. Aims of the League:
Stop war and international aggression by discussing problems
Disarmament
Encourage cooperation amongst nations
Improve economic and social conditions

6. 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

7. 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

8. 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)

9. 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

10. 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?