Challenges of 1923: French Occupation of the Ruhr

• In what year did the German government stop paying reparations?

  1923
• Why did the German government stop paying reparations in 1923?

  Because it could no longer afford to do so
• Which countries sent troops into the Ruhr in response to Germany stopping reparations?

  France and Belgium
• What was the Ruhr known for in terms of production?

  It produced 80% of Germany’s coal and iron
• What actions did France and Belgium take in the Ruhr after sending troops?

  They confiscated materials and goods as compensation for the lost reparations
• Why did the German government instruct miners to stop work during the occupation of the Ruhr?

  To prevent the invaders from taking the goods they produced
• What was the term used for the German government's strategy of instructing miners to stop work?

  Passive resistance
• What financial action did the German government take to support workers during the passive resistance?

  They printed money
• What economic consequence did the German government face as a result of printing money to pay workers?

  It triggered hyperinflation
• What were the key events following Germany's cessation of reparations payments in 1923?

  • Germany stopped paying reparations due to financial inability.
  • France and Belgium sent troops into the Ruhr.
  • They confiscated materials and goods from the Ruhr.
  • The German government instructed miners to stop work (passive resistance).
  • The government printed money to pay workers, leading to hyperinflation.
• At the beginning of 1923 the German government stopped paying reparations, because it could no longer afford to do so.
• France and Belgium responded by sending troops into the Ruhr, an area which produced 80% of Germany’s coal and iron. They confiscated materials and goods as compensation for the lost reparations.
• Since the Germany army was too small to fight against the French and Belgian troops, the government instructed the miners to stop work so that the invaders could not take the goods they produced. This was called passive resistance.
• The Government had to print money to pay these workers and to make up for the Governmental income they lost from the Ruhr. This triggered hyperinflation.