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Germany2: Empire to Democracy 1914-1929 > Ruhr and Hyperinflation > Flashcards

Ruhr and Hyperinflation Flashcards

(53 cards)

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1
Q

What is Passive resistance?

A

non violent opposition to authority, ie refusal to cooperate with laws

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2
Q

What is Hyperinflation?

A

very rapid and unstable increase in general price of goods and services

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3
Q

What passive resistance occurred in the Ruhr?

A

German government tells workers in Ruhr to go on strike- passive resistance, refuse to cooperate with French coming in

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4
Q

What impact does passive resistance in the Ruhr have?

A

pay their workers to strike, further reducing the value of the Mark
- Bring in their own workers to take the Ruhr materials
- People die due to attacks between French and German workers

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5
Q

How much was the Reparations payments and how did the other countries feel about it?

A

Reparations in 1921- set at £6.6 billion
Lack of sympathy for German debts etc, Britain + France want their Reparations

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6
Q

What was the Ruhr Crisis?

A

Jan 2023: result of Germany defaulting on reparations payments a French and Belgian force of 60,000 men entered the force

Weimar government ordered the public to follow passive resistance- refusing to work, striking etc

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7
Q

How did French and Belgium authorities respond to the Ruhr crisis?

A

French and Belgian authorities responded by arresting mine workers and taking over mines and railways
Loss of income from the Ruhr (taxes, coal etc) leads to the government printing even more money to compensate

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8
Q

What happened on the 28 June 1919 that impacted the Ruhr Crisis?

A

Germany signs Treaty of Versailles, accepts in principle to pay reparations, largely to offset inter-Allied war debts

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9
Q

What happened on the 8 March 1921 that impacted the Ruhr Crisis?

A

French and Belgian troops occupy western fringe of Ruhr district as reparation talks stall

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10
Q

What happened on the 10 May 1921 that impacted the Ruhr Crisis?

A

Reichstag accept reparations bill of 132 billion gold marks, but Germany soon experiences difficulties in meeting payment schedule

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11
Q

What happened between April and August 1922 that impacted the Ruhr Crisis?

A

series of international conferences fail to resolve problems of reparations and inter-Allies war debts

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12
Q

What happened on the 16 August 1922 that impacted the Ruhr Crisis?

A

France decides in principle to occupy the Ruhr to exact reparations on their own terms

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13
Q

What happened on the 26 December 1922 that impacted the Ruhr Crisis?

A

Reparations Commission declares Germany in default of timber deliveries

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14
Q

What happened on the 3 Jan 1923 that impacted the Ruhr Crisis?

A

French War Ministry issues final orders on Invasion of the Ruhr

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15
Q

What happened on the 11 Jan 1923 that impacted the Ruhr Crisis?

A

French and Belgium troops march into the Ruhr District

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16
Q

What happened on the 13 Jan 1923 that impacted the Ruhr Crisis?

A

Reichstag resolves to offer passive resistance to occupation

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17
Q

What happened on the 14 Jan 1923 that impacted the Ruhr Crisis?

A

Berlin bans all coal and coke deliveries to France and Belgium

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18
Q

What happened on the 16 Jan 1923 that impacted the Ruhr Crisis?

A

Passive resistance is extended to the railways and canals. Freight deliveries to France and Belgium cease within days

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19
Q

What happened on the 24 Jan 1923 that impacted the Ruhr Crisis?

A

Leading Ruhr industrialists face court martial and are fined for refusing to deliver reparations coal. Protest strikes sweep the Ruhr

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20
Q

What happened on the 26 Sep 1923 that impacted the Ruhr Crisis?

A

Germany abandons passive resistance after 9 months during which the Ruhr’s population has suffered appalling hardship and German currency has collapsed. Workers riot and strike in protest, but France imposes her will

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21
Q

What happened on the 30 Aug 1924 that impacted the Ruhr Crisis?

A

France accepts Dawes Plan, brokered by USA and Britain, which provides a basis for reduced reparation payments and evacuation of the Ruhr

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22
Q

What happened on the 25 Aug 1925 that impacted the Ruhr Crisis?

Study These Flashcards
A

The last French soldiers leave the Ruhr

23
Q

What happened in 1918 that led Germany towards economic crisis?

Study These Flashcards
A

Germany ends WW1 with severe economic problems

24
Q

What happened in 1919 that led Germany towards economic crisis?

Study These Flashcards
A

Treaty of Versailles means losses of territory and resources further strain the economy

