The Years Between the Wars

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The Years Between the Wars

• Chapter 24

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Europe Recovered From W.W.I

• W.W.I had huge costs
• Millions of lives had been lost
• Combined 200 billion had been spent fighting the
  war.
• As a Result
• By 1918 every major European country was nearly
  bankrupt

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Effects of W.W.I

• W.W.I affected Europe in two main ways.
• 1. Europe lost its dominance in world affairs.
• Japan and U.S. became more dominant.
• 2. Sudden rise of new democracies.
• Between 1914 and 1918 Europes last absolute
  rulers were all over-thrown.
• For the first time in history most European
  countries were ruled by democratic governments.

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New Republics

• The new republics that had formed were shaky.
• Even nations that had democracy for many years
  experienced problems.
• European countries had so many political parties
  that no one party could rule alone.

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Germanys Post War

• Weimar Republic
• The democratic government that was set up in
  Germany after 1919.
• They signed the Treaty of Versailles and as a
  result the population saw the government as
  traitors
• Weimar Republic would prove to have serious
  weaknesses.
• Faced enormous economic problems
• Spent 37 Billion in W.W.I but only taxed its
  people 1.5 Billion.
• To make up difference Germany printed money when
  needed.
• Skyrocketing inflation.
• Money lost its value.

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The German Mark
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The Dawes Plan

• Germany recovered from the 1923 inflation.
• The Dawes Plan
• Headed by Charles Dawes (American)
• Financial plan to strengthen the German Economy
• 200 Million loan from America banks to stabilize
  Germany currency.
• Set realistic schedule for Germanys reparations
  payments
• Extremely Successful
• By 1929 Germany factories were producing as much
  as they had in 1913.

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A Hope For Peace

• As prosperity returned to Germany they returned
  to playing an active role in European affairs.
• 1925 Germany and France signed a treaty
• France and Germany should never make war against
  each other.
• Germany will respect existing borders of France
  and Belgium
• As a result Germany was admitted into the League
  of Nations.

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Kellogg-Briand Pact

• The Kellogg-Briand Pact
• Originally an agreement between America and
  France.
• Other countries would agree as well.
• Countries that signed the treaty pledged to
  renounce war as an instrument of national
  policy.
• Nearly every country in the world would sign.

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?????????????

• What could be a potential problem with the
  Kellogg-Briand Pact?

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Kellogg-Briand Pact 1928

• 15 nations committed outlawing aggression and war
  for settling disputes
• Problem ? no way to enforce

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1920s

• U.S. economy was enjoying a boom in the 1920s.
• But this growth disguised problems.
• Weaknesses in the American Economy will cause
  serious problems.
• Wealth is distributed unevenly
• Most people are to poor to buy goods produced
• Factory owners cut back on production and lay off
  employees
• Farmers produce more food than people can eat.
• Framers cannot repay loans and lose their land.

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The Great Depression

• In 1929, stock prices in the United States
  plunged. The Great Depression was in effect.
• Long business slump of the 1930s
• Marked by bank failures, loss of savings, and
  unemployment.

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Not only the U.S.

• When the American economy collapsed, the shock
  waves were felt around the world.
• After the stock market crash, worried American
  investors began to call back their loans abroad
  to cope with the crisis at home.
• This withdrawal dealt a hard blow to the economy
  of Western Europe.

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World Wide Depression

• The effects of the depression were felt
  worldwide.
• Trade between nations dropped
• Unemployment rates increased
• Because of war debts and dependence on American
  loans, Germany and Austria were particularly hard
  hit.
• World production fell by 38 between 1929-1932.

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Note to Mrs. Murray Go to Depression Power Point,
parts I and II with fill in notes