economic and social problems in germany, 1919-24 Flashcards
How had the war been financed in Britain?
Through implementing higher taxes and government borrowing.
How had the war been funded by Germany and what did this mean?
Through increased borrowing and printing more money.
It meant that government debt grew and the value of currency fell.
Why was raising taxation a risk for the Weimar Republic?
It would risk losing the already limited support of the Weimar Republic that they had as it gave anti-republican parties the ability to claim that taxes were being raised for reparations.
Why was it difficult for Germany to reduce spending?
Because they still needed to pay civil servants, and as support for the republic was still so weak the government were avoiding making them redundant.
What had happened to prices between 1918 and 1919, and between 1919 and 1920?
They had doubled, and then quadrupled again.
Who led the 1920 coalition and what party dominated it?
Konstantin Fehrenbach.
The Centre Party.
Who supported the Centre Party?
Many wealthy and powerful German industrialists.
How were German industrialists benefiting from inflation?
By taking short-term loans from Germany’s central bank to expand their businesses.
By the time they had to repay, the real value of their loans had decreased massively due to inflation.
What was the rate of unemployment by 1921?
1.8%, compared with 17% in Great Britain.
How much did Germany have to repay in reparations?
£6.6 billion to be paid in annually instalments.
Why did the presentation of the amount of reparations cause political crisis in 1921?
The cabinet of Fehrenbach resigned in protest of the excessively harsh terms.
Who was Fehrenbach replaced by?
Chancellor Joseph Wirth.
How many days did the Germans have to accept the terms regarding the reparations?
Only 6, which meant that just like in 1919 the German government had no choice but to unwillingly accept the terms.
What did Germany have to request in January 1922 and again in July 1922?
For a postponement of the January and February instalments.
They then asked for a further suspension of payments for the rest of the year.
What did Germany ask for in November 1922?
A loan of 500 million gold marks and to released from obligations for 3-4 years in order to stabilise its currency.
What happened to the Ruhr in 1923?
French and Belgian forces occupied the Ruhr industrial area of western Germany in order to extract payment of reparations by force.
What was the problem with Germany’s gold reserves and also with its coal reserves??
It was inadequate for the scale of the reparations that were required to be made in gold.
They’d lost a lot if its coal in the Treaty of Versailles, meaning they couldn’t fulfil the section of reparations that needed to be paid in coal.
Why were Germany not allowed to pay with manufactured goods?
Workers in Allied countries regarded it as a threat to their jobs and businesses.
Why couldn’t Germany increase its reserves of foreign currency?
Because the Allies had destroyed Germany’s export trade by confiscating its entire merchant fleet as well as imposing higher tariffs on imports of German goods.
What had the Allies’ force of reparations caused Germany to do?
Print more money, causing inflation to rise even more.
What did Germany’s lack of coal payments to France cause the French to do?
They and the Belgians sent a military force of 60,000 men to occupy the Ruhr in January 1923, trying to force Germany to pay the reparations.
When was the Ruhr occupied by French forces?
January 1923.
What was the aim of the French when occupying the Ruhr?
To take the area’s coal, steel and manufactured goods as reparations.
