y started on the $5,000,000,000, already a very daunting task for the nation.The economic strain put on Germany was probably the single most important factor in increasing hostility of the Germans towards Britain and France. Then the reparations committee finally met and determined that Germany should pay another $25,000,000,000, plus other costs, bringing the total up to $32,500,000,000 to be paid by 1963! (3) This demand, however, was ridiculous. Germany had hardly enough money to pay the entire original fee. This demand would crush the German economy, and many experts predicted it could even cause the starvation of the German people. Not only were Britain and France overly vindictive in assessing these reparations, but they were also short-sighted in thinking they would derive anything beneficial out of it. Basically, Britain and France demanded all of Germany's money, yet they also took away all territory from Germany that could produce this money. By taking away Germany's colonies, they, in effect, eliminated all of Germany's investments and assets in their Colonial power. Future income and industry generated from these colonies would not be there for Germany. With German industry completely destroyed, there was no practical way for them to pay Britain and France.Germany realized that there was no way they could pay the reparations if their industrial territories, such as the Saar Basin, and their colonies were taken away. Unfortunately, the Allies did not see this. With numerous counter-proposals denied, Germany's only other option was to resort to printing more money. This would cause massive inflation, further devastating the German economy. In 1918, there were seven German Marks to the United States Dollar. In 1923, 4,210,500,000,000 Marks equaled the dollar! (8) Germany's last economic resort had been disastrous.German aggression was greatly aroused by the ridiculous and often mistaken territorial adjustments made by Britain a...
