The Impact of the Versailles Settlement on Germany
The Peace Settlement of Versailles 1919
The war ended with the armistice agreement on 11 November 1918. In
January 1919 in Paris, there was a conference to settle the peace terms
between the Allied powers and Germany. Germans were not allowed to hear
the terms of the treaty until 7 May and Germany suggested changes to the
treaty but the Allies agreed on very few. On 16 June Germany was given 7
days to except the terms of the treaty.
This lead to a political crisis in Berlin and led to the
formation of a a coalition government and on 28 June
the ToV was signed by all powers. It opposed much
harsher conditions on Germany than expected. Many
Germans regarded the ToV as a diktat (dictated peace).
There was hatred towards the politicians who signed it
through the life of the Weimar Republic.
The terms of the treaty
Territorial losses
Removed over 13% of German territory and its overseas colonies
Alsace-Lorraine was returned to France and land was given to Poland,
Denmark and Belgium and Lithuania. Additionally, Danzig (a city with a
majority German population) became a free state under the League of
Nations. All of this meant that Germany lost 75% of iron ore, 68% of zinc
ore, 26% of coal and 15% of its arable land.All of Germany's overseas
colonies in Africa and the Fat East were put under control of the League
of Nations.
Disarmament of Germany
Germany had to surrender all heavy weapons and remove armed forces from the
Rhineland. Conscription to the German armed forces was forbidden and the German army
was limited to 100,000 men and tanks and gas was forbidden. The German navy was
restricted to 15,00 men. The navy was allowed to a maximum of 6 battleships and o
submarines and a small number of coastal defence vessels. Germany was forbidden from
having an air force.
War Guilt
Under Article 231 of the treaty, Germany
had to accept responsiblity for starting the
war. The 'war guilt clause' made Germany
liable to pay reparations to cover the costs of
damage suffered in war. The final amount of
reparatioms for Germany to pay was £6.6
billion.
The Rhineland
The left bank of the Rhine and a 50 km strip on the right
bank was demilitarised. Allied army was based in the
Rhineland to ensure Germany fulfilled its treaty
obligations.
The Saarland
This area contained large reserves of coal and was taken from Germany and
placed under the control of the League of Nations for 15 years so Germany
would supply France, Belgium and Italy with free coal as part of the
reparations agreement.
Other terms of the treaty
Austria was forbidden from uniting with
Germany and Germany was not allowed to join
the LoN. Some germans were put on trial for
war crimes.
German reactions to the treaty
Many Germans were in disbelief by the governments decision to sign it. Until 1914,
Germany had been one of the greatest military powers in Europe. German people
before the treaty were under the impression that Germany were winning the war s
treaty came as a huge shock and they felt humiliated.
The German objections to the treaty focused on how it denied Germany of national self-determination which was emphasised
as important in Wilson's fourteen points. In the treaty millions of German speakers were placed under the control of
non-German states. e.g. Poland and Czechoslovakia. Additionally, the 'war guilt clause' was seen as unjust national humiliation
as they felt that they were forced into a just war by the Allies who encircled Germany. Moreover, the reparations caused a lot of
anger in Germany as they felt it was too high and would cripple the economy. The French were also given control of the
Sarrland and there was allied occupation of western Germany which outraged German nationalists. Finally, the disarming of
Germany and its exclusion from the LoN was viewed as unjust discrimination.
The political impact of the Versailles Treaty in Germany
The Political crisis of June
1919~ Scheidemann
resigned as he wanted to
reject the treaty and a new
cabinet led by Gustav Bauer
was formed and they signed
the treaty
The reaction of pro-republican parties
Most thought that signing the treaty was the
most sensible thing the Reich could do. They
believed in the policy of fulfillment where they
would obey the terms of the treaty. However,
the treaty turned some against the republic. The
treaty caused political demoralization which led
to association of the Republic with weakness and
failure.
Reaction on the Right
German nationalists could not accept the fact of Germany's military
defeat nor the establishment of the new republic. The signing of the ToV
led many to join groups trying to overthrow the Republic. Many
nationalists belived that those that signed the treaty betrayed the
'Fatherland' and were labeled as the 'November Criminals'. Their actions
of betrayal was referred to as 'the stab in the back'. This myth was actively
promoted by Lundendorff and led to attacks from nationalists on the
Republic. Many soilders gravited towards more extremist views when they
returned from Germany. Some turned to the Freikorps and right-wing
nationalist groups. Due to this, in the early years of the Republic, politics
were under threat form violent nationalist groups.
Reactions from abroad
Britain~ The british public were satisfied that
Germany had lost its overseas empire and large fleet.
However, Lloyd Gerogre belived that they shouldn't of
been so harsh on Germany as they needed Germany
as a strong trading partner. Many in Britain saw the
French as being greedy. Some also believed the
reparations level was too high.
France~ The French believed that
they suffered the most out of all
the nationals and were determined
to get revenge on Germany.
France's main points were met; the
demilitarization of the Rhineland;
the return of Alsace-Lorraine and
the payment of reparations.
Despite this, many still believed
they were too lenient on Germany
and the President Clemenceau was
defeated at the next elections in
1920.
The United States~ Reactions to the
Treaty of America were generally
negative, many thought that the treaty
had been unfair on Germany. The USA
refused to join the LoN and retreated
from involvement in European affairs.
Economic and social problems in Germany 1919-24
Financial problems in the aftermath of the war
Germany's defeat plunged the finances of the state into crisis. The war
effort required unprecedented levels of government spending. Germany
paid for the war effort through printing more money and increased
borrowing which put the government in more debt and the value of the
currency fell. in 1919, the new government was faced with a debt of 1.44
billion marks. To deal with the debt the government could either/and raise
taxes or reduce spending. However, raising taxes would risk alienating
support for the new republic and it was also very difficult for governments to
reduce spending. Even though the military expenditure was reduced, civil
servants still had to be paid. As the republic didn't want to lose support they
decided to instead just print more money which lead to inflation rise at a
dangerous pace. Nevertheless, inflation did have some effect on the national
debt and German industrialists were benefiting from inflation. Also,
unemployment was only at 1.8%.
The impact of reparations
The political impact of reparations
A reparations commission was set up to decide the scale of damage
caused by German forces in Allied countries. They concluded that
Germany should pay £6.6 billion in annual installments. The German
government was presented with this amount in 1921 with the
ultimatum to accept, it caused a political crisis in Germany however
there was no alternative. This was the start of the Policy of
Fulfillment in which the German government wanted to with the
sympathy of the Allies and a revision of the terms when they could
see that full payment was beyond Germany's capacity. In 1922 the
Reparations Commission granted a postpone on payment as
Germany was having great economic difficulties. In July there was
further suspension. In November 1922, Germany asked for a loan of
500 million gold marks and a further postpone of 3 or 4 years to
stabilize its currency. This made the French deeply suspicious and
viewed it as an excuse and refused to agree.
The economic impact of reparations
Reparations resulted in making
huge government debt even
harder to pay. Additionally,
German gold reserves and coal
reserves were inadequate for the
scale of reparations payments .
Germany couldn't make payments
on manufactured goods and the
Allies hampered Germany's export
trade by confiscating its entire
merchant fleet and imposing high
tariffs on imports of German
goods.The German response to
gaining money was to print more
which made inflation worse.
The hyperinflation crisis of 1923
The Franco-Belgian
occupation of the Ruhr
By the end of 1922 Germany had fallen seriously behind on its payment of coal to France. Therefore, The French and Belgians sent a military force of 60,000 men to occupy the Ruhr