Chapter 26 The Futile Search for Stability Europe

Chapter 26 The Futile Search for Stability: Europe Between the Wars 1919 -1939

Search for Security Pres. Wilson realized that many of the treaties resulting from WWI contained provisions that could lead to future conflicts League of Nations weak & only action it could take to halt aggression was economic sanctions U. S. & Britain failed to honor promises to ally w/ France – France left alone & bitter – earlier alliances w/ Russia left Germany w/ threat of 2 front war – Communist Russia hostile now, so France had to find new allies Settled w/ “Little Entente” – Czechoslovakia, Romania, Yugoslavia, & Poland – hoped this would force Germany to maintain the status quo – overlooked the military deficiencies of these allies France settled on a $33 billion in reparations in 1921 – Annual payments of $622, 641, 509 over 53 years – Ger. made 1 st payment in 1921, facing financial troubles could not pay more – French occupied the Ruhr valley (industrial region), Germany exhibited passive resistance (printed paper money w/o solid backing) – 1914 – $1 = 4. 2 German marks, 1923 $1 = 4. 2 trillion marks

Economic depression hitting Germany, self-imposed inflation made situation worse – – – Economic woes encouraged political upheavals Communists staged uprisings in Oct. 1923 a young Adolf Hitler’s Nazis tried to gain control in Munich in Nov. The Hopeful Years (1924 -29) New leadership in GB & France led to better relations w/ German govt. Aug 1924 – Dawes Plan, reparation total reduced & payments made as funds were available – accounted for a $200 million loan to Germany towards rebuilding – also led to heavy American investment in Europe Another sign for hope during this time is coexistence between the West & Soviet Russia – By 1924, soviet hopes for communist revolutions in Western states dissipated – West realized Bolshevik regime & Lenin would not be ousted – Full diplomatic relations established, but each side suspicious of the other

The Great Depression WWI had strengthened business cartels & labor unions – Govt regulation appears necessary to limit their power – Trade barriers, protectionism, & reparations and war debt contributed to a very fragile market in mid-1920’s Causes a downturn in domestic economies – prices of agricultural goods declining from overproduction – increase in use of oil & hydroelectric led to slump in coal industry International financial crisis caused by collapse of American stock market in 1929 – Europe’s prosperity 1924 -29 fueled by American bank loans to Germany – 1928 -1929: American investors began pulling money out of Germany to invest in booming stock market – After stock market crash, Americans pulled even more money out of European investments – The Credit-Anstalt (Vienna’s biggest bank) collapsed May 31, 1931

Unemployment during 1932, 25% of British workers unemployed 40% of German labor force our of work between 1929 -32, industrial production dropped almost 50% in the United States (almost as much as Germany) Women usually able to secure low-paying jobs a servants or maids – Men remained unemployed – Men resented this & were more open to the cries of people promising simple solutions of the economic crisis – Many younger men joined gangs & congregated in public places Governments seemed powerless to deal w/ crisis Dismal economic outlook led to increase in interest in socialism & fascism The Democratic States (p. 755 -56) Great Britain Govt tried unsuccessfully to combat depression Still dismissed work of John Maynard Keyes (p. 755 -56) – condemned the view that depressions should work themselves out – said govt could create demand for jobs by financing public works

France After defeat of Germany, now most powerful country on continent Greatest need – to rebuild devastated parts of France – Planned to use reparation money from Germany – Occupation of Ruhr Valley caused taxes to be raised, increased discontent w/ Nat’l Bloc govt Didn’t feel full effects of the Great Depression until 1932 Increasing demonstrations by right-wing groups caused the left to come together & form Popular Front in 1936 Popular Front made many advances w/ working conditions but did not effectively deal w/ depression – By 1938, decreasing confidence in the govt led France to be unprepared for aggressiveness of Nazi Germany in coming years United States Other than Germany, no country more affected by Great Depression FDR wins presidential election in 1932 – by 1933 – 15 million people out of work – 1 st New Deal (1933) – FDIC established, CCC employed 2 million through public works – 2 nd New Deal (1935) – WPA employed 2 -3 million, established American welfare state Slow progress made, 11 million unemployed by May 1937 Only WWII would serve to bring American workers to full employment

