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This bill (33 billion dollars) for war reparations had the immediate effect of causing ruinous inflation in Germany. The German currency, the mark, slipped drastically in value. It had been four marks to the U.S. dollar until the war reparations were announced. Then it became 75 to the dollar and in 1922 sank to 400 to the dollar...
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dollar until the war reparations were announced. Then it became 75 to the dollar and in 1922 sank to 400 to the dollar. The German government asked for a postponement of payments. The French refused. The Germans defied them by defaulting on their payments. In response to this, in January 1923, the French Army occupied the industrial part of Germany known as the Ruhr...
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