GLOBAL DEPRESSION 1919-1939

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GLOBAL DEPRESSION1919-1939
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Turmoil of Versailles

• Border disputes in Eastern Europe cause
  resentment.
• U.S. does not ratify T.of V. and is not part of
  the League of Nations
• The League is powerless to intervene in
  international disputes

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Turmoil

• High inflation and unemployment factories and
  banks close
• Mark becomes worthless by Nov. 1923
• 4.2 TRILLION Marks 1.00 U.S.
• Germany unable to pay reparations 30 of work
  force unemployed (6 mil.)
• France occupies the German Ruhr Valley collect
  payment by using factories mines

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The Worthless German MarkWeimer Republic 1923
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The Dawes Plan 1924

• An International commission produces a new plan
  for reparations.
• Reduced reparations coordinated Germanys
  annual payments
• U.S. loans 200 mil. for German recovery
• Opens door to heavy American investments in Europe

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Charles Dawes

• Chairman of Commission

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The Treaty of Lacarno

• Peace between Germany France guaranteed
  Germanys western borders
• 1926 Germany joins League of Nations
• 1928 The Kellogg-Briand Pact 63 nations sign an
  accord to renounce war as an instrument of
  national policy (no consequence for violating
  pact).

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Aristide Briand (Fr.) Austin Chamberlain (G.B.)
Gustav Stressmann (Germ)The Treaty of Lacarno
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Stock Market Crash 1929

• Mid 1920s prices fall because of
  overproduction (i.e. - wheat)
• International financial crisis The U.S. loaned
  money to Germany to pay reparations to G.B.
  France opening the door for American investors
• Investors begin to pull money out of Europe to
  play in the booming U.S. stock market
• October 1929 U.S. Stock Market Crashes
• Investors pull more money out of Europe
  European banks crash

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The Great Depression

• U.S. Pres. Franklin Roosevelt (FDR) signs the
  New Deal Active government intervention
  creating a Public works (CREATES JOBS) program
  Roads, Dams, Bridges, Flood Control (Tennessee
  Valley Authority)
• Social legislation begins social welfare
• 1935 Social Security Act old age pension
  unemployment insurance

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European Depression

• Millions out of work (G.B. 25, Germany 40)
• In response governments take a stronger role in
  regulating economies
• Marxism/Communism become more popular
• Masses turn to political leaders who promise
  simple solutions in exchange for dictatorial power

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Fascism Emphasizes

• Loyalty Obedience
• Punish those responsible
• Struggle or be doomed
• Propaganda censorship
• Mass rallies
• Promises to save economy
• Restore national pride
• Uniforms, salutes, symbols
• Loose individuality for state