The Authoritarian & Totalitarian States Fascist Italy (p. 759 -762) After WWI, democracies in the U. S. & Great Britain remained strong, but in Italy, Germany, & Russia a form of totalitarianism emerged – totalitarianism – a government aimed at controlling every aspect of citizens’ lives After WWI, Italian nationalists were mad they didn’t receive large pieces of territory from the Central Powers – The government was unable to relieve the discontent of the people, allowing the rise of Benito Mussolini and the Fascist Party in 1919 fascism was a political philosophy advocating three things – glorification of the state – a single party system with one strong ruler – an aggressive form of nationalism

fascism was like communism but it defended private property & a class structure – Blackshirts (Mussolini’s followers) physically attacked political opponents in the streets. Oct. 1922 - Blackshirts marched on Rome – King Victor Emanuel III refused to stop them, Mussolini became prime minister Soon Mussolini established a corporate state & eliminated all non-Fascist parties – corporate state - government represented by industries not political parties Build up of the military solved the unemployment problem & also rekindled feelings of patriotism – He made it clear to all Italians that it was their destiny to revive the Roman Empire

Hitler & Nazi Germany Weimar Germany After German defeat in WWI, a German democratic state known as the Weimar Republic established – Had no outstanding political leaders – Most able leaders died in the 1920’s Military hero & monarchist at heart, Paul von Hindenburg elected President in 1925 – Not in favor of the republic to begin with – Suffered politically from attacks from both left & right Economic blunders of early 1920 s pushed middle class to rightist parties opposing the Republic – Discontent of the late 1920 s & early 1930 s paved the way for Hitler & the Nazi Party’s rise to power

Adolf Hitler (1889 -1945) Son of Austrian customs official Failure in secondary school, made his way to Vienna to become an artist (1908 -13) Vienna is where he formed his outlook on life & race 4 major influences in Vienna – Georg von Schonerer – urged union of all Germans into one nation-state – Karl Luger – head of anti-Semitic Christian Social Party – Lanz von Liebenfields – ideas about superiority of German Aryans & “animal” veiw of the Jewish people – Richard Wagner – true artist is a social outcast that is subject to his own rhythms not society’s 1913 – moved to Munich w/ no real purpose WWI gave him purpose, after war returned to Munich & entered politics

Rise of the Nazis After returning to Munich, Hitler joined the obscure German Workers’ Party (right-wing nationalists) Summer 1921 – Hitler had assumed total control of the party, renamed it National Socialist German Workers’ or Nazi Party – (Nazi comes from first two syllables of the German name) – Thought the name would set his party apart from others Worked hard to develop the party into mass political movement – – – Flags, badges, uniforms, periodicals, & rituals all very important own police force, Sturmabteilung or SA (Storm Troops) SA used to defend the party in meeting halls & break up other party meetings Hitler’s oratorical skills responsible for attacking an increasing # of followers – Low hundreds in 1921, 55, 000 Nazis & 15, 000 SA in 1923 – right wing groups see Weimar govt on verge of collapse – Other leaders renege on agreement, Hitler & Nazis stage uprising alone – Nov. 8 – Called the Munich Beer Hall Putsch, quickly crushed Hitler arrested, put on trial & convicted of treason, got 5 yrs. in prison – result of sympathetic right-wing judges

The Nazi Seizure of Power trial & imprisonment reinforced his faith in himself & his mission occupied himself in prison by writing Mein Kampf (My Struggle) – an account of his movement & his ideology – synthesis of German nationalism, virulent anti-Semitism, anticommunism all linked by social Darwinism – superior nations need Lebensraum (living space) – superior individuals right to secure authoritarian leadership over masses – elaborated on a series of ideas that would guide his hand when in power Hitler’s biggest advantage was that no one took his ideas seriously When Hitler was released in prison, the Nazi party in shambles – Reorganized the party in late ’ 20 s & expanded to all parts of Germany – By 1929, it was a national party organization – Enrollment grew – 1925: 27, 000 1929: 178, 000 – Mostly young & fiercely committed This gave the Nazi party the appearance of a young man’s movement Hitler’s fiery speaking style exited the young followers – The people that joined the party were the wanted beer hall brawls, enthusiasm, & comradeship not democratic debate

1928 – only won 2. 6% of votes focusing on urban workers (12 seats in Reichstag) 1929 – shifted focus to rural middle & lower class people 1930 – won 18% of votes & 107 seats in parliament Great Depression hit hardest in 1931 – Economic & psychological impact made extremist parties w/ radical solutions more attractive By 1930, the Reichstag was totally ineffectual – relied on emergency decrees from President Hindenburg to rule Hitler’s rise from late 1930 to 1933 depended on political maneuvering around Hindenburg – but elections from 1930 -32 indirectly responsible In his campaigns he appealed to worst fears of special interests – Working-class: attacked high finance – Middle-class: played on fears of communist revolt – Denied conflict of interests, claimed to be above classes Jan 30, 1933 – under pressure from right-elites, Hindenburg allows Hitler to become Chancellor & form a new government

