World War II Research Aid
A Quick Look at the Interwar Era (1924-1929)
Around 1924, each European country had laid down a basis for recovery in the economy. In Britain, Winston Churchill attempted to return life to what it had been before the war, establishing the pound to what it had been before the conflict (in relation to the dollar). But the British economy had suffered, there was still mass unemployment and was now challenged and outpaced by the United States and Japan in the new industrial sector, the traditional industries were inept. Not only was Britain suffering economic dislocation, but dislocation concerning world trade was also acutely felt.
Germany, after the collapse of her currency (1923), had lost most of her middle class and was reliant on foreign loans in order to allow her to rebuild. Through the Dawes Plan of 1924, Germany �rebalanced� her budget. Austria, having been hit by the same inflation problems, returned to normal after foreign loans and League of Nations control over finances. By 1925 economic revival was on its way throughout Europe, most nations being dependant on other European nations. Germany saw the rise of old and new industries, including the Siemens Konzern in electricity, I.G. Farben in chemicals and Wiking Konzern in cement.
France and Belgium were more interested in stabilising their currency and economic recovery than world trade. The also received the largest reparations payments, most European battles having been fought on their soil. In France, the chemical and metallurgical industries had prospered during the war and hydroelectric power had been introduced to replace the coal, of which they had a shortage. France experienced an industrial revolution and rebuilt by 1927, becoming increasingly involved in foreign trade. But the industrial expansion brought France problems, such matters as labour shortages were solved by foreign immigrants, causing tension. France could also not compete in the international market due to her protective policies, keeping prices high. Yet economic recovery was welcomed in Europe. Unemployment, still being a problem, brought about an unemployment insurance in many countries, France did not have to deal with this problem until 1930.
Mussolini had set up a �corporative state� in Italy, old trade unions were shoved out and Fascist unions took their places, ensuring employers that strikes would be illegal. They were supervised by the Ministry of Corporations, this enabled the dictator to control and thereby improve, the national economy. By 1927, the Lira had been stabilised, unfortunately the rate was too high, hindering exports. Italian economic recovery was dependant on the state. Eastern European recovery was dependant on trade and agriculture. But the standard of living remained poorly low, only in the industrial areas (Western Checkoslovakia & sections of Poland), did the standard of living increase. The states on the Danube traded extensively amongst themselves. Germany regained her position of trader in these states, spelling disaster during the economic crisis of the 1930�s, as Germany fell, these areas followed. In Russia, economic recovery did not occur until 1927 (in comparison with 1913). Lenin�s New Economic Policy had its say in this. Only two percent of the total arable land was held by the state (1927), the rest was owned by individual peasant farmers. Agriculture was collectivised in 1929, to be carried out over a period of three years. Famine and local civil war returned under Stalin�s brutal rule, forcing the kulaks from their farms. The Five Year Plan (1928) was implemented and an increase in prosperity was created.
Diplomatic recognition of the USSR and the Soviet regime, by most of Europe, came about when Russia requested loans and technical support for its agriculture. Relations improved, especially between Germany and Russia. Russia even sent representatives to Geneva for various economic and disarmament conferences. Times had changed though and such matters as being able to exchange currency for gold had faded away. Italy and many Eastern European states created the �gold exchange standard�, where the value of gold became interrelated. There was prosperity in the world during the 1920�s. But this wealth remained unevenly distributed and overproduction was still occurring due to lack of demand. This would eventually lead to the crash of 1929.
By 1924, the thought of war and conflict was thrown aside by the general population and pacifist sentiments spread throughout. Most government posts were held by conservatives at that time (e.g. Bonar Law and Stanley Baldwin in Britain). But "[t]he parliamentary governments destined to grapple with the profound economic and social problems of post-war Europe proved, in general, to be uninspiring and disappointing"(1). Deep resentments existed against those who had made a profit due to the war and few understood why governments were busying themselves with economics, gold prices and trade. Many did not understand why they should make sacrifices after the war was over. Governments held office for only short periods of time and this made it increasingly difficult to implement long-term recovery plans. As Labour governments in Britain and Socialists in France moved in and out of office, they failed to implement recovery. In France, Poincar�s conservative government eventually managed to stabilise the Franc. Germany experienced what is called the �Stresemann Era�, where Gustav Stresemann held office from 1923 to 1929. He was undoubtedly a patriot and managed to hold both the Left and the Right together. Yet by 1926 onwards, these three powers experienced a new rise of nationalism.
The 1920�s also witness ed the split of the socialists, the more radical communists moving away. This left the socialists to attain their goals of social reforms through parliament, disassociating themselves from the revolutionaries. Yet in France it weakened the power of the socialists and the working class. Britain experienced a general strike in 1926, the government, fearing civil unrest, sent troops to occupy strategic locations and introduced an emergency transportation system to replace the ones on strike. The strike was called of after nine days (the miners still striked for another six months). In 1927, strikes that would threaten the government and would halt the nation were made illegal. Clashes between conservative and socialist were widespread in Europe as a whole. This can be related to the out-of-date politics in Europe in comparison to rising capitalism, as well as all of the above mentioned causes. In the Soviet Union Stalin was battling against Trotsky for power after the death of Lenin. He managed to convince the fourteenth Party Conference to agree to his idea of �socialism in one country� rather than Trotsky�s �permanent revolution�(2). Stalin would eventually win through his ideas of national pride and the people�s desire for prosperity and general peace. Trotsky and his followers were duly expelled from their positions and Trotsky himself was forced to flee. In Europe, nationalist uprisings placed dictators in power (e.g. Spain, Portugal and Italy).
France held differing views concerning national security and the general security of Europe. Britain and America saw security in terms of disarmament of all nations, while France, not disagreeing with this thesis, could not forget the ease by which Germany had invaded her in 1871 and 1914. She therefore retained her armaments and her troops at the ready and went about signing treaties, surrounding herself with allies. Disagreements therefore existed between France and her allies and the following documents resulted:(1) Draft Treaty of Mutual Assistance (1923), an attempt at disarmament, where the Council of the League would decide, at the outbreak of war, who was the aggressor and then combine forces against it. When the French introduced the idea that absolute security should override disarmament, her allies rejected it. A compromise was attempted during the (2)Geneva Protocol, where disputes would be solved through the Permanent Court of International Justice, arbitration and the Council. France agreed to this, somewhat less pleasing (for them) solution, but Britain remained doubtful. (3) Locarno (1925); here France was searching for British guarantees concerning her borders with Germany. A proposal by the Germans to agree (along with Britain and Belgium) not to wage war for a generation, was rejected by France. It was eventually agreed, by Britain and later Italy, that they would guarantee these borders, including the Belgian border with Germany. And Germany was allowed to join the League (but would find much resentment here). Three sets of Treaties came into existence, one guaranteeing the borders, another arbitrating between Germany and her surrounding states, and a third, treaties of mutual guarantee between France and Poland and Checkoslovakia on the other hand. (4) The Pact of Paris (1928); also known as the Kellog-Briand pact, was signed by fifteen nations (including the major powers with the temporary exception of the USSR), renounced and outlawed war. Eventually some sixty-five nations would sign. Yet a war of self-defence, as a national policy instrument, and could only condemn war. Yet as controls over Germany lapsed and reparations were no longer to be paid after 1929, a new danger in Europe was rising there.
Footnotes:
- Thomson, David. Europe Since Napoleon. London; Penguin, 1990. p. 663.
- ibid. p. 670.
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Copyright World War II Research Aid, 1999.
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