German reparations
World War I reparations were compensation imposed during the Paris Peace Conference upon the Central Powers (Germany, Austria-Hungary, the Ottoman Empire and Bulgaria) following their defeat in the First World War by the Allies. Each of the defeated powers was required to make payments in either cash or kind. Because of the financial situation Austria, Hungary, and Turkey found themselves in after the war, few to no reparations were paid and the requirements for reparations were cancelled. Bulgaria, having paid only a fraction of what was required, saw its reparation figure reduced and then cancelled. Many historians have recognised the German requirement to pay reparations as the main focus of the power struggle between France and Germany over whether the Versailles Treaty was to be enforced or revised.
Under the Treaty Germany was to pay reparations to the tune of 132 billion gold marks (US$33 billion) to cover civilian damage caused (to the Allied nations: mainly France, Britain and Italy) during the Great War. The new Weimar government of Germany really struggled to meet the excessive demands of reparations, but attempted to do so despite the domestic effects, such as unemployment, economic stagnation, poverty and hyperinflation. Social conditions felt by Germans were turning the public against the new democratic Weimar Government, and meeting the repayments became increasingly difficult to meet.
Under the Treaty Germany was to pay reparations to the tune of 132 billion gold marks (US$33 billion) to cover civilian damage caused (to the Allied nations: mainly France, Britain and Italy) during the Great War. The new Weimar government of Germany really struggled to meet the excessive demands of reparations, but attempted to do so despite the domestic effects, such as unemployment, economic stagnation, poverty and hyperinflation. Social conditions felt by Germans were turning the public against the new democratic Weimar Government, and meeting the repayments became increasingly difficult to meet.
Because of the lack of reparation payments by Germany during this period, France occupied the Ruhr district in 1923 to enforce payments, causing an international crisis that resulted in the implementation of the Dawes Plan in 1924. This plan outlined a new payment method and raised international loans to help Germany to meet her reparation commitments. Despite this, by 1928 Germany called for a new payment plan, resulting in the Young Plan that established the German reparation. requirements at 112 billion marks (US$26.3 billion) and created a schedule of payments that would see Germany complete payments by 1988. With the collapse of the German economy in 1931, reparations were suspended for a year and in 1932 during the Lausanne Conference they were cancelled altogether. Between 1919 and 1932, Germany paid less than 21 billion marks in reparations and it left a bitter taste in the mouth of most Germans that would lead to devasating effects in the immediate future following the Great Depression and the rise of the National Socialists (the Nazis).
QUESTIONS
1) Explain what the following terms mean: a) Allies b) Weimar government c) hyperinflation 2) Using [Source 2], explain how Europe had changed (which European territories were losy by): a) Germany b) Austria-Hungary c) The USSR (the former Russian Empire) 3) What were the main features of the reparations and what were the effects on the German economy and society? 4) Describe what you see in [Source 1]. What sort of message is the American cartoon attempting to communicate? |