Finding Jobs Rebuilding ravaged lands Debts of war Great Depression of 1929 Finding strong leaders Overcoming dissatisfaction with peace settlements.
The Treaty of Versailles, which worked out the details of the end of World War 1, forced Germany to accept full responsibility for the War and required them to pay reparations for damages occurred by the Allied forces. These debts crippled their economy and were one contributing factor leading to the rise of the Nazi party, which promised Germany future glory. In fact, Germany was not the sole cause of World War I; the assassination of the heir to the throne of Austria-Hungary in 1914 and a series of miscommunications and acts of sheer stupidity among several of Europe's major powers all helped it along.
Balboa
It was more the economy of Germany that became worthless. After loosing the war, Germany was forced to pay reparations, under the Treaty of Versailles. The total money owed was 269,000,000,000 in gold marks (German currency). That much in gold coins equaled about 233,405,018 lbs of pure gold. In trying to cover it's debts, Germany began printing money, which lead to severe hyperinflation of national prices. This hyperinflation caused instability in the economy and the German mark to be useless. Germany had also been accepting loan offers from various countries to help pay the reparations. In 1929, when the Stock Market Collapsed, many of these loans were called in, and Germany had to pay out substantial amounts of money.
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Louis Joseph Marie Dubois has written: 'War debts and reparations' -- subject(s): Public Debts, Reparations, World War, 1914-1918 'The French Washington and London agreements and the Dawes plan' -- subject(s): Public Debts
The government helped the great depression of 1800 by taking in the states debts and taxing the people.
crop prices fell, and the debts of farmers increased.
High tariffs and war debts helped spread the depression world wide. Major European banks went bankrupt, causing alarm in other foreign banks. Great Britain went off the gold standard. The Bank of England no longer redeemed its paper money in gold bullion or coin. Investors feared that all paper money would lose its value so they withdrew $1.5 billion in gold from American banks. This further weakened the global economic situation.
When Germany failed to pay their reparation payments in 1923, France occupied the Ruhr. This caused an international crisis and a new payment plan, called the Dawes Plan, was implemented in 1924.
Harold G. Moulton has written: 'Japan' 'World War debt settlements' -- subject(s): Debts, public, European War, 1914-1918, Finance, Public Debts, Reparations 'The control of Germany and Japan' 'The reparation plan' 'Can inflation be controlled?' 'Germany's capacity to pay' -- subject(s): Economic conditions, European War, 1914-1918, Reparations
The Great Depression was global. No country was able to insulate itself from it. Germany was more severely affected than some countries because it was very dependent on short term loans from the U.S. Germany took out loans from the United States to pay its reparations.