Reparations & the Ruhr

Reparations and the Ruhr

Under the Treaty of Versailles, Germany had to pay £6.6 billion in reparations (payments to the victors) to the Allies. This was a huge burden and Germany found it hard to pay.

Difficulty with paying reparations

The period of 1919 to 1923 was particularly difficult for Weimar Germany. Most especially because they were unable to pay their reparation instalments (fixed regular payments).
In 1922, the Weimar Republic stopped paying their reparation instalments (fixed regular payments).
- In 1923, France and Belgium retaliated by seizing the Ruhr (German region) to take what they believed Germany owed in the form of coal and other goods.

The seizing of the Ruhr

The Ruhr was the main industrial region in Germany.
- The French and Belgians took control of all factories, mines and railways in the area.
The actions of the French and Belgians were legal in the eyes of the international community because of the Treaty of Versailles.

The German reaction

In response to the seizing of the Ruhr, Ebert told German workers to go on strike. This was called ‘passive resistance’.
- But France and Belgium simply brought their own workers in to take their place.
Over 8 months, 132 people were killed and 150,000 Germans were kicked out of their homes in the Ruhr.

Hyperinflation

After the Ruhr crisis, to help pay France and Belgium quicker, the Germans printed more money. This led to hyperinflation and had disastrous effects on the economy.

Cause of hyperinflation

When money was printed, governments tied currency to a fixed value of gold.
But Weimar Germany did not have enough gold to match the amount of money it was printing.
This meant that the value of the German mark fell and that the price of goods increased rapidly.
- This caused hyperinflation (price of everything increases extremely quickly).
Germany's war debts and the interest payments on these meant that they had debts worth 175% of their total national output (Debt: GDP of 175%). This is the same level as Greece in the Eurozone crisis.

Consequences of hyperinflation

In 1918, a loaf of bread cost 0.6 German marks. By November 1923, it cost 201 billion German marks.
As prices rose every hour, people bought goods as soon as they were paid. This meant that they carried money round in wheelbarrows.
- To get around the problem of hyperinflation, people used a barter system (trading items) instead of money.

Benefits of hyperinflation

A few people benefitted from hyperinflation.
- People with debt benefited because it was easier to pay off.
- Farmers benefited because people paid more for food.
However, it is important to remember that most people suffered because of hyperinflation. People did not get their savings back when hyperinflation ended.

1The Weimar Republic 1918-1929

1.1World War One

1.1.1WW1

1.1.2The Weimar Republic

1.1.3Early Challenges to Weimar

1.1.4Reparations & the Ruhr

1.1.5Weimar Recovery

1.1.6Weimar Living Standards

1.1.7Weimar Culture

1.1.8End of Topic Test - WW1 & Weimar

1.1.9Grade 9 - The Weimar Republic

2Hitler's Rise to Power 1919-1933

2.1Early Development of the Nazi Party

2.1.1Hitler & the Beginnings of the Nazi Party

2.1.2End of Topic Test - Start of the Nazi Party

2.2The Munich Putsch & the Lean Years

2.2.1The Munich Putsch

2.2.2The Lean Years, 1923-1929

2.2.3End of Topic Test - Putsch & Lean Years

2.2.4Grade 9 - Hitler's Rise to Power

2.3The Growth of Support for the Nazis

2.3.1The Impact of the Great Depression

2.3.2End of Topic Test - Great Depression

2.4How Hitler Became Chancellor

2.4.1Article 48 & Political Turmoil

2.4.2von Papen & Hindenburg's Pact

2.4.3End of Topic Test - Chancellory

2.4.4Grade 9 - How Hitler Became Chancellor

3Nazi Control & Dictatorship 1933-1939

3.1Creating a Dictatorship, 1933-1934

3.1.1The Rise of Hitler

3.1.2End of Topic Test - Dictatorship

3.2The Police State

3.2.1The Police State

3.2.2Repression & Concentration Camps

3.2.3The Nazis & Religion

3.2.4End of Topic Test - Police State

3.2.5Grade 9 - Dictatorship and Police State

3.3Controlling & Influencing Attitudes

3.3.1Propaganda & Censorship

3.3.2Nazi Art & Culture

3.3.3Church Opposition & Social Conformity

3.3.4Youth Opposition & the July Plot

3.3.5End of Topic Test - Controlling Attitudes

3.3.6Grade 9 - Controlling Attitudes

4Life in Nazi Germany 1933-1939

4.1Life in Nazi Germany

4.1.1Women in Nazi Germany

4.1.2Youths in Nazi Germany

4.1.3Employment & Living Standards

4.1.4End of Topic Test - Life in Nazi Germany

4.2The Persecution of Minorities

4.2.1Nazi Racial Beliefs

4.2.2The Persecution of the Jews

4.2.3The Death Camps

4.2.4End of Topic Test - Persecution

4.2.5Grade 9 - Life in Nazi Germany

Jump to other topics