25
What happened in May 1921 that led Germany towards economic crisis?
Reparation Bill set at 138 billion marks/ £6.6 billion. Set to be paid by the end of the month
26
What happened in between 1921- 22 that led Germany towards economic crisis?
German government follows policy of fulfilment to prove how unfair conditions are
27
What happened in July 1922 that led Germany towards economic crisis?
German government asks for holiday from reparation payments. Allies refuse
28
What happened in December 1922 that led Germany towards economic crisis?
Reparations commissions declare Germany had failed to deliver on reparations payments
29
What happened in January 1923 that led Germany towards economic crisis?
French and Belgian troops occupy Ruhr. Germans organise passive resistance
30
What happened in 1923 that led Germany towards economic crisis?
Government prints more money to deal with loss of income from Ruhr, intensifying current inflationary crisis to further cause hyperinflation
31
How did the people react to the economic crisis?
- People don't forget the inflation People result to bartering
32
Who was Gustav Strasemann?
- Key figure of recovery of Weimar in 1920s - Member of DVP (centre right) - Became chancellor in August 1923, coalition was fragile, lasted only until November 1923 - Foreign minister from December 1923 to death in 1929 - Nobel Peace Prize 1926
33
Who did Strasemann replace in August 1923?
Chancellor Cuno
34
How did Strasemann act to try and limit the economic crisis?
- Called off passive resistance in Ruhr in September + promised to resume reparations payments - Cut government expenditure - Appointed financial expert Hjalmar Schacht to oversee intro of new currency- Rentenmark Schacht also took over leadership of Reichsbank, implementing fiscal measures to reduce inflation + balance expenditure against income
35
How did other countries feel about Strasemann and Schacht?
Actions of Stresemann and Schacht gained sympathy from the allies when Stresemann asked to hold an international conference to consider Germany's economic troubles-> led to creation of Dawes plan (between Germany, Britain/France, America)
36
What was the national debt in 1919?
144 Billion gold marks
37
What was the national debt in late 1922?
469 billion gold marks
38
How did national debt increase so much (government war financing)?
Government financed war with short term loans and printing money rather than increase taxes
39
How had manufacturing output changed by 1919?
Manufacturing output was 30% lower in 1919 than 1914
40
What were German economic losses under the terms of the Treaty of Versallies?
- Nearly 15% of its land - 75% of its iron ore - 68% of its zinc ore - ¼ of its coal production.
41
How did Germany react in May 1921 to the Reparations bill being set and the Allies demanding 1 billion marks by the end of the month?
This resulted in Chancellor Fehrenbach (ZP) resigning. He was replaced by Joseph Wirth (ZP) who, with his Minister of Reconstruction Walther Rathenau, decided to accept the demands and follow a policy of ‘fulfilment’ to show how the terms were unjust and unworkable. Opposed to this, the right launched a massive hate campaign against the Wirth government and its policy.
42
How was Germany reacting to the reparations payments from July to December 1922?
July 1922 the Weimar government ask the allies for a ‘holiday’ from reparations payments. The French PM, Poincaré, refused. By December Germany’s national debt was 469 billion marks, and inflation was increasing at an alarming rate, providing fresh ammunition for right and left-wing extremists.
43
What did Hugo Stinnes (industrialist in Reichstag) propose as a possible economic solution to the increasing inflation + how did the German government react to this?
suggested that German workers should work an extra 2 hours per day without additional pay for at least 10 years in order to overcome the present problems . Instead, the German government tried to cut back expenditure and printed more money to cover its debts.
44
What happened at the end of 1922 in terms of reparations
the reparations commission declared Germany had failed to deliver the promised coal and timber to the allies.
45
As a result of failure to pay reparations, what occurred in the Ruhr in January 1923?
Therefore, in January 1923, a French and Belgian force of 60,000 men entered the Ruhr. The Weimar government ordered the public to follow a policy of passive resistance. French and Belgian authorities responded by arresting mine workers and taking over mines and railways.
46
What impact did the loss of the Ruhr have on Germany?
The loss of income from the Ruhr (taxes, coal etc.) lead to the government printing even more money to compensate.
47
What were long term causes of Hyperinflation?
- Germany had made no financial provision for a long, drawn out First World War. - The Weimar government, faced with a difficult political situation post-WW1, extensively raised taxes on profits, wealth and income, but didn’t go as far as balancing the budget. - Victory in WW1 would have allowed Germany to settle its debts by claiming reparations from the defeated parties. This did not happen. - Reparations added to the financial burden after the war, especially as they had to be paid in hard currency (dollars or gold) rather than inflated German marks. - Despite the increasing costs of WW1, the Kaiser’s government decided against tax increases and instead sold war bonds and allowed national debt to grow larger and larger.
48
What were medium causes of hyperinflation?
- The war economy was concentrated on military weapons, and as such did not satisfy the requirements for civilian consumers. The high demand for, and shortage of, consumer goods began to push prices up.
49
What were short term causes of hyperinflation?
- The Weimar government chose to print more money and sell them in order to obtain the hard currency needed for reparations. - July 1922: German government made a request for a break from reparations. In December the Reparations Commission declared Germany to be in default and France and Belgium occupied the industrial Ruhr region. The Weimar government adopted a policy of deficit financing after the war in order to maintain a demand for good and create work, provide jobs for millions of returning troops and cover the extensive welfare state. - Workers in the Ruhr were asked to respond to the French occupation with passive resistance. The German government promised to continue paying wages, but at the same time it could not collect taxes or coal from the area. Coal had to be imported.
49
What were the socio-economic impacts of hyperinflation?
People resorted to barter, for example using coal or sausages as currency People carried their money round in sacks or wheelbarrows People wallpapered rooms with banknotes - People in debt and/or with mortgages quickly paid off what they owed - Workers wanted to be at the front of the queue on payday as whoever got to the shops first would get better prices than the person at the back of the queue because prices changed that quickly - Some former middle class people were forced to sell possessions to raise money
49
What were the political impacts of hyperinflation?
- The dramatic nature of the crisis led to extremists blaming fat-cat factory owners, Jewish financiers, the Versailles Treaty, Weimar democracy and Socialists - Nationalism increased as many blamed the Allies for what had happened
50
What were the social impacts of hyperinflation?
There were major food shortages as farmers did not want worthless money People such as pensioners living off life savings lost out significantly - Some people turned to crime out of sheer hardship - The health of the most vulnerable e.g. the elderly suffered due to poverty
51
What were the economic impacts of hyperinflation?
- Exporters gained from the weak currency - In the end a new currency, the Rentenmark, had to be introduced to restore confidence Entrepreneurs could get cheap credit to grow their businesses

Germany2: Empire to Democracy 1914-1929 (12 decks)

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