Ruhr Saga Flashcards
How much reparations did Germany have to pay?
6.6 Billion pounds
When did French and Belgium troops march into the Ruhr?
January 1923
Why did French and Belgium troops march into the Ruhr?
Germany had fallen behind in reparation payments and France were determined to get paid what they were owed. The Ruhr was the richest industrial area of Germany and the French and Belgians took over all the area’s factories and coal mines. Goods and raw materials were sieged.
How did the German government respond to the occupation of the Ruhr?
The German public were furious and feelings of Dolchstoss were back. The government ordered the workers in the Ruhr to resist. This did not work as the workers still had to get paid even though they were not working. This resulted in hyperinflation.
How was hyperinflation made worse?
The huge reparation bill
German businessmen had been speculating with German money (buying and selling shares on the stock market) and made the problem worse.
How much did the value of the mark rise by?
Value of mark to £1: July 1914-20 marks Jan 1922-764 marks Jan 1923-71,888 marks Nov 1923-1,680,800,000,000,000
How did hyperinflation affect the German population?
Old people and people who lived on their savings were screwed as their savings were wiped out.
Ordinary workers found it harder to buy food but wages were risen in response to inflation
Middle class was severely affected as savings were wiped out and businesses went bankrupt
Upper class didn’t suffer as they had wealth in gold, foreign bank accounts or land
When did hyperinflation end?
It reached it’s peak in November 1923. In August, Stresseman was appointed as chancellor. He called for an end to passive resistance as it caused the devaluation of the Mark. Germany would have been bankrupt otherwise if the resistance continued. He also introduced a temporary currency called the Rentenmark in November 1923. The amount of money in circulation was reduced and limited now. In August 1924, the economy stabilised sufficiently and the Reichsmark was permanently introduced.
How did Stresseman’s government avoid decision making in the Reichstag?
Used emergency decrees so they can make decisions without negotiating with coalition members
When did Stresseman’s government collapse?
November 1923 and he was appointed Foreign minister
How did big businesses stabilise the economy?
They formed cartels which fixed prices then stabilised the economy. They also organised themselves into associations of shared interests.
