The Ruhr Crisis IB 20th Century Topics.

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The Ruhr Crisis IB 20th Century Topics

Causes The French Fear of Security US and British Isolation Growing sympathy for Germany in Britain

Causes Reparations 132 Billion Gold Marks (33 Billion dollars est.) French wanted them paid Owed money to the US Wanted revenge on Germany Britain was ambivalent to reparations Needed to pay the US too, but didn’t want to collapse Germany Fear of German isolation

Some Background on the Ruhr The Ruhr Valley was the Industrial Center of Germany Coal and Steel Production Lumber

The Trigger Germany fails to deliver lumber France declares Germany in default of reparation payments January 11, 1923: Belgian and French Troops invade the Ruhr German workers went on strike

1923 French Soldiers in the Ruhr Area

Results In retaliation, Germany orders a strike and prints money to pay the strikers (goes into hyperinflation) In economics, hyperinflation is inflation that is very high or "out of control". Fear Germany would become communist Middle Class in Germany wiped out The whole incident was humiliating and causes Germans to lose faith in their government

German Hyperinflation In economics, hyperinflation is inflation that is very high or "out of control". Germany went through its worst inflation in 1923. In 1922, the highest denomination was 50,000 Mark. By 1923, the highest denomination was 100,000,000,000,000 Mark. In December 1923 the exchange rate was 4,200,000,000,000 Marks to 1 US dollar.

French troops occupying the Ruhr Valley French troops occupying the Ruhr Valley. Rough treatment of Germans by black colonial French troops led to German resentment and humiliation Ruhr Valley

The Dawes Plan (1924) Causes 1. The Ruhr Crisis & Hyper Inflation The Plan 1. Made loans available to Germany 2. Froze payments for two years 3. Lowered payments Result 1. Persuades France to withdraw troops 2. Germany could make payments 3. Germany adopts the policy of fulfillment