The Nazi State (1933 -39) By end 1933, only 2 threats to Hitler’s power: the army & the SA – Some in the SA criticized & spoke of “second revolution” – Hitler had the SA leader (Ernst Rohm) & several officers killed in return for the army’s support in allowing him to succeed Hindenburg after his death Hindenburg died 8/02/34, Hitler abolished presidency & becomes sole ruler of Germany – Plebiscite held 8/15/34. 85% support Hitler’s move, The Third Reich begins He had large ideological goals – Aryan racial state that would dominate Europe / the world for generations Most think of Nazi Germany as all-powerful govt. that maintained absolute control – – – Actually constant personal & institutional conflict Groups always fighting over spheres of influence By fostering conflict, Hitler became ultimate decision maker For those that needed coercion, the SS was created – Originally Hitler’s bodyguard, under direction of Heinrich Himmler, came to control the regular & secret police forces Indoctrination at a young age necessary, Hitler Youth & other groups created

Nazi Party was intended to be an Aryan state Nazi Party reflected anti-Semitic ideas – one in power, didn’t take long to translate into anti-Semitic policies 4/1/33 – Nazi govt. initiated a 2 -day boycott of Jewish businesses Soon followed by laws excluding “non-Aryans” from legal positions, civil service, judgeships, the medical field, teaching positions, entertainment & press 1935 – unleashed a new round of anti-Semitic laws w/ the “Nuremberg Laws” – – excluded German Jews from citizenship forbade marriages & extramarital relations between Jews & Germans separated Jews & Germans socially, socially & legally natural extension of Hitler’s view of a pure Aryan race more violent phase of anti-Jewish activity took place in 1938 & 1939 initiated 11/9 -10/38, Kristallnacht (Night of Shattered Glass) – assassination of a low ranking official by a Polish Jew became excuse for Nazi-led rampage – synagogues burned; over 7, 000 Jewish businesses destroyed; over 100 Jews killed; 30, 000 rounded up & sent to concentration camps – More drastic prohibitions resulted, Jews “encouraged” to emigrate

The Soviet Union The civil war had come to an end in 1921 Enormous cost in life, but Red Terror & Red Army assured survival of Communist regime Lenin had implemented “war communism” – banks, transportation, mines, factories, farms - all nationalized – Govt. had right to requisition food from the people (people often resisted…and failed) Also drought from 1920 -22, hunger caused many deaths Industrial production in 1921 was at 20% of 1913 levels March 1921 – Lenin implements the NEP (New Economic Policy) – – – basically revised version of capitalism peasants could now sell their produce openly businesses under 20 employees operated under private ownership 1922 – Lenin & Communists formally created a new state called the Union of Soviet Socialist Republics (USSR)

NEP revived the economy, by 1923 agricultural output was at 75% of pre -war levels – Industry fared less well than agriculture, but NEP averted economic disaster – For all the good it did, Lenin intended it to be a temporary policy 1922 -24 – Lenin suffered a series of strokes, dying 1/21/24 Politburo divided over direction of the nation – Left – led by Trotsky, wanted to end NEP & continue the revolution – Right – rejected world revolution, wanted to concentrate on building a socialist state Ideological divisions underscored by political rivalry between Trotsky & Joseph Stalin While Trotsky was a prominent, vocal figure in the Party, Stalin was content to hold the station of party general secretary The Politburo made the big decisions about Party policy, but it became very apparent that the general secretary was the most important position in the party – Controlled who got their party cards, appointed regional secretaries – appointments that Stalin made gave him a loyal base of supporters – Trotsky expelled from party in 1927, murdered in Mexico 1940

The Stalinist Era (1929 -1939) Era marked economic, social, & political revolution more sweeping in results than the revolutions of 1917 1928 – announces 1 st five-year plan – – – Aimed to shift USSR from agricultural to industrial power Emphasized capital production not consumer goods 1928 -37: steel prod. Increased 4 to 18 million tons/year, coal output from 36 to 128 million tons To finance this shift govt. cut spending on housing & wages – wages decreased by 43% 1928 -40 – laws passed restricting worker movement – propaganda stressed need to sacrifice for good of the state Stalin’s desire for total control led to purges of Old Bolsheviks 1936 -38: most prominent Bolsheviks put on trial & sentenced to death – Purges of army officers, intellectuals, party members, & many others killed or sent to labor camps in Siberia – 8 million arrested, untold millions murdered or died in camps