Transcript Chapter 15 Lesson 1 Day 1

Learning Goal
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The students will understand the instability in
Europe after WWI
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Annual
Appropriate
Depression
Deficit Spending
Surrealism
Uncertainty Principle
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Discussion
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How do you think the citizens of Germany
felt about these provisions of the treaty?
German citizens would not have been happy
about having to pay for war damages and
having to give up territory.
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Treaty of Versailles and the United States: The U.S. Senate
refused to ratify the Treaty of Versailles, so the United States
could not join the League of Nations.
League of Nations: Without the support of the United States,
the League of Nations was weakened.
War reparations: France demanded war reparations from
Germany, in accordance with the Treaty of Versailles, and sent
troops to occupy the Ruhr Valley when Germany could not pay.
German inflation: To pay government salaries, Germany printed
more money, which led to inflation.
Treaties and pacts: In the Treaty of Locarno, France and
Belgium agreed to new borders with Germany. Sixty-five nations
agreed to "renounce war" in 1928.
Discussion
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How might a strong League of Nations
have influenced France's decision to
occupy part of Germany?
A stronger League of Nations might have
found a peaceful resolution to the problem of
Germany's failure to pay war reparations.
Discussion
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How did Germany's financial crisis cause
problems in postwar Europe?
It caused inflation in Germany and was
related to France's occupation of the Ruhr
Valley.
Background
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The victorious Allies forced Germany to give up all of
its colonies in Asia and Africa, as well as to cede
land to France, Belgium, and Poland. Additionally,
Germans had to agree that the war was their fault.
Besides cash, they had to ship coal to France and
Belgium. When this went unpaid, these countries
invaded the heavily industrialized and valuable Ruhr
Valley. The Allies' desire to punish Germany and
destroy its armies inspired Hitler's later promises to
restore Germany's glory and retake lost lands.
Background
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German hyperinflation grew so fast that
printers stopped putting numbers on bills.
The price of a meal went up before diners
could finish eating it. A train ticket could not
be paid for with a life's savings.
Key Terms
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reparations can be decoded by hearing the
word repair in its pronunciation.
The prefix re- means "to undo or to do again,"
as in remake or return.
Economic downturn: Economic downturns
of individual
nations in the late 1920s affected
The
Great Depression
the worldwide economy. Prices for farm
products fell rapidly due to overproduction.
 Stock market: American investors stopped
making loans to Germany in order to invest in
the U.S. stock market. After the stock market
crashed, investors continued to divert money
from Germany, causing its banks to fail.
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Background
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In the United States in 1928 and 1929 the Federal
Reserve raised interest rates in order to hamper the
rise in stock prices, but stock prices continued to
soar. As interest rates rose, domestic spending,
especially on large ticket items, such as homes and
automobiles fell.
In October 1929 price declines in stocks led to a
wave of panic selling on "Black Thursday," as
investors lost confidence in the stock market. U.S.
stock prices declined approximately 33% between
their peak in September 1939 and their low in
November 1939.
Discussion
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How did investors in America help to
produce economic collapse in Germany?
When U.S investors stopped lending money
to Germany, Germany's banks failed.
Discussion
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Why do you think unemployment was so
high during the Great Depression?
Businesses lost money and could not afford
to employ as many workers.