1. The Futile Search for Stability
CH.9 SECTION 1

2. Think about this…
 What are some of the effects that an unstable
government can have on a country?
 After WWI, many different political parties arose.
What political parties are you familiar with in the
U.S.? In other countries?

3. League of Nations
 Much weaker than originally planned
 The US was NOT a member
 Senate did not ratify Treaty of Versailles
 Members of the league would not agree to use force
against nations that violated international law.

4. Instability in Germany
 Germany owed 132 billion German Marks (33 billion
US dollars) paid in yearly installments
 After the first year they had a financial crisis and
announced they could not pay
 French occupied Ruhr Valley and planned to collect
money by operating Ruhr mines and factories
 Workers went on strike, and the government paid
their salaries by printing more money
 By November 1923 4.2 trillion marks= $1 US
 Money was worthless

5. Dawes Plan
 An international commission produced a new plan
for reparations in 1924- Dawes Plan
 Reduced reparations
 Coordinated Germany’s annual payments with its ability to pay
 Granted an initial $200 million loan for German recovery

6. Treaty of Locarno
 Begun by a new spirit of accord between Germany
and France
 Treaty guaranteed new Western borders for
Germany
 Germany soon after joined the League of Nations
 Everyone believed this meant lasting peace

7. Democratic States after the war
 Germany
 Created a new republic called the Weimar
 No strong political leaders
 Serious economic problems and was hit by the Great depression
 France
 Was the strongest European power after the war
 Did not feel the effects of the Great Depression until 1932
 Economic problems caused political chaos
 Popular Front Government formed by leftist parites (communist,
socialists, etc)
 Started the French New Deal
 Gave workers right to collective bargaining, a 40hr work week, paid
vacation, and a minimum wage

8. Democratic states cont.
 Great Britain
 Lost many of its markets to the US and Japan during the war
 A new conservative government claimed credit for getting
Britain out of the depression using balanced budgets and
protective tariffs
 The U.S.
 More than 12 million were unemployed by 1933
 FDR was elected and formed the New Deal
 Increased program of public works
 Welfare system
 1935 Social Security Act