The Ruhr Crisis, Locarno, and the “Locarno Spring”

1. The Ruhr Crisis, Locarno, and the “Locarno Spring” Molly Sanborn, LekhoiChau, and Ja’MareiaBonner

2. France’s Post-WWI Position • France disagreed with Britain on how Germany should be treated after World War I. • France wanted to weaken the German economy through heavy reparations. • France needed these reparations to pay back its debt to the United States. • 132 billion gold marks were to be paid to the Allied powers. • France was afraid for its security. • The Anglo-American Guarantee was denied. • It did not want to be susceptible to future German attacks.

3. Britain’s Post-WWI Position • Britain felt that Germany’s treatment at the Paris Peace Conference was too harsh. • The reparations that Germany was being forced to pay would cripple its economy. • Germany was the economic engine of Europe, therefore a crippled Germany would result in a weak European economy. • If the harsh treatment of Germany continued, it might become closer to Russia.

4. The Start of the Ruhr Cisis • Germany missed a shipment of timber as part of its reparation payments to France. • Despite British objections, France and Belgium invaded the Ruhr on January 11, 1923. • The goal was to collect the missed reparation payments by force. • Mines and factories were seized by French and Belgium troops. • German workers refused to co-operate with the French troops. Instead, they revolted against them. • They destroyed mines, factories, and goods. • Violence broke out between protestors and troops.

5. Effect of the Ruhr Crisis on the German Economy • The Weimar Government attempted to support its workers. • It printed more paper money, which depreciated its value. • Everyday goods cost billions of marks. • The middle class was hit the hardest. • All of their savings were wiped out. • They became cynical and pessimistic about the future. • This led to susceptibility to extremists like Hitler. • The Allies saw that the German economy and government were close to completely collapsing. • Collapsed Germany meant no reparation payments and a failing European economy. • Anarchy could ensue, which could lead to the embrace of communism.

6. The Great Inflation • During World War I, the exchange rate between the German mark and the U.S. dollar fell. By 1919, it was 47 marks to the dollar. • Reparation payments were to begin in June 1921. • Payments were to be 2 billion gold marks, plus 26% of German exports per year. • This led to rapid devaluation of the German mark to approximately 330 marks to the dollar by November 1921. • Germany began buying foreign currency, which increased the devaluation of the mark.

7. The Great Inflation (cont.) • By December 1922 the value fell to 8,000 marks to the U.S. dollar. • French and Belgian troops invaded the Ruhr – Germany’s industrial region – to collect reparations in the form of goods. • The mark was essentially worthless at this time, so France was looking for another method of payment. • The inflation was aggravated when the Weimar government printed more paper marks to support its passively resisting workers.

8. A political cartoon showing the overprinting of marks during the Great Inflation. A chart showing the inflation of the German mark from the end of World War I to 1923.

9. The Policy of Fulfillment • Gustav Stresemann was appointed as the Chancellor of Germany in 1923. • He implemented the Policy of Fulfillment. • His goal was for Germany to reclaim a respected place in the world. • This policy supported German co-operation with the Treaty of Versailles. • The goal was to receive concessions in the future from the Allies. • Passive resistance was called off in the Ruhr. • This policy was meant to show the Allies that Germany deserved a revision to the Treaty of Versailles due to its good behavior and co-operation.

10. U.S. Involvement in the Ruhr Crisis • The United States was the wealthiest nation in the world during this time. • French and British debts to the U.S. were being paid back through the collection of reparations from Germany. • Charles Dawes developed a plan for economic relief. • The Dawes plan rescheduled Germany’s reparation payments. • The deadlines were longer and the amount decreased. • American capital went into German businesses and government bonds.

11. A diagram depicting the exchange of money in the Dawes Plan.

12. The Locarno Treaty • The initial meeting took place in Locarno, Italy in September 1925. It was formally signed in London in December 1925. • It involved Germany, Britain, France, Belgium, and Italy. • Germany agreed to accept its borders with France and Belgium as permanent. • The borders were to be guaranteed by Britain and Italy. • Germany was allowed to join the League of Nations. • Germany’s eastern borders were not fixed. • Britain would not guarantee these countries. • Germany agreed to seek border changes with Poland and Czechoslovakia through discussion instead of violence.

13. The Locarno Treaty (cont.) • This was a good opportunity for France and Germany to reconcile. • Germany could now rebuild its economy. • It was not a threat to European safety. • Britain and France could repair their relations. • Had drifted apart over the issue of the treatment of Germany. • The Locarno Treaty promoted optimism throughout Europe. • It inspired a spirit of co-operation and peace.

14. A cartoon by David Low showing Aristide Briand, Austin Chamberlain and Gustav Stresemann signing the Locarno Treaty (1925).

15. The Locarno Spring • Allied troops were removed from the Rhineland. • Allied supervision of German disarmament stopped in 1927. • Tensions between Germany and the Allies were on the way to becoming resolved. • Germany was treated more like an equal and less like a criminal. • This provided an opportunity for France to repair its relationship with its former allies the United States and Britain. • Germany had a more active role in European politics through its membership in the League of Nations. • Peace in Europe seemed to be achievable.

16. The Locarno Spring (cont.) • Under the Treaty of Rapallo, Germany was still co-operating with the Soviet Union. • This meant that Germany could avoid its disarmament. • Germany’s eastern border with Czechoslovakia and Poland had not been fixed under the Locarno Treaty. • Germany’s relationship with the Soviet Union was dangerous because the Soviet Union wanted to redraw the borders of Eastern Europe. • The League of Nations and collective security were not strengthened. • In theory, peace could be achieved, but in reality it was not likely.

17. References • http://www.ibguides.com/history/notes/the-ruhr-crisis-1923-locarno-and-the-locarno-spring • http://ibhistory.wikidot.com/the-ruhr-crisis-1923-locarno-and-the-locarno-spring-1925 • http://ibhistory2012.wikia.com/wiki/Locarno_and_the_Locarno_Spring-_Artmis_Rahbar