Inter-War Period, 1919

Detailed Timeline of European History

World War I (1914-19) << Inter-War Period (1919-39) >> World War II (1939-45)

Inter-War Period (1919 - 1939)
Global Depression and Tensions Preceding World War II

Inter-War Economy & Government for Each Country

Escalation of the War of Turkish Independence (1920): In 1920, the Ottoman government signs treaty with Allies drastically reducing its territory to where it covered only part of modern Turkey, but also giving most of the control of the Ottoman nation over to the Allies. As a condition, the Sultan and his government were allowed to stay in power, but subservient to the Allies. This provokes the Turkish revolutionaries to begin their armed campaign against the Allies and the Ottoman forces still loyal to the sultan. The Greeks also landed in Western Anatolia (Turkey) to assert territorial claims that had been promised by the Allies.

(Timeline Continued Below)

Ireland Gains Independence from the United Kingdom (1922): The Irish War of Independence began in earnest in 1919, just after the end of World War I. The Irish were promised autonomous rule within the United Kingdom before the war began, but this was delayed due to WWI. In 1916, a limited Irish revolt broke out over disappointment in enacting Irish autonomous rule. Most Irish were not sympethetic to the cause, but when the British violently suppressed the revolt, the tide of public opinion swayed the other way. By 1919, independence was favored by the general Irish public, and war broke out. As the movement spread, British rule in Ireland collapsed, and both sides agreed to end fighting and meet at the negotiating table in 1922. The British granted independence, but retained possession of the six northernmost counties of Ireland, since these counties voted in favor of remaining part of the UK. This region of Ireland had always leaned more toward the British culturally and through religion, as the majority were Protestant, as opposed to Catholic, the dominant religion throughout the rest of Ireland.

United Kingdom Grants Independence to Egypt (1922).

Mussolini Rises to Power in Italy (1922): The National Fascist Party, led by Mussolini, takes control of Italy. Socialist sects, inspired by communism in Russia, were causing chaos. As a result, the king, and other influential right-wingers saw fascism as a better alternative. Before rising to power, the National Fascist Party had taken the strongest, most effectual stance against socialist uprisings. Mussolini becomes Prime Minister in what is still a constitutional monarchy, where he shared power with the king.

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Note: Italian Expansionist Designs. Mussolini envisioned an Italian-based empire reminiscent of the Roman Empire. These thinly-veiled plans made neighbors around the Mediterranean Sea nervous and distrustful of Italy, including Yugoslavia and Greece.

End of Russian Civil War - Communists Assume Full Control (1923): The Red Army (Communists) completely secured power in 1923. More than 15,000,000 died, and industry had virtually come to a grinding halt. Starvation and disease were rampant, and the country was essentially in ruins. The new Soviet government implemented communist policies through military force as a significant portion of the population was leery of socialism.

End of the War of Turkish Independence (1923): The Turkish revolutionaries drive the Greeks out of Turkey by 1922. Fighting proves to be difficult for the Allies as well, compelling them to enter into peace negotiations. The Allies recognize the independence of Turkey in the finalized 1923 treaty, and the consequent end of Sultan/Ottoman rule. Also, expanded Turkish borders (representing modern Turkey) are acknowledged compared to the limited territories granted in the 1920 treaty. France retains possession of Syria, and the UK retains possession of Mesopotamia, including Baghdad. This marks the beginning of the modern nation of Turkey.

United Kingdom gains Mesopotamia and Cyprus from Turkey in War of Turkish Independence (1923).

France gains Syria from Turkey in War of Turkish Independence (1923).

Death of Lenin, Rise of Stalin in Soviet Union (1924): Joseph Stalin becomes the new Head of State, rising from position as leader of the Communist Party under Lenin. Stalin would enact policies that would lead to millions of deaths, including confiscation of grain in Ukraine and Turkish portions of USSR. This would result in mass starvation, deportations, political imprisonments and executions (to clean the communist party and society in general of unsupportive elements). The Gulag system (forced labor penal camps) began under Lenin and continued in earnest under Stalin. Millions were sent to these camps, the majority being Soviet citizens before the start of WWII. These were primarily political prisoners, people that were seen as an obstacle to the new communist regime, including Russians, Central Asians (now under Russian control), Belarusians, Ukrainians. Treatment was brutal, as millions were tortured, starved and/or worked to death. On the other hand, Stalin did lead Russia toward becoming an industrial power.

