Chapter 26: The Futile Search for Stability: Europe Between the Wars, 1919-1939

Section 1: An Uncertain Peace

Focus Question: What was the impact of World War I, and what problems did European countries face in the 1920s?

The peace treaties had left some countries unhappy. US President Woodrow Wilson placed his hope in the League of Nations. The League of Nations wasn’t very effective at enforcing the peace. The US wasn’t a member and Britain wouldn’t stand behind France (leaving France embittered and “alone”). France’s pre-war ally, Russia, was now the Soviet Union and a hostile power. France formed an alliance with Poland and the “Little Entente” (Czechoslovakia, Romania, Yugoslavia).

The French Policy of Coercion (1919-1924): France’s main defense was the strict enforcement of the Treaty of Versailles- Reparations: Allied Reparations Committee settled on $33B, payable in yearly installments of 2.5B marks Allied threats to occupy the Ruhr Valley, seize assets made Germany willing to attempt reparation in 1921. By 1922, Germany said it couldn’t pay any more, so French troops occupied the Ruhr Valley. France intended to operate the mines and factories, collecting the profits. Germany responded by printing more money, making its inflation much worse (eventually worthless) Mark’s value: 4.2 to the dollar in 1914, 130B to the dollar on 11/1/23, and 4.2T on 11/30/23. Economic crisis led to October Communist-staged uprisings countered by Nazis in November. Britain and the US forced France to reassess the reparations.
The Hopeful Years (1924-1929): New governments in Britain, France and Germany fostered better relationships. In Germany, Gustav Stressemann’s government worked for improvement. Stabilized the money by issuing new currency. Gave up passive resistance, sought new reparations settlement- 1924: Dawes Plan proposed loaning Germany money (initially $200B), which encouraged US investments.

a) The Spirit of Locarno 1925: spirit of cooperation led to Locarno Treaty: Germany recognized its borders with France and Belgium (caution: Germany’s borders with Poland were not included). 1928: Kellogg-Briand Pact: 63 nations signed, pledging not to use war as an “instrument of national policy” (caution: nothing was said about enforcing the pact against violators). Treaty of Versailles had demanded Germany reduce its armaments – but nobody else had to. As a result, multiple disarmament conferences achieved nothing (no one trusted)

b) Coexistence with Soviet Russia: By 1924 “both sides” realized that things were stable. Soviets: international revolutions were unlikely; Europe: USSR was “here to stay”

The Great Depression: After the controlled economies of the World War I, most countries expected to return to the free market. However, both unions and business cartels had been strengthened, so govt. regulations were necessary. Tariffs, war debts and reparations damaged the economy. The postwar prosperity was very fragile, and was essentially destroyed by the Great Depression.
a) Causes: A downturn in domestic economies. Agricultural overproduction led to tariffs to keep it out, especially in central and eastern Europe. Increased use of oil and hydroelectricity led to a slump in the coal industry. US investments in Europe (esp. Germany), were pulled out in favor of the booming stock market. Collapse of the US stock market in October 1929- US losses led to pulling out even more money from Europe, weakening European banks. Vienna’s most prestigious bank, Credit-Anstalt, collapsed in 1931. Depression’s downward spiral (lowered production, increased unemployment…)
b) Unemployment: At its height in 1932, 25% of British, 40% of German work force was unemployed.
c) Social and Political Repercussions: Unemployment for lower-paid women wasn’t as bad as for men. The unease of this role reversal made some men more open to the appeals of demagogues. Unemployed young men more open to joining gangs. The traditional remedy, lowering wages and raising tariffs, only made it worse. Communism and its belief in the failure of capitalism seemed reasonable. Fascism, and its belief that a strong authoritarian leader was the solution seemed reasonable.

Section 2: The Democratic States in the West

Focus Question: How did France, Great Britain, and the United States respond to the various crises, including the Great Depression, that they faced in the interwar years? How did World War I affect Europe’s colonies in Asia and Africa?

