post war problems

• Ruhr


  western industrialised area of Germany
• Hyperinflation


  Where prises rose very quickly and therefore money looses its value
• Why was there hyperinflation?

  Under the Treaty of Versailles, Germany was forced to agree to pay reparations (compensation for war damages) of £6.6 billion to the allies.

  The government was running out of money to pay these and so printed more which caused hyperinflation in 1923.
• Impacts of hyperinflation


  • Weimar government lost lots of support from middle-class as they were the hardest hit (all of their savings became worthless)
  • Bank notes and savings became worthless e.g. loaf of bread = 200 billion marks in 1923
• Another reason for hyperinflation:

  Revenue of germany was only 1/4 of what they needed for reparations as unemployement and falling factories ,due to WW1, lead to less taxes.
• Timeline of hyperinflation (1921-23)

  • April 1921-the bill for reparations was set at £6.6 billion and was due in annual installments
  • 1921- 1st installment of £50 mil was paid
  • 1922- nothing was paid and french was runnning out of patience
  • Jan 1923- French+Belgian troops entered the Ruhr, this was legal under the treaty of v
• August 1923- what did Stresseman do?


  Stresemann stabilized the German economy by introducing the Rentenmark and stopped the passive resistance in Ruhr.
• French reaction to strikes/ passive resistance:


  Reacted harshly, killing over 100 workers and expelling over 100,000 protestors from the region.
• • Workers: needed wheel-barrows to carry wages/paid daily instead of weekly
  • middle class: lost all of their savings