CH11 - BP Treaty of Versailles

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Did the stipulations of the Treaty of Versailles play a role in creating the global Great Depression, why or why not? Consider American and European economic policies and reference the pertinent articles of the treaty. Following World War I, world leaders gathered and held the Paris Peace Conference in 1919 to negotiate terms of a new world order. This was where the Treaty of Versailles was signed and marked the end of the 5-year conflict. This treaty later went on to cause great turmoil and economic issues for Germany, as they struggled to pay back the reparation money for the War. These ongoing problems for the country led to destabilization and radicalization in the years following the signing of the Treaty of Versailles, adding also to some of the causes of the Great Depression. In January 1918, President Woodrow Wilson went before Congress to lay down 14 points for an idealistic idea for Peace. Seven of those points addressed territorial issues between countries while the rest was a vision for peace. Wilson also called for a general association of these nations to mediate international disputes, which would lay the foundation for the League of Nations. During the Paris Peace Conference, the leaders of 32 states met to discuss the future, however, the meeting was mostly negotiated by the big 3. (American Civilization). The Treaty of Versailles was signed on June 28,1919, and consisted of 240 pages and contained 440 articles. These articles were divided into different provisions, territorial, military, and financial and economical. Germans were not happy and felt as though they were betrayed by the leaders who signed the
treaty. This anger over the betrayal fueled the rise of populism and nationalism in the 1920s and 30s and would later lead to the rise of power of Adolph Hitler in 1933. (Treaty of Versailles explained – End of WWI 1919). Articles 10 and 11 of the treaty were specific to the League of Nations and stated that any aggression, threat of danger, war, or threat of war would be addressed by the whole League of Nations as a group, regardless of whether they were threatened directly or not. It was also declared that each member of the league has the friendly right to bring attention to any circumstance affecting international relationships which in turn will affect international peace. An important and perhaps the most controversial part of the Treaty was Article 231 also known as the “War Guilt Clause” and Article 232 which stated that Germany and their allies were responsible for all the loss and damage suffered because of the war and would pay back reparations. Many Germans were upset and found it unfair as they were not allowed to be included in the League of Nations itself. The reparations were set later after the Treaty was signed but amounted to around 132 billion gold marks. (Jun 28, 1919 CE: Treaty of Versailles). Another large part of the Treaty of Versailles was the cession of German land. Several articles in the Treaty addressed the change in ownership of land. Articles 45-50 stated that the Saar Basin be turned over to France for its coal mines. Article 51 gave the territory of Alsace Lorraine back to France as well, which was previously seized by Germany in 1871. The demilitarization of Rhineland was also a big initiative that happened in the Treaty as France was
trying to ensure Germany would not attack France again. Articles 87 to 93 gave the newly independent Poland pieces of Prussia and other territories with ethnic German groups. Article 119 stripped Germany of its colonies in China and Africa. (Treaty of Versailles explained- End of WWI). The military provisions in Articles 159-163 reduced the size of the German Army to nearly 100,000 from the previous 1.9 million. The disarmament of Germany was covered in Articles 164-172 which limited the number of guns and ammunition they could have. The German naval sources and fleets were also reduced to just six battleships, six light cruisers12 destroyers, and 12 torpedo boats and completely eliminated the submarine fleet. Articles 198-202 prohibited Germany from having an Air Force except for seaplanes. (Treaty of Versailles). The financial and economic provisions are what led to Germany specifically falling into the Great Depression. The reparations that Germany was told to pay back far exceeded what the economy could handle at the time. Inflation in Germany, which had begun to accelerate in 1922, spiraled into hyperinflation. The value of the German currency collapsed and the battle over reparations had reached an impasse. In late 1923, Charles Dawes headed a committee to review the German Reparations. Under the Dawes Plan, Germany’s annual reparation payments would be reduced, increasing over time as its economy improved; the full amount to be paid, however, was left undetermined. (The Dawes Plan, the Young Plan, German Reparations, and Inter-allied War Debts)
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The Dawes plan then led to the creation of the Young Plan in 1928 but this essentially failed before it was even implemented due to the economy crash in Germany, and The Great Depression was starting to take its toll. In 1931, President Hoover approved a one-year moratorium on all the reparation payments. The following year, Allied delegates attempted to write off the remaining debt at the Lausanne Conference, but the United States Congress refused to sign it. The U.S. agreed that Germany still was on the hook for the damage costs. (The Dawes Plan, the Young Plan, German Reparations, and Inter-allied War Debts). By 1932, as much as 30% of the German labor force was unemployed. The Nazi party rose in popularity following The Great Depression. Soon after in January 1933, President Paul Von Hindenburg elected to make Adolf Hitler the prime minister after fear that there would be a communist uprising. Hitler became dictator and made all the decisions for several years to come. He decided to cancel all payments effective in 1933 and Germany did not pay any reparation money during his rule. In fact, his goal was to get the Treaty of Versailles cancelled altogether. People in Germany looked at him as an extremely courageous man for his refusal to pay anything owed. ( Germany’s World War I Debt) Adolf Hitler believed the only way to come to power and gain territory was to go to war, so he began to rearm the German people, which was a direct violation of the Treaty of Versailles. In 1936, Hitler dispatched military units into Rhineland. By 1938, he took over Austria. On September 1 st of 1939, Hitler
attacked with extreme force using his Blitzkrieg, or “lightning war” against Poland using tanks, aircraft, and infantry. Two days later, Poland announced war on Germany and thus the European phase of World War II began. (American Civilization). In conclusion, The Treaty of Versailles proved to do more harm than good in the end. While it temporarily created peace between the allies and Germany, it caused several problems leading into The Great Depression and World War II. The Treaty itself was not a direct cause of either The Great Depression or the second World War, however, it did play a part in both events. The War Guilt Clause caused a lot of chaos and led to a large debt for Germany when they were already experiencing financial struggle and economic issues. The additional stipulations in the Treaty played a role in Germanys experience of The Great Depression. Works Cited: Title: American Civilization - Chapter 11: America and the Second World War, 1941-1945 Date: n.d. URL: https://slcc.instructure.com/courses/922557/pages/ch11-dot-1-textbook? module_item_id=21502771
Title: Germany’s World War I Debt Was So Crushing It Took 92 Years to Pay Off Date: June 27, 2019 URL: https://www.history.com/news/germany-world-war-i-debt-treaty-versailles Title: Jun 28, 1919 CE: Treaty of Versailles Date: October 19, 2023 URL: https://education.nationalgeographic.org/resource/treaty-versailles-ends- wwi/ Title: The Dawes Plan, the Young Plan, German Reparations, and Inter-allied War Debts Date: n.d. URL: https://history.state.gov/milestones/1921-1936/dawes Title: The Treaty of Versailles Date: 1919 URL: https://www.census.gov/history/pdf/treaty_of_versailles-112018.pdf
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Title: The Versailles Treaty Date: 1919 URL: http://www.digitalhistory.uh.edu/disp_textbook.cfm?smtID=3&psid=1159 Title: Treaty of Versailles explained- End of WWI 1919 Date: Oct 27, 2021 URL: https://www.youtube.com/watch?v=5PFZ1cO01PQ