Wilson’s hope that World war I was fought to “make the world safe for democracy” seemed about right. Four major European states and a host of minor ones had functioning democracies. Increasingly, women were granted suffrage (but not Italy, France, and Spain until after World War II).

Great Britain: Loss of US and Japan markets for industrial goods during the war led to increased unemployment. Wartime coalition government, led by Liberal David Lloyd George, was unable to improve things. 1923: Labour Party overtook the Liberal Party as 2nd most powerful (behind the Conservatives) Labour-Liberal coalition put Labour Ramsay MacDonald in as prime minister. Lasted only 10 months, as Conservatives charged his administration with being friendly to communism. 1925-1929: Conservatives oversaw increased prosperity. Despite a 1926 general strike begun by miners protesting lowered wages (caused by worldwide coal glut) 1929: Labour regained power just as Great Depression hit; it was out by 1931. Liberal-Conservative coalition brought Britain out through balanced budgets and protective tariffs. They ignored John Maynard Keynes’ economic ideas. Depression is based not on oversupply but decline in demand – which governments can influence. Through public works and deficit spending (money it doesn’t have from revenues)
France: The strongest power on the continent, it needed to rebuild the devastated areas of northern and eastern France. Conservative government, led by Raymond Poincaré, intended to use German reparations to accomplish it-1924: with the failure of the occupation of the Ruhr, a Socialist-Radical coalition was voted in. They were both anti-military anticlerical, and pro-education. Radicals were democratic small property owners, Socialists were Marxists. They couldn’t agree on economic and financial issues, and therefore couldn’t solve France’s woes. Therefore, they lost to the Conservatives in 1926. 1926-1929: as with Britain, this time was one of relative prosperity. 1932: Great Depression hit hard and there was political chaos (6 governments in 19 months) Right-wing groups – similar to fascists – took advantage and frightened the public. Leftist parties worked together to form the Popular Front in 1936, led by Léon Blum. They instituted a French “New Deal,” supporting workers. Established collective bargaining, 40-hour work week, 2-week paid vacations, and minimum wages.
The Scandinavian States: They were largely successful in combating the Great Depression. Social democratic governments (on the rise since the late 19th C.) organized rural and industrial cooperatives. Privately owned and managed, they tended to compromise between communism and capitalism. They established strong social “safety nets” – with high taxes and large bureaucracies. Subsidized housing, free prenatal care, maternity allowances, and paid vacations
The United States: With the Great Depression, industrial production was down almost 50% by 1932. Elected in 1932, Roosevelt pursued policy of strong government intervention. Called the “New Deal,” it created agencies to bring relief, recovery, and reform FDIC insured bank accounts up to $5000, FERA provided funds to the states for helping the poor, CCC employed over 2M in reforestation and conservation projects. 1935: progress was slow, so Roosevelt instituted a “Second New Deal,” stepping up government assistance. WPA created public works, building bridges, roads, post offices, and airports. Social Security Administration was responsible for old-age pensions and unemployment insurance. NLRB worked to assist labor unions. The New deal probably avoided a revolution, but it didn’t really solve the problems of unemployment.
European States and the World: The Colonial Empires: Despite the war, Allied nations managed to keep their empires intact. France’s and Britain’s actually expanded, taking German colonies and controlling parts of the Middle East. Nevertheless, resistance to European dominance increased.
a) The Middle East: Iraq and Saudi Arabia became independent. In Turkey, Mustafa Kemal (adopting “Ataturk” as his last name) introduced the trappings of democracy. Westernized his culture: westernized the alphabet, abolished aristocratic titles, added family names, made it a secular state (breaking the power of Islam), gave women equal rights.
b) India: By World War I, Mohandas Gandhi was already referred to as Mahatma (“Great Soul”) He had set up a movement of nonviolent resistance working to rid India of British rule. He practiced civil disobedience, spun his own yarn, wove his own clothes. 1935: Britain granted India self-rule (independence would wait until after World War II).
c) Africa: Black Africans who had fought in the war had expected independence, but they were disappointed. Germany’s African colonies were given to the British and French as mandates.

