1. GLOBAL DEPRESSION 1919-1939

2. Turmoil of Versailles Border disputes in Eastern Europe cause resentment. U.S. does not ratify T.of V. and is not part of the League of Nations The League is powerless to intervene in international disputes

3. Turmoil… High inflation and unemployment – factories and banks close Mark becomes worthless – by Nov. 1923 4.2 TRILLION Marks = $1.00 U.S. Germany unable to pay reparations – 30% of work force unemployed (6 mil.) France occupies the German Ruhr Valley – collect payment by using factories & mines

4. The Worthless German Mark Weimer Republic 1923

5. The Dawes Plan 1924 An International commission produces a new plan for reparations. Reduced reparations & coordinated Germany’s annual payments U.S. loans $200 mil. for German recovery Opens door to heavy American investments in Europe

8. Charles Dawes Chairman of Commission

9. The Treaty of Lacarno “Peace” between Germany & France – guaranteed Germany’s western borders 1926 Germany joins League of Nations 1928 The Kellogg-Briand Pact – 63 nations sign an accord to “renounce war as an instrument of national policy” (no consequence for violating pact).

10. Aristide Briand (Fr.) Austin Chamberlain (G.B.) & Gustav Stressmann (Germ) The Treaty of Lacarno

11. Stock Market Crash 1929 Mid 1920’s – prices fall because of overproduction (i.e. - wheat) International financial crisis: The U.S. loaned money to Germany to pay reparations to G.B. & France opening the door for American investors Investors begin to pull money out of Europe to play in the booming U.S. stock market October 1929 – U.S. Stock Market Crashes Investors pull more money out of Europe – European banks crash

13. The Great Depression U.S. Pres. Franklin Roosevelt (FDR) signs the “New Deal” – Active government intervention creating a Public works (CREATES JOBS) program – Roads, Dams, Bridges, Flood Control (Tennessee Valley Authority) Social legislation – begins social welfare 1935 – Social Security Act – old age pension & unemployment insurance

15. European Depression Millions out of work (G.B. – 25%, Germany – 40%) In response governments take a stronger role in regulating economies Marxism/Communism become more popular Masses turn to political leaders who promise simple solutions in exchange for dictatorial power

16. Fascism Emphasizes Loyalty & Obedience Punish those responsible Struggle or be doomed Propaganda & censorship Mass rallies Promises to save economy Restore national pride Uniforms, salutes, symbols Loose individuality for state