Conflict arose over boarding nations and especially the Treaty of Versailles. Germany was exceptionally unhappy because this treaty states that they caused the war and had to repay any “damages.” As Germany was unhappy about having to repay, shrinking the size of their armies and territory gain, the United States did not join the League of Nations and their failure to be less involved in European affairs undermined the League’s effectiveness. Also, the League of Nations that was created halted the economic sanctions, which failed to prevent nations from being involved in warfare. France felt embittered and alone with the League of Nations and then the failure of the United States to hold its promise to form a defensive military alliance with France. To make up for this loneliness France joined an alliance with a small network of alliances called Little Entente, which consisted of Czechoslovakia, Romania, and Yugoslavia. These nations helped France to contain Germany, however their militaries had …show more content…
During this time in Germany began to abide by the Treaty of Versailles and fixed their currency problem. To prevent inflation, Germany issued a new form of currency, the Rentenmark. Also, to help with reparations, the Dawes Plan reduced Germany’s reparations and stabilized Germany’s payments. This plan opened the door for heavy American investments in Europe and granted Germany an extra $200 million in loan money for recovery.
After the Great War, Europeans thought that the economy would return to private enterprise and a land free of intervention. Nonetheless, the war strengthened business cartels and trade unions, to the point where they had to be government regulated. As the business cartels and trade unions grew, this dream of success crashed in 1929 when the Great Depression hit. The Great Depression occurred as a result of two major factors: a down turn in domestic economics and an international financial crisis, which was caused by the collapse of the American Stock Market in