Section 3: The Authoritarian and Totalitarian States

Focus Question: Why did many European states experience a retreat from democracy in the interwar years? What are the characteristics of totalitarian states, and to what degree were these characteristics present in Fascist Italy, Nazi Germany, and Stalinist Russia?

Democracy worked in France, Britain, and Low Countries, Scandinavian states, Switzerland, Czechoslovakia. But Italy and Germany had succumbed to fascism and together with Stalinist Russia there were 3 totalitarian states. Many other states adopted authoritarian structures (dictatorships). Totalitarian structure was an outgrowth of the increased governmental authority employed during World War I [How to tell authoritarian from totalitarian: authoritarians prohibit dissent; totalitarians demand active loyalty]. Loyalty is sought using propaganda and modern communication media (then: radio and motion pictures). Characteristics of totalitarianism— It controls everything: economic, political, and social aspects of life— It is led by a single leader from within a single party—Individual will is subordinated to the will of the masses (as determined by the leader). Could be extreme conservatism (Italy, Germany) or extreme liberalism (Stalin’s Soviet Union). Resulted in a change in perception of the political spectrum: perhaps it’s not linear with opposite poles.

Fascist Italy: Economic turmoil, political disorder and general insecurity made the time ripe for someone like Benito Mussolini
a) Impact of World War I: Positives: Italy gained territory: Trieste, a bit of southern Austria- Negatives: 700K lives were lost and the war cost 148B lire (twice all the expenditure combined from 1871 to 1913). Demands for territory (Fiume and Dalmatia) were rejected, and some Italians felt “cheated”. Inflation hit the middle class, demobilization created high unemployment and dissatisfied veterans.
b) The Birth of Fascism: Mussolini’s rise to power began in 1912 as an editor of a socialist newspaper, Avanti (“Forward”). Began WW I advocating neutrality (the official socialist position) but turned to intervention. 1919: created a new party, Fascio de Combattimento (League of Combat), from which fascism is derived. It did very poorly in the election, but was saved by political stalemate. Socialists (the largest party), Liberals, and Popolari (Christian Democrats) couldn’t form a coalition. Socialists spoke of revolution, which alarmed conservatives. 1000’s of strikes in 1919 and 1920 created a climate of class warfare and continual violence. Mussolini shifted to rightist politics and picked up middle- and upper-class support. He played on Italians’ sense of victimhood as a result of WWI. He realized that anticommunism, anti-strike activity, and the use of force could gain him power. 1920-1921: bands of armed Fascists (squadristi) were turned loose on socialist organizations and activities. 200K black-shirted Fascist squads, filled particularly with WWI veterans and students. They looked to create disorder so that they could come in and “clean it up”. Mussolini formed an alliance with Liberals (who thought they were using him). Middle and upper classes formed about 60% of the Party. 1922: The Fascists planned a march on Rome to seize power. It was a bluff, but King Victor Emmanuel III made Mussolini the prime minister. After the appeasement, the Fascists marched on Rome anyway to make it look like it was the reason.
c) Mussolini and the Italian Fascist State: Fascists were still a minority in parliament, so they moved slowly. 1924: the Fascists won 65% of the votes and 70% of the seats in parliament. The election did include Fascist fraud, force, and intimidation. 1926: Fascist dictatorship was operational. The press could be jailed for showing disrespect for the Catholic church, the monarchy, or the government. The prime minister was the “head of government” and could legislate by decree. Police could arrest without due process – even for political “crimes”, a secret police (OVRA) was formed. All anti-Fascist parties were outlawed. Youth organizations were formed to mold the young into followers. In the 1930s, all male organizations were given pre-military exercises to provide training for war. The family was the foundation of Italy, and the woman was the foundation of the family. Women were encouraged to be homemakers and baby makers (encouraging population growth). They were discouraged from voting and from working outside the home. In the 1930s, this helped reduce the problem of unemployment during the depression. Further, larger families were encouraged: subsidies were given and prizes were awarded. Despite all their efforts, Italy never became as thoroughly totalitarian as Hitler’s Germany. The army and the monarchy were never fully absorbed into the Fascist state. Despite promising to help workers and peasants, Mussolini sided with large landowners and industrialists. 1929: wanting the Catholic church’s support, he proposed the Lateran Accords— It created Vatican City, a sovereign entity, in return for the official recognition of the Italian Fascist state.
