The Treaty of Versailles was a peace treaty signed on 28 June 1919. As the most important treaty of World War I, it ended the state of war between Germany and most of the Allied Powers. It was signed in the Palace of Versailles, exactly five years after the assassination of Archduke Franz Ferdinand, which led to the war. The other Central Powers on the German side signed separate treaties. Although the armistice of 11 November 1918 ended the actual fighting, and agreed certain principles and conditions including the payment of reparations, it took six months of Allied negotiations at the Paris Peace Conference to conclude the peace treaty. Germany was not allowed to participate in the negotiations before signing the treaty.
Following their defeat in World War I, the Central Powers agreed to pay war reparations to the Allied Powers. Each defeated power was required to make payments in either cash or kind. Because of the financial situation in Austria, Hungary, and Turkey after the war, few to no reparations were paid and the requirements for reparations were cancelled. Bulgaria, having paid only a fraction of what was required, saw its reparation figure reduced and then cancelled. Historians have recognized the German requirement to pay reparations as the "chief battleground of the post-war era" and "the focus of the power struggle between France and Germany over whether the Versailles Treaty was to be enforced or revised."
The Bank for International Settlements (BIS) is an international financial institution which is owned by member central banks. Its primary goal is to foster international monetary and financial cooperation while serving as a bank for central banks. With its establishment in 1930 it is the oldest international financial institution. Its initial purpose was to oversee the settlement of World War I war reparations.
The Paris Peace Conference was a set of formal and informal diplomatic meetings in 1919 and 1920 after the end of World War I, in which the victorious Allies set the peace terms for the defeated Central Powers. Dominated by the leaders of Britain, France, the United States and Italy, the conference resulted in five treaties that rearranged the maps of Europe and parts of Asia, Africa and the Pacific Islands, and also imposed financial penalties. Germany, Austria-Hungary, Turkey and the other losing nations were not given a voice in the deliberations; this later gave rise to political resentments that lasted for decades. The arrangements made by this conference are considered one of the great watersheds of 20th-century geopolitical history.
War reparations are compensation payments made after a war by one side to the other. They are intended to cover damage or injury inflicted during a war. War reparations can take the form of hard currency, precious metals, natural resources, industrial assets, or intellectual properties. Loss of territory in a peace settlement is usually considered to be distinct from war reparations.
Events in the year 1921 in Germany.
The Dawes Plan temporarily resolved the issue of the reparations that Germany owed to the Allies of World War I. Enacted in 1924, it ended the crisis in European diplomacy that occurred after French and Belgian troops occupied the Ruhr in response to Germany's failure to meet its reparations obligations.
The Young Plan was a 1929 attempt to settle issues surrounding the World War I reparations obligations that Germany owed under the terms of Treaty of Versailles. Developed to replace the 1924 Dawes Plan, the Young Plan was negotiated in Paris from February to June 1929 by a committee of international financial experts under the leadership of American businessman and economist Owen D. Young. Representatives of the affected governments then finalised and approved the plan at The Hague conference of 1929/30. Reparations were set at 36 billion Reichsmarks payable through 1988. Including interest, the total came to 112 billion Reichsmarks. The average annual payment was approximately two billion Reichsmarks. The plan came into effect on 17 May 1930, retroactive to 1 September 1929.
Article 231, often known as the "War Guilt" clause, was the opening article of the reparations section of the Treaty of Versailles, which ended the First World War between the German Empire and the Allied and Associated Powers. The article did not use the word guilt but it served as a legal basis under which Germany was to pay reparations for damages caused during the war.
The occupation of the Ruhr was the period from 11 January 1923 to 25 August 1925 when French and Belgian troops occupied the Ruhr region of Weimar Republic Germany.
