The Origins and the Causes of the First World War - What were the main short-term causes? - Great Depression
7 important questions on The Origins and the Causes of the First World War - What were the main short-term causes? - Great Depression
What was the immediate effect of the Great Depression?
- there was a large-scale withdrawal of American capital from European investment
- both agricultural and industrial goods fell in price
How did the Great Depression aid the rise of Fascism?
- The economic crisis radicalised moderates in many countries, and therefore prepared the ground for Fascism and self-intersted Nationalism in many countries; including Germany, where the Great Depression aided Hitler into power.
- Moreover, appeasement was made more likely as states placed balancing the budgets before international relations; for many the heavy arms expenditure and the cost of another war was unthinkable.
- Finally, the fear of falling into Bolshevism or Fascism; and the domestic affairs of France and Spain meant many governments were particularly fearful about not being able to deal with the effects of the depression.
What was the main effect of the Great Depression on the remaining terms of the Treaty of Versailles/Young Plan?
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What was the Hoover Moratorium and what did it do?
- German representatives approached US President Herbert Hoover; to request a 'moratorium' (suspension) of reparation payments.
- Resultant Hoover Moratorium covered all inter-state debts from mid 1931 to mid-1932.
- However, moratorium designed for only a 'relatively short depression' and in December 1931 it was clear this wasn't the case.
What did the Great Powers decide in December 1932?
- December 1932, the powers involved in Young Plan met in Basle (Swizerland); they decided that all inter-governmental war debts should be abolished
What was the Lausanne Conference?
- Ended by a lump-sum payment of 3,000 million marks
- This was 90% of Germany's outstanding debt.
What the effect of the Lausanne Conference on international relations between the USA and the European Powers?
- the European powers with outstanding war-debts to the USA also demanded their termination
- France, was particularly despised because the French Assembly vetoed the government's proposal to make one final debt repayment to America
This renewed her political isolationism.
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