Hitler and Nazi Germany: In 1923, an obscure rightist party, led by Adolf Hitler, tried to emulate Mussolini’s march on Rome. 10 years later, it controlled Germany.
a) Weimar Germany: After WW I, a democratic German state was created called the Weimar Republic, but it had poor leaders. 1925: Paul von Hindenburg, a military hero, was elected president. The Weimar Republic suffered from enormous economic problems. The hyperinflation of 1922-1923 wiped out the savings of the middle class. They turned to rightist groups opposed to republican government. After a period of relative prosperity, the Great Depression, starting in 1930, made things even worse. High unemployment fostered social discontent, fear, and extremist parties.
b) The Emergence of Adolf Hitler: After being a failure in secondary school, Adolf Hitler moved to Vienna to pursue art. Failing at that, he stayed on, living the bohemian life of an artist anyway. Hitler’s four major influences in Vienna Georg von Schönerer: leader of a Pan-German movement and an extreme German nationalist. Karl Lueger: mayor of Vienna and a leading anti-Semite (with the Christian Social Party) Lanz von Liebenfels (Adolf Lanz): publisher who proposed that Aryans were destined to rule the earth. Richard Wagner, composer: the artist is subject to his own rhythms, music spoke to the need to dominate. 1913: he moved to Munich, Germany, with no sense of purpose, but WWI gave him one. At the end of the war, he returned to Munich with the purpose of entering politics.
c) The Rise of the Nazis: 1921: having joined the obscure German Workers’ Party, he assumed full control. It became the National Socialist German Workers’ Party (Nazi) to attract workers and nationalists. He developed an identity, using flags, badges, uniforms, its own newspaper… And its own militia, the SA (Sturmabteilung, or Storm Troops), used to both defend and attack. 1923: the party had 55K members, plus 15K troops in the SA; it was the strongest right-wing party. They and other right-wing parties decided to march on Berlin to overthrow the government. On their own they decided to stage an armed uprising in Munich (the “Beer Hall Putsch”). Hitler was arrested. Tried, and jailed for 5 years, a lenient sentence from a sympathetic judge.
d) The Nazi Seizure of Power: In jail, Hitler wrote Mein Kampf, outlining his beliefs: extreme German nationalism, anti-Semitism, vicious anticommunism, all held together by a Social Darwinism that justified national superiority. That justified authoritarian rule over the masses and Lebensraum (“living space”) justified expansion. Upon release, he reassembled the Nazi Party and pushed Führerprinzip, leadership by a single person. Reorganized on a regional basis to compete in elections and attract new recruits. It appealed to brash youth, who wanted a muscular party with fights, speeches, and comradeship. In urban areas, he worked to recruit workers away from Socialist and Communist Parties. It didn’t work, so he shifted his strategy toward middle-class votes in small towns and rural areas. When high unemployment hit, extremist policies became more attractive. 1930: Nazis polled 18% of the vote and gained 107 seats in the Reichstag. Chancellor Heinrich Brüning couldn’t form a working parliamentary majority, so democracy was dying. Hitler began political maneuvering. Actively campaigned all over Germany by car and airplane. Targeted campaign to specific groups. To workers, he attacked high finance; to the middle class he played on fear of Communism. He appealed for a class-free German nationalism (honor and strength through traditional militarism). Additionally, Nazi Party grew to 800K members and an SA of 500K. 1932: Reichstag seats rose to 230 in July but declined to 196 in November. The Nazis wouldn’t gain power solely by elections; it was time to change its emphasis. That was OK, because the government power rested on decree, not on the Reichstag. 