The Search for Stability
From 1921 to 1936
What Caused Unrest
Effects of Unrest
French Demands-French demanded increased security, so they wanted strict reinforcement of the Treaty of Versailles. This, in turn, made Germans pay for damages done in the war. In April of 1921, the Allied Reparations Commission determined that Germany owed an equivalent of 33 billion U.S. dollars.
Inflation In Germany
The Treaty of Locarno
Causes of the Depression
The second factor was an international financial crisis involving the US stock market. In 1929, the US stock market took a huge plunge with all the prices crashing. With all the crashes, the Americans had to pull money and investments out of the German banks, drastically changing the German economy.
Democratic States after the War
The republic also faced many different economic issues. In 1923 & 1922. Most all workers in Germany saw a huge pay cut. These workers decided to become hostile towards the republic. from 1924-1929, Germany had a huge prosperity, until the Depression finally hit them in 1930.