Molly Sanborn, Lekhoi Chau, and Ja’Mareia
Bonner
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France disagreed with Britain on how
Germany should be treated after World War I.
France wanted to weaken the German
economy through heavy reparations.
◦ France needed these reparations to pay back its
debt to the United States.
◦ 132 billion gold marks were to be paid to the Allied
powers.
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France was afraid for its security.
◦ The Anglo-American Guarantee was denied.
◦ It did not want to be susceptible to future German
attacks.
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Britain felt that Germany’s treatment at the
Paris Peace Conference was too harsh.
The reparations that Germany was being
forced to pay would cripple its economy.
Germany was the economic engine of Europe,
therefore a crippled Germany would result in
a weak European economy.
If the harsh treatment of Germany continued,
it might become closer to Russia.
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Germany missed a shipment of timber as part of
its reparation payments to France.
Despite British objections, France and Belgium
invaded the Ruhr on January 11, 1923.
◦ The goal was to collect the missed reparation payments
by force.
◦ Mines and factories were seized by French and Belgium
troops.
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German workers refused to co-operate with the
French troops. Instead, they revolted against
them.
◦ They destroyed mines, factories, and goods.
◦ Violence broke out between protestors and troops.
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The Weimar Government attempted to support its
workers.
◦ It printed more paper money, which depreciated its value.
◦ Everyday goods cost billions of marks.
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The middle class was hit the hardest.
◦ All of their savings were wiped out.
◦ They became cynical and pessimistic about the future.
◦ This led to susceptibility to extremists like Hitler.
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The Allies saw that the German economy and
government were close to completely collapsing.
◦ Collapsed Germany meant no reparation payments and a
failing European economy.
◦ Anarchy could ensue, which could lead to the embrace of
communism.
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During World War I, the exchange rate
between the German mark and the U.S. dollar
fell. By 1919, it was 47 marks to the dollar.
Reparation payments were to begin in June
1921.
◦ Payments were to be 2 billion gold marks, plus 26%
of German exports per year.
◦ This led to rapid devaluation of the German mark to
approximately 330 marks to the dollar by
November 1921.
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Germany began buying foreign currency,
which increased the devaluation of the mark.
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By December 1922 the value fell to 8,000
marks to the U.S. dollar.
French and Belgian troops invaded the Ruhr –
Germany’s industrial region – to collect
reparations in the form of goods.
◦ The mark was essentially worthless at this time, so
France was looking for another method of payment.
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The inflation was aggravated when the
Weimar government printed more paper
marks to support its passively resisting
workers.
A political cartoon showing
the overprinting of marks
during the Great Inflation.
A chart showing the
inflation of the
German mark from the
end of World War I to
1923.
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Gustav Stresemann was appointed as the
Chancellor of Germany in 1923.
He implemented the Policy of Fulfillment.
◦ His goal was for Germany to reclaim a respected place in
the world.
This policy supported German co-operation with
the Treaty of Versailles.
◦ The goal was to receive concessions in the future from
the Allies.
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Passive resistance was called off in the Ruhr.
This policy was meant to show the Allies that
Germany deserved a revision to the Treaty of
Versailles due to its good behavior and cooperation.
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The United States was the wealthiest nation in
the world during this time.
French and British debts to the U.S. were being
paid back through the collection of reparations
from Germany.
Charles Dawes developed a plan for economic
relief.
The Dawes plan rescheduled Germany’s
reparation payments.
◦ The deadlines were longer and the amount decreased.
◦ American capital went into German businesses and
government bonds.
A diagram depicting the
exchange of money in the
Dawes Plan.
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The initial meeting took place in Locarno, Italy in
September 1925. It was formally signed in
London in December 1925.
It involved Germany, Britain, France, Belgium, and
Italy.
Germany agreed to accept its borders with France
and Belgium as permanent.
◦ The borders were to be guaranteed by Britain and Italy.
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Germany was allowed to join the League of
Nations.
Germany’s eastern borders were not fixed.
◦ Britain would not guarantee these countries.
◦ Germany agreed to seek border changes with Poland and
Czechoslovakia through discussion instead of violence.
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This was a good opportunity for France and
Germany to reconcile.
Germany could now rebuild its economy.
◦ It was not a threat to European safety.
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Britain and France could repair their relations.
◦ Had drifted apart over the issue of the treatment of
Germany.
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The Locarno Treaty promoted optimism
throughout Europe.
It inspired a spirit of co-operation and peace.
A cartoon by David Low showing
Aristide Briand, Austin Chamberlain
and Gustav Stresemann signing the
Locarno Treaty (1925).
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Allied troops were removed from the Rhineland.
Allied supervision of German disarmament stopped in
1927.
Tensions between Germany and the Allies were on
the way to becoming resolved.
◦ Germany was treated more like an equal and less like a
criminal.
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This provided an opportunity for France to repair its
relationship with its former allies the United States
and Britain.
Germany had a more active role in European politics
through its membership in the League of Nations.
Peace in Europe seemed to be achievable.
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Under the Treaty of Rapallo, Germany was still
co-operating with the Soviet Union.
◦ This meant that Germany could avoid its disarmament.
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Germany’s eastern border with Czechoslovakia
and Poland had not been fixed under the Locarno
Treaty.
◦ Germany’s relationship with the Soviet Union was
dangerous because the Soviet Union wanted to redraw
the borders of Eastern Europe.
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The League of Nations and collective security
were not strengthened.
◦ In theory, peace could be achieved, but in reality it was
not likely.
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http://www.ibguides.com/history/notes/theruhr-crisis-1923-locarno-and-the-locarnospring
http://ibhistory.wikidot.com/the-ruhr-crisis1923-locarno-and-the-locarno-spring-1925
http://ibhistory2012.wikia.com/wiki/Locarno
_and_the_Locarno_Spring-_Artmis_Rahbar