1933: Hitler was seen by many as the person to unite various groups and save Germany from Communism. The elites pressured Hindenburg to appoint Hitler as chancellor and allow him to form a new government. It was assumed that there would be adequate controls on Hitler. Hermann Göring was appointed minister of the interior (and head of the Prussian state police). He purged the police of non-Nazis and established the SA as an auxiliary police force. After the mysterious Reichstag fire, Hitler got Hindenburg to grant the government emergency powers. Effectively, the Nazis could arrest and imprison anyone without due process. Without a majority, Hitler still persuaded the Reichstag to pass the Enabling Acts. It “enabled” the suspension of the constitutional government for four years to deal with “problems”. Hitler became a dictator appointed by the Reichstag itself. With total control, the Nazis went about implementing their ideals. It purged the civil service of Jews and democrats, established concentration camps for opponents. Trade unions were dissolved, as were all other political parties. The only threat to the Nazis were the armed forces and the SA (critical of Hitler under Ernst Röhm). Hitler had the leaders of the SA killed – in return for the support of the army. 1934: when Hindenburg died, Hitler became the sole ruler of Germany. All soldiers and public officials were made to swear a loyalty oath. On August 19, 85% of Germans voted in favor of the new order: the Third Reich had begun.
e) The Nazi State (1933-1939): Hitler’s goal was to create an Aryan racial state that would dominate Europe. Already in 1933, the Nazi government initiated a 2-day boycott of Jewish businesses. Soon laws barred “non-Aryans” from legal professions, civil service, judgeships, medical profession positions, teaching cultural and entertainment, and the press. 1933: the Nuremburg Laws excluded Jews from citizenship and relationships with Germans… the laws were created to separate Jews and to build “racial purity”. 1938: Kristallnacht – synagogues were burned, 7000 businesses were destroyed, 30K Jewish males were rounded up and sent to concentration camps. Jews were barred from public buildings, prohibited from owning, managing, or working in retail stores. Hitler’s first “solution” to the “Jewish problem”: encourage emigration Nazi ideology emphasized the different roles for men and women. Men were “warriors” and “leaders,” women were wives and mothers. Hitler’s mother’s birthday was a holiday, medals were awarded for 4 or more children. Women were driven out of “men’s” jobs, encouraged to work in “women’s” jobs (social work, nursing) (however, during WWII, Germany needed women to assume some of those “men’s” jobs)
The Soviet Union: With the victory in the civil war, the Soviet Union’s existence was secure. The “war communism” necessary to win the war was an expansion of governmental control. They nationalized transportation, communication, banks, mines, factories, and businesses of more than 10. They had also moved to control production and distribution of food. Peasant resistance and drought, coupled with an industrial collapse, crippled the economy.
a) The New Economic Policy: 1921: Lenin created his New Economic Policy (NEP), a modified capitalist system where peasants could sell crops openly and small businesses (<20) could be owned privately. 1922: the Union of Soviet Socialist Republics (USSR or “Soviet Union”) was created. Agricultural production climbed to 75% of prewar levels, but industrial production lagged. The NEP had saved the Soviet economy, but it was intended to be only temporary.
b) The Struggle for Power: 1922-1924: Lenin suffered a series of strokes and died in 1924. The struggle for power was between factions of the Politburo, the communist party’s leading body. The left wanted Leon Trotsky and to continue the world communist revolution. They wanted to end the NEP and build stronger industry at the expense of peasantry. The right wanted Joseph Stalin and rejected world revolution in favor of a more moderate socialist state. They wanted to keep the NEP and protect the peasantry. Trotsky and Stalin had a bitter personal rivalry. Trotsky had helped lead the Bolshevik Revolution and the Red Army. Stalin, neither a strong speaker or writer, was party general secretary and brilliant at organization. In that job, he made key appointments and developed a strong network of supporters. 1927: Trotsky was expelled from the party, made his way to Mexico (where he was murdered in 1940). 1929: Stalin took complete control of the party and eliminated the Old Bolshevik Party.