Industrialization and Starvation of Ukraine in USSR (1929): As Russia begins to push forward with industrialization, it targets Ukraine. Russia nationalizes many of the lands, meeting resistance from land owners and peasants. Russia withheld food from large parts of the Ukraine as a response, leading to the starvation of millions of Ukrainians.

Yugoslavia Dictatorship (1929): Kingdom of Serbs, Croats and Slovenes changed from constitutional monarchy to a dictatorship, due to sectarian struggles, changing its name to Kingdom of Yugoslavia. Yugoslavia successfully consolidated all the South Slav nations into a single nation. This included Serbs, Croats, Slovenes, Bosnians, Montenegrins and Macedonians. However, these different nations within a nation could not come to agreement on several key issues, causing the Kingdom to devolve into political chaos and instability, paving the way for the Serb-dominated dictatorship government, which managed to establish order.

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Vatican City Sovereignty (1929): Treaty ratified guaranteeing sovereignty of Vatican City, a walled, Catholic Church-ruled section within Rome.

Further Understanding: Global Depression Causes

1. Adherence to the Gold Standard: Leading up to WWI, many nations abandoned the gold standard in order to manipulate their currencies, allowing them to quickly build up their military. By the end of WWI, many currencies were devalued to almost nothing. To rectify the matter, most nations reverted back to the gold standard to stabilize the value of their currency. However, economies were in ruin, and therefore, consumer demand around the globe fell. Being pegged to the gold standard did not spur spending. It had the opposite effect, causing people to hoard gold and the currencies pegged to it, resulting in a lack of liquidity in the system (credit crunch).
2. World War I: The high loss of life, along with the devastating economic and infrastructural damage inhibited consumer spending (after a temporary post-war boost that proved to be unsustainable). Plus, production capabilities throughout Europe were only a fraction of pre-war levels. Consequently, international commerce slowed to a trickle, causing a ripple effect throughout the world.
3. 1929 Stock Market Crash: Marked a serious downturn in the U.S. economy. Until 1929, Europe was surviving economically in large part due to accessible loans from the U.S. As a result of the crash, the availability of funds from the U.S. dried up, drastically reducing international trade, and therefore grinding local economies to a halt. The 1929 crash was a result of overspeculation, as post-WWI euphoria led investors to overestimate stock and commodity values, and the crash occurred when the bubble finally burst.
4. Deflation: Due to the factors above, consumer spending was weak. When production capacities finally recovered, an excess of goods were manufactured, but with limited demand, prices fell excessively, creating a poor business and wage environment.
5. Capitalism/Liquidity: Due to reasons above, the conditions for investment were poor, resulting in money/gold hoarding. Western nations continued to maintain faith that a pure, free-market economy would eventually result in self-correction. But as the mid 1930s approached, there was no sign of the end. Without government intervention, there was insufficient liquidity in the system. Wthout liquidity, there was a lack of personal and business spending needed to drive a capitalistic economy. Socialistic economies, such as Communist Russia and Nazi Germany were unaffected by the Global Depression, but they depended on slave labor and heavy government subsidies, which proved to be unsustainable over the long term.
6. Interest Rates: The newly-created U.S. Federal Reserve failed to drop interest rates in order to spur lending and investing in a deflationary environment.

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Spanish Civil War (1931-39): As its economy continues to suffer, civil strife and armed conflict arise in Spain as various factions fight over which government to install.

Portugal Dictatorship (1932): Salazar becomes dictator over Portugal, remaining as dictator until 1968.

