Invasion of the Ruhr and the Hyperinflation Crisis of 1923
1. In 1919 the Germans had to promise to pay reparations for causing WWI
2. In 1921 the Reparations Commission announced that Germany would be required to pay £6.6 billion in annual instalments of goods and money. It managed to make the first payment
3. In 1922 the German government announced it would not be able to pay and asked for more time. The British government agreed to this but the French government insisted that Germany must pay
4. In January 1923, 60,000 French soldiers entered the Ruhr (an industrial area of West Germany) to take what they were owed – they took control of factories, mines, steelworks & railways
5. The Germany was not strong enough to take military action against the French so ordered a policy of passive resistance, meaning Germans would not co-operate with the French
6. The German workers went on strike and refused to work with the French. Production ground to a halt
7. During the next eight months, 132 Germans were shot dead & 150,000 sent away from the region
8. As the factories were not selling any goods or making money to pay the workers, the German Government paid the strikers by printing money & giving it to them