The Economic Consequences of the Peace (1919) is a book written and published by the British economist John Maynard Keynes. After the First World War, Keynes attended the Paris Peace Conference of 1919 as a delegate of the British Treasury. At the conference as a representative of the British Treasury and deputy to the Chancellor of the Exchequer on the Supreme Economic Council, but became ill and on his return found that there was 'no hope' of an economically sustainable settlement, and so resigned. In this book, he presents his arguments for a much less onerous treaty for a wider readership, not just for the sake of German civilians but for the sake of the economic well-being of all of Europe and beyond, including the Allied Powers, which in his view the Treaty of Versailles and its associated treaties endangered.
The Lausanne Conference of 1932, held from 16 June to 9 July 1932 in Lausanne, Switzerland, was a meeting of representatives from the United Kingdom, France, Italy, Belgium, Japan and Germany that resulted in an agreement to lower Germany's World War I reparations obligations as imposed by the Treaty of Versailles and the 1929 Young Plan. The reduction of approximately 90 per cent was made as a result of the difficult economic circumstances during the Great Depression. The Lausanne Treaty never came into effect because it was dependent on an agreement with the United States on the repayment of the loans it had made to the Allied powers during World War I, and that agreement was never reached. The Lausanne Conference marked the de facto end of Germany's reparations payments until after World War II.
There was a period of revolutions and interventions in Hungary between 1918 and 1920. The First Hungarian Republic was founded from the ruins of the Austro-Hungarian Empire by Mihály Károlyi during the Aster Revolution in 1918, at the end of World War I. In March 1919, the republic was overturned by another revolution, and the Hungarian Soviet Republic was created. Unresolved conflicts led to wars between Hungary and its neighbor states in 1919. The Hungarian Soviet Republic ceased to exist after the Romanian occupation. The 1920 Treaty of Trianon in Versailles created the Kingdom of Hungary.
The Spa Conference was a meeting between the Supreme War Council and the government of the Weimar Republic in Spa, Belgium on 5–16 July 1920. The main topics were German disarmament, coal shipments to the Allies and war reparations.
Seymour Parker Gilbert was an American lawyer, banker, politician and diplomat. He is chiefly known for being Agent General for Reparations to Germany, from October 1924 to May 1930. Afterwards, in 1931, he became an associate at J. P. Morgan.
The Occupation of the Rhineland placed the region of Germany west of the Rhine river and four bridgeheads to its east under the control of the victorious Allies of World War I from 1 December 1918 until 30 June 1930. The occupation was imposed and regulated by articles in the Armistice of 11 November 1918, the Treaty of Versailles and the parallel agreement on the Rhineland occupation signed at the same time as the Versailles Treaty. The Rhineland was demilitarised, as was an area stretching fifty kilometres east of the Rhine, and put under the control of the Inter-Allied Rhineland High Commission, which was led by a French commissioner and had one member each from Belgium, Great Britain and the United States. The purpose of the occupation was to give France and Belgium security against any future German attack and serve as a guarantee for Germany's reparations obligations. After Germany fell behind on its payments in 1922, the occupation was expanded to include the industrial Ruhr valley from 1923 to 1925.
After World War II, both the Federal Republic and Democratic Republic of Germany were obliged to pay war reparations to the Allied governments, according to the Potsdam Conference. Other Axis nations were obliged to pay war reparations according to the Paris Peace Treaties, 1947. Austria was not included in any of these treaties.
The Hague conference on reparations of 1929-30 was an international conference on World War I reparations that reviewed and adopted the Young Plan, the final attempt during the Weimar Republic to settle the reparations issue. The conference was held in The Hague, Netherlands in two parts, from 6 to 31 August 1929 and from 3 to 31 January 1930.
Pierre Achille Louis Eugène Quesnay was a French economist and central bank official. From 1930 to 1937, he was the first General Manager of the Bank for International Settlements in Basel, Switzerland, the world's first international financial institution.
The Reich Ministry for Reconstruction was a cabinet-level ministry during the early years of the Weimar Republic. Its central task was to implement the economic reparations required of Germany by the Treaty of Versailles. The ministry was established by a decree of President Friedrich Ebert on 7 November 1919 and dissolved by another decree that he issued on 24 May 1924.
