The document discusses the instability in Europe after World War 1. It summarizes that the League of Nations was weak without US support. Germany struggled with huge reparations payments which led to hyperinflation. The Dawes Plan in 1924 reduced payments and loans aided recovery. The Treaty of Locarno stabilized borders but Germany and others still faced economic troubles exacerbated by the Great Depression. Democratic governments in Germany, France, Britain, and the US implemented new policies to address economic issues.

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