c) The Stalinist Era (1929-1939): The Stalinist takeover was more revolutionary than the Bolshevik one in 1917. He began a series of 5-year plans in 1928, transforming the Soviet Union from agricultural to industrial. Instead of consumer goods, the Soviets produced capital goods, armaments, and heavy machinery. The social costs of industrialization were staggering. Though the industrial labor force expanded, investment in housing declined. Real wages declined by 43% from 1928 to 1940. Strict laws limited workers’ freedom of movement. Propaganda told the workers to sacrifice for the sake of the new nation. Stalin rapidly collectivized agriculture: it served the Communist ideal and was to provide capital for industry. By 1934, Soviet Union’s 26M family farms had been reorganized into 250K collective farms. Stalin was willing to starve the unwilling peasants (perhaps 10M of them died in artificial famines). To achieve his goals, Stalin strengthened the bureaucracy and punished his opposition. Resisters were sent to forced labor camps in Siberia. 1936-1938: he conducted the “Great Purge,” trying and condemning to death any opponents. First the Old Bolsheviks, then army officers, diplomats, union officials, party members, intellectuals. Perhaps 8M Russians were arrested; millions died in Siberia. Alarmed by the falling birthrate, Stalin reversed some of women’s gains from the 1920s. Before divorce and abortion had been easy, women were encourage to work outside the home. After, these were taken away, homosexuality was declared criminal. Women were praised for staying at home and having large families (it was “patriotic”).
Authoritarianism in Eastern Europe: Though not totalitarian, a number of other states had conservative authoritarian governments. They had broad police powers, but did not try to establish a new social order, just defend the existing one. They limited participation of the masses, accepting their passive obedience rather than seeking active loyalty. Eastern Europe had been radically changed after WWI, creating new parliamentary democracies: Austria, Poland, Czechoslovakia, and Yugoslavia. Existing states adopted parliamentary democracy: Romania and Bulgaria, and Greece gained independence in 1924 and Hungary looked like a democracy but was controlled by aristocrats. One by one, most moved away from democracy to authoritarian rule. They had had little or no experience with democracy, parliaments, or liberalism. As largely agrarian societies, they had been controlled by large landowners. Ethnic tensions continued. Fearful of land reform, communist revolution, or ethnic conflict, the landowners and the church sought order. Working with the privileged and powerful, authoritarians promised to maintain the old order 1923–Bulgaria; 1926–Poland; 1929–Yugoslavia; 1930s– everyone else but .Czechoslovakia, Italy, and Germany, served as models.
Dictatorship in the Iberian Peninsula: Spain’s parliamentary monarchy couldn’t deal with social tensions brought on by boom and inflation in WWI. 1923: military coup lasted until 1930; 1931: King Alfonso XIII left Spain. A new republic was instituted, with a coalition of democrats and reformist socialists. Political struggles tore Spain apart for 5 years. 1936: the antifascist coalition the Popular Front (democrats, socialists and the revolutionary left) took over. General Francisco Franco led military forces to overthrow the Popular front.
a) The Spanish Civil War: International interference: Hitler supported the Nationalists, Stalin supported the Republicans. As a result, the US, France, and Britain adopted neutrality (US volunteers formed the Lincoln Brigade). 1939: after three years, Franco’s Nationalists won, with 400K casualties only about 100K were on the battlefield; the rest were from air raids, disease and reprisals another 200K were executed after Franco’s victory.
b) The Franco Regime: Franco established a dictatorship lasting almost 40 years, until his death in 1975. Though not a dictatorship, it was a conservative authoritarian regime, favoring business and the church.
c) Portugal: 1910: the monarchy was overthrown and replaced by a republic. Inflation after WWI brought instability and in 1926, army officers seized power. Antonio Salazar, their finance minister, controlled the government for the next 40 years.