postwar problems

• The terms of peace were agreed in the Treaty of Versailles, in 1919. The Germans were humiliated and resented the Allies. They believed the treaty was diktat (a dictated peace) and that it was unfair.
• Terms of the treaty of Versailles


  Germany accepted balme for the war (Article 231. 'The war guilt clause')

  Germany must pay £6.6 billion in repirations to the allies

  The loss of land in Europe and all German colonies (Germany lost 10% of its land and 12.5% of its population)
• Military restrictions of the treaty of Versailles

  Maximum of 100,000 soldiers, 15,000 sailor, 6 ships, 0 submarines and 0 armoured vehicles

  Demilitarisation of the Rhineland

  Unable to join with Austria-Hungary
• The period of 1919 to 1923 was particularly difficult for Weimar Germany especially because they were unable to pay their reparation installments.
• In 1922 the weimarr republic stopped paying their reparation installments
• In 1923, France and Belgium seized the Ruhr to take what they believed Germany owed them in the form of coals and other goods
• The Ruhr was the main industrial are in Germany and the French and Belgians took control of all factories, mines and railways in the area.Their actions were legal in the eyes of international community because of the treaty of Versaille.
• In respons, to the seizing of the Ruhr Ebert told German workers to gon on strike(passive resistance).France and Belgium brought in their own workers
• Over the 8 months the Ruhr was occupied 132 people were killed and 150,000 Germans were kicked out of their homes
• Causes of hyperinflation

  • Governments tied currency to a fixed value of gold
  • Weimar Germany didn't have enough gold to match the amount of money it was printing
  • Value of the German mark fell and the price of goods increased rapidly(hyperinflation)
• Consequences of hyperinflation

  • In 1918 a loaf of bread cost 0.6 marks by November 1923 it cost 201 billion marks
  • Prices rose by the hour so people boght goods as soon as they were payed
  • Peope began to use a barter system instead of money
• Social problems with hyperinflation

  • People with savings lost money
  • People with fixed income could'nt renegotiate their earnings
  • Elderly with fixed pensions could'nt get any more money so their income was destroyed
  • Small business owners went bankrupt
• Benefits of hyperinflation

  • Few benefitted
  • People with debt benefitted because it was easier to pay off
  • Farmers benefitted because people payed more for food
• Most people suffered from hyperinflation and people didn't get their savings back when hyperinfaltion ended