Hitler Rises to Head of State in Germany (1933): As head of the popular Nazi Party, Hitler becomes Chancellor of Germany, sharing powers with President Hindenburg. When the Parliament building was set ablaze, Hitler convinced the public that it was the doing of the communists, allowing him have them arrested (including cabinet members). This permitted Hitler to pass the Enabling Act (since primary opposition in parliament had been removed), giving Hitler absolute powers. Hindenburg signed off, due to his old age and bad health. Hitler then dissolved all other parties.

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State-Sponsored Persecutions of Jews in Nazi Germany (1933): State-sponsored persecutions (as Nazi Party takes control). Included boycotts of Jewish-owned businesses, and increasing numbers of acts of violence against Jews, in which police rarely intervened or investigated.

Hitler Gains Tighter Control of Power (1934): With the death of Hindenburg, the army finally accepted Hitler’s leadership. Decentralized institutions were disbanded, and everything was controlled centrally. The economy began to improve, so people tolerated the curbing of civil liberties. The SS and Gestapo took thousands of political prisoners, including those not conforming to accepted profile of Nazi government, such as Jews, homosexuals and the handicapped.

British-German Naval Agreement (1935): As it becomes clear that Germany is on the rise again, the UK agrees to increase the allowed limit regulating the size of the German navy, as dictated by the peace agreement ending WWI. Essentially, the UK appeased Germany, knowing it was in no position to enforce any limitations.

Nuremberg Race Laws in Nazi Germany (1935): Jews lose German citizenship status and all civil rights.

Italian-Abyssinian War (1935-36): Italy captures lands in East Africa, causing a rift with the League of Nations (Allies). As a result, economic sanctions were levied against Italy, causing it to seek an alliance with Germany instead.

Nazi-Italian Treaty (1936): Treaty of friendship between Germany and Italy, laying the groundwork for the formation of the Axis Powers (which would also include Japan) a few years later, preceding WWII.

German Annexation of Austria (1938): Hitler annexes Austria, which voted 99% in favor of being absorbed into Germany. This consolidation blatantly violates the peace treaty ending WWI, but the Allies lack the will to prevent it.

Jewish Concentration Camps in Germany (1938): Jews begin to be sent to concentration camps in large numbers.

(Timeline Continued Below)

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End of Global Depression (1939): Capitalistic societies reformed to add socialistic elements, such as welfare and government stimulus programs. Nations began to peg their currency to the dollar to provide more flexibility. The build up to WWII caused a significant increase in government spending, injecting capital/liquidity into the system needed to kick-start economies. Several nations observed the superior performance of socialistic, state-planned economies during the 1930s, and scrapped democratic governments and capitalistic economies in favor of authoritarian governments (including dictatorships) and socialistic economies. Examples include Yugoslavia, Italy, Portugal, Spain and Poland.

Further Understanding:
Communism Outperforms Capitalism During Global Depression

Capitalism failed since it could not spur consumer demand and spread liquidity into the system, as those that held funds were not inclined to spend or invest due to the panic-driven environment. Communist Russia avoided the depression largely due to price controls and guaranteed employment (all basically subsidized by government). Russia's planned economy held no connection to the stock market (no speculations to affect prices of commodities), nor was Russia reliant on exports. Russia nationalized industry, taking over private lands, factories, etc., essentially robbing landowners of wealth for the common good. The system was very bad for landowners, but good for a stable economy – although it mostly sustained a only a meager existence. Communist Russia also exploited millions in forced labor camps (Gulags), providing free labor for the benefit of the public, but at a steep cost in human life and tragedy. Communism would prove to be unsustainable over the long term, but worked during a time when it was widely supported by the public, since it represented an improvement from the instability and warfare experienced during the last few decades of imperial rule, and was better than the Global Depression effects suffered by capitalistic economies world-wide.

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Spain Dictatorship (1939): General Franco becomes dictator over Spain, remaining as dictator until 1975.

Hitler Renounces British-German Naval Agreement (1939): Hitler would renounce the agreement, no longer willing to adhere to any limitations at all per the WWI treaty, as Germany was poised for a renewed conflict.

