Hyperinflation and the Treaty of Versailles

Hyperinflation and the Treaty of Versailles

The treaty of Versailles was one of the five treaties that dealt with

the defeated powers as well as being the most famous of the five and

also became notorious for overall effects on Germany.

Germany signed the treaty reluctantly and under mass protest due to

the terms and conditions the treaty enforced on Germany and the effect

it would eventually have on Germanys Empire and economy.

The main terms were firstly the surrender of all German colonies as

League of Nations mandates; the return of Alsace-Lorraine to France;

demilitarisation and a fifteen-year occupation of the Rhineland. The

demilitarisations didn't cease there as Germany was confronted with a

limitation of 10,000 strong army with no conscription, no tanks or

heavily artillery. Overall this seriously dented Germanys main pride

and focus as it destroyed the countries main strength in an effort to

ensure collective security therefore deflate any chance of German

retaliation and protect against a German power revival.

The treaty also attacked Germanys monetary stability by making German

pay £6.6 million in reparations to pay for the death and destruction

caused during WW1 in connection with the war guilt clause the treaty

also implied. The above reparations eventually led to Germanys

inflation and struggle to remain united and basically have a surviving

populace.

Many had the opinion that the Treaty of Versailles was too harsh and

unfair on Germany because as well as collective security there should

have been an aspect of collective responsibility. The treaty of

Versailles was meant to rebuild European trade and wealth, these hopes

where destroyed because Germany could not afford to pay the

reparations. The reparations Germany were forced to pay caused major

problems and led Germany into a spiral of economic disaster. The years

of unrest included communist rebellions and a left and right wing

divide.

The reasons for discontent ranged, thousands of German people were

poor and starving consequently poor living conditions led to an

influenza epidemic - this killed thousands more people.