USA HISTORY

AMERICAN IMPERIALISM(1890 1919)

TREATY OF VERSAILLES

[SOURCES]
The Treaty of Versailles ending World War I had what major impact on the economy of Europe?

(A) Strong trade relationships set up in the treaty allowed nations to help each other.

(B) ** The terms of the treaty resulted in conditions that led to a global depression.

(C) The industrial growth mandated by the treaty helped create jobs in European nations.

(D) New nations created by the treaty were rich in natural resources that were needed for economic growth.

EXPLANATIONS BELOW

Concept note-1: -Due to the Versailles treaty, Germany was forced to pay incredibly sizeable reparations to France and Great Britain. In addition, the Versailles treaty, which many agreed was far too harsh, forced Germany to give up thirteen percent of its land. At first Germany tried to recover from the war by way of social spending.

Concept note-2: -This provision effectively prevented many German industries from selling their goods in foreign markets. In order to pay its debts for World War I, as dictated by the Versailles Treaty, Germany engaged in a tremendous hyperinflation of its currency, printing paper marks until, by 1923, they became utterly worthless.

Concept note-3: -The Treaty of Versailles is one of the most controversial armistice treaties in history. The treaty’s so-called “war guilt” clause forced Germany and other Central Powers to take all the blame for World War I. This meant a loss of territories, reduction in military forces, and reparation payments to Allied powers.

Concept note-4: -The treaty forced Germany to disarm, to make territorial concessions, and to pay reparations to the Allied powers in the staggering amount of $5 billion.