German Invasion of Czechoslovakia (1939): Germany annexed lands along the northern and western borders from Czechoslovakia (Sudetenland), since there were considerable German populations in these regions. The inability and unwillingness of Czechoslovakia or its supporting European powers to prevent the German annexation of Sudetenland was glaring, giving Nazi Germany the encouragement to invade the remainder of the country in 1939. The southern strip of Czechoslovakia was awarded to Hungary in order to gain their support in potentially renewed warfare.

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Italian Conquest of Albania (1939): After Hitler invades Czechoslovakia, Italy invades and conquers Albania. Italy had become a little distrustful of Germany at this point, perceiving that Germany is operating without Italy 1939 regard to its own interests. It had designs on Albania since it was promised by the Allies during WWI. When Italy witnessed Nazi Germany aggressively taking control of territory it felt entitled to, Italy was instigated to do the same. Relations are patched up between Germany and Italy with the subsequent Pact of Steel, reaffirming their alliance.

Secret Nazi-Soviet Pact (1939): Hitler planned to invade Poland soon, understanding it may very well provoke a hostile response from the Allies. In which case, it negotiated a non-aggression pact with the Soviets in secret, to remove the primary threat to the east. The Soviet Union agreed to enable Germany to invade without intervention. In exchange, Germany recognized Soviet claims over Eastern Poland, and many of the other Eastern European nations lost during WWI, including Estonia, Latvia and Lithuania.

Further Understanding the Inter-War Period

How Germany Rises Again:

1. Not Thoroughly Defeated, Still a Powerful Nation. Germany conceded in WWI even though the front lines of combat were all outside of Germany. It still had most of its war machine intact. Germany still possessed a resource-rich land in a strategically-located section of Europe, including vast industrialization capabilities, large coal deposits to feed industrialization, technological capability, a large & skilled population, and strong military tradition/know-how.
2. National Pride. The peace treaty ending WWI placed Germany in a humiliating position, crippling it economically. Germans had historically viewed itself as a superior people, as the most direct and purest descendants of the forefathers of the "superior" white European race (Aryan Theory). After hitting rock-bottom economically and psychologically, they realized no one was in a position to enforce treaty terms which weighed Germany down, such as limiting industrialization and military build up. By the early 1930s, Germany simply ignored sanctions against it, daring any nation to intervene.
3. Violation of WWI Peace Treaty. After WWI, Germany reached a desperate state, especially economically as the treaty limited its production levels and military capability. Plus, the war reparations (financial compensation) it agreed to were crippling. Germany's strong sense of national pride demanded that it overcome its humiliated state. It realized it was still powerful, and that no other nation was in a position to enforce the terms of the treaty. By the 1930s, it blatantly began violating all the dehabilitating sanctions of the treaty, cranking up its production, building up its military, reneging on war reparations, and even expanding its borders, annexing Austria and Czechoslovakia in 1938.
4. Controlled Economy. While the rest of the capitalistic "western" world was suffering from the effects of the Global Depression, Nazi Germany instituted anti-capitalistic policies to avoid the pain, including price controls and guaranteed employment (subsidized by the government). The government was able to financially support such measures by withholding war debts, forcing slave labor of non-Germans within its borders, manipulating its currency and using up its reserves. This was not sustainable, which was why it proceeded to invade Poland to start WWII, and motivated its advance into several other Eastern European nations during WWII, recognizing its need for increased resources and slave labor to sustain its way of life.
5. Passive Neighbors. As previously mentioned, none of the other European or world powers were in a position to force Germany to adhere to the WWI peace treaty terms. Even the victors of WWI such as the UK and France were weakened by the war, and lacked the will to risk another war by taking a strong stance against Germany.

Spain/Portugal Dictatorships:
Neither Portugal nor Spain are able to recover from the Napoleonic Wars, which devastated both economically, especially with the loss of their respective overseas empires. As a result, both are much more turbulent than other democracies of western and central Europe. This enables dictators to take power in the face of such disarray.

Inter-War Economy & Government for Each Country

Next: World War II (1939 - 1945)

Previous: World War I (1914 - 1919)

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