Foundations Leading Up to WWII

Treaty of Versailles

  • War Guilt Clause: Article 231 of the Treaty of Versailles forced Germany to accept complete responsibility for initiating World War I.
  • Draconian Reparations:
    • Germany lost 68,000 km² of territory (equivalent to 82 Calgary's), including Alsace and Lorraine.
    • Part of Western Prussia was given to Poland.
    • Germany was forced to pay 132 billion francs (605 billion USD).
    • Germany lost almost all of its ore and agriculture production.
    • All of Germany's overseas colonies were given away to other nations.
    • Germany’s military was reduced to 100,000 soldiers.
    • Conscription was banned.
    • Navy vessels were restricted to under 10,000 tons.

Great Depression

  • Germany Struggles:
    • By 1922, inflation in Germany was accelerating rapidly.
    • In 1923, when Germany failed to make a payment, France and Belgium seized a piece of land as leverage.
    • American banks gave loans to 17 countries, including Germany, to help rebuild their economies.
  • The Dawes Plan:
    • Created to allow Germany to pay less each year until their economy improved, at which point payments would slowly increase.
  • German Mark Inflation (Examples):
    • Jan 1919: .170
    • Sept 1919: 499
    • Jan 1920: 1,340
    • Sept 1920: 1,201
    • Jan 1921: 1,349
    • Sept 1921: 2,175
    • Jan 1922: 3,976
    • Sept 1922: 30,381
    • Jan 1923: 372,477
    • Sept 1923: 269,439,000
    • Oct 2, 1923: 6,631,749,000
    • Oct 9, 1923: 24,868,950,000
    • Oct 16, 1923: 84,969,072,000
    • Oct 23, 1923: 1,160,552,882,000
    • Oct 30, 1923: 1,347,070,000,000
    • Nov 5, 1923: 8,700,000,000,000
    • Nov 30, 1923: 87,000,000,000,000
  • The Young Plan:
    • Reduced German reparations to 37 Billion Marks (425 billion).
    • Aimed to alleviate pressure on Germany, which inadvertently affected European economies.
  • Cracks Forming (Roaring Twenties in the U.S.):
    • Immense spending, investing, and borrowing.
    • Massive Unemployment: Resulted in more borrowing from banks
    • Agricultural Value Drops: No need for massive amounts of farming to support the war
    • Margin Stocks: Too many accounts were built on sticks and straws.
    • Ignoring the signs: September and October showed decline in stocks, but people saw this as an opportunity to purchase more.
    • Rising Interest Rates: Banks were raising interest rates to curb speculation.
  • The Economic Crash:
    • October 23, 1929 (Wednesday): Massive sell-off in the stock market due to loss of faith in the motor industry.
    • Black Thursday: Widespread panic amongst lenders led to demands for higher collateral, causing a massive sell-off.
    • Within the first three minutes of Black Thursday, 34 million dollars was lost.
    • By the end of the day, 14 billion dollars was gone from the stock market.
    • Monday 28 and Black Tuesday 29: A combined total of 25% of the stock market would crash.
  • Chain Reaction:
    • Unemployment in the U.S. reached 25% as families lost homes and savings.
    • The market for foreign goods dried up, meaning less imports.
    • Citizens couldn’t pay their loans to the banks, resulting in banks recalling loans from European countries.
    • Germany, barely surviving with American loans, was devastated by the recall, leading to unprecedented unemployment, hyperinflation, and the need for radical change.

Ultranationalism

  • Definition: Intense radical ideology where one’s nation is considered superior to all others, promoting aggressive expansionism and suppression of perceived inferior groups.

Appeasement

  • Definition: A diplomatic policy used by the British and French to avoid war with aggressive powers by reluctantly listening to their demands or turning a blind eye.
  • The Nazi Party would break some rules by aggressively expanding or annexing parts of Europe, and to avoid a full conflict, the British and French governments would give the Nazi Party a slap on the wrist.

League of Nations

  • Ideals:
    • Established on January 10, 1920, as the first worldwide intergovernmental organization.
    • Goal: Maintaining global peace and fostering cooperation.
    • Promotion of International Cooperation: Nations can work together to address issues and improve relations.
    • Maintenance of Peace and Security: Maintain peace by avoiding conflict, and agreeing to not resort to war.
    • Disarmament: Reduce armaments to the lowest possible amount consistent with protection, but not aggression.
    • Peaceful Settlement of Disputes: Arbitration and diplomatic settlement rather than conflicts.
  • Failure:
    • Structural Weakness: Required unanimous voting, making decisions difficult.
    • No Enforcement: Lacked a military to enforce decisions.
    • Notable Failures: Failed to act against aggressive powers that invaded countries.
    • Absence of Major Powers: The U.S. refused to join, embracing isolationism, which diminished the League's influence.

Conclusion

  • The Interwar period was built around the idea of having guilty parties repair Europe and creating an international organization that promotes diplomacy rather than war.
  • Unfortunately, the guilty parties would succumb to extreme pressure, and the League of Nations failed to actually do much of what it was created to do.
  • This would result in situations being worse, and creating multiple powder kegs ready to burst.