The Great Depression, the New Deal, and Stalin’s Five-Year Plans

Age of Total War

Fall 2003

The French Search for Security

       Without the U.S.A joining the League.

       The French sought a remedy.

       The French could not count on Britain.

       Because the British wanted to forget what had happened during the war.

       The French sought a remedy for there security needs.

       The Rhineland Pledge was no longer a reality.

Looking to the Covenant

       The French looked to the Covenant for answers.

       They found Article X where members were to respect  and preserve member states.

       Article XI that noted that any war or threat of war was of grave concern to the whole League.

       Then there was Article XVI which noted the members can use economic, economic, and military means to respond to aggression.

Turing to the League

      The French sought two approaches to strengthen the League of Nations.

      The first remedy was the Draft Treaty of Mutual Assistance.

      This was proposed in 1923 and called for the League to come member state who was a victim of aggression.

      However the League Council had to make that declaration.

      Then they would come to the victims aid.

The Second Proposal

      The second proposal was the Geneva Protocol of 1924.

      Proposed that all international disputes were to be submitted to either the International Court or to League Council.

      If a state refused, it was considered an act of aggression.

      Other members…who were in the region…were to come to the victim’s aid.

      But was this good enough?

Impact of the French Efforts

       The Geneva Protocol received wide appeal in the League.

       But would not receive any support from the British Dominions and the British government.

       The Charles Evans Hughes was concerned the USA could find itself at war with a League member.

       And the British did not want to be involved in a war in Eastern Europe.

Guilt Sets in

       Lloyd George may have felt guilty with his role in the Paris Peace Conf.

       He convinced it was in France’s best interest to lighten the burden on the Germans.

       Lloyd George proposed a meeting in Spa to address the Reparations issue.

       Feelings were too hard to address those issues.

The Rapallo Agreement

       Lloyd George tried again at Genoa in 1922.

       The Germans were invited.

       So were the Russians.

       But instead of resolving the pressing issues…the German delegation under Rathenau ran off with the Soviets.

       And signed the Rapallo Treaty.

       The British were determined that something had to be done to keep German out of the Soviet orbit.

The French Reaction

       The following year…the French occupied the Ruhr.

       This was the dream of Raymond Poincare.

       Seeking to punish Germany.

       When the Reparations Commission said Germany was out of compliance he acted.

       Hating them with a passion.

       Desiring to make them weak.

       Forcing the Germans into the passive resistance.

The Failure of the French Occupation

      While Poincare thought he was securing France.

      His bold action had the opposite effect.

      Allowing Hitler to make his bid for power.

      Weakening German democracy.

      Something had to be done.

The Dawes Plan

       The Western Powers had to do something from allowing chaos to reign in Germany.

       In 1923-24, an international commission was formed under Charles Dawes was formed.

       The goal was to work out a long-term schedule for Germany to pay their reparations payments.

       Which eased the German economic situation.

Reparation Schedule Under The Dawes Plan

      Commission consisted of delegates, two from each of the following countries…Belgium, France, Great Britain, Italy, and the U.S.

      Set the reparations for the first year at 1 billion marks.

      Then after four years rise to 2.5 billion.

      The plan would go into effect in 1924.

      Allowing the French to leave the Ruhr.

      This schedule continued until 1929.

      The German economy revived.

Locarno

       Stresemann notified the British in the interest of general peace.

       Germany was willing to recognize the permanence of Germany’s borders in the West.

       The key negotiators were Sir Austen Chamberlain (GB), Aristide Briand (Fr), and Stresemann would meet in Locarno in Switzerland.

The Kellogg-Briand Pact (1928)

       Negotiated by Secretary of State Frank Kellogg and Aristide Briand.

       The Kellogg-Briand Pact declared war was no longer and instrument of foreign policy.

       Fifteen nations signed the agreement.

       While it did not play an important part in ending war.

       It create a new climate for Europe.

 The Locarno Treaties (1925)

      The were a series of agreements and treaties.

      Germany, Belgium, and France agreed to respect their common borders.

      They also agreed to foreswear the use of force or war against each other.

      Except in the case of self-defense.

      Britain and Italy agreed to guarantee the agreements.

Postwar Problems

       Britain’s foreign trade was ruined by the war.

       Britain lost their overseas markets to the new guy on the block…the U.S.A.

       If that was bad enough…their dependencies didn’t need British goods either.

       The backbone of British industry, the Coal business, was outdated and could not compete with foreign competition.

Lloyd George Responds

       Lloyd George tried to use tariffs to protect British industry.

       Increased funding to national insurance funds.

       Better known as the “dole.”

       British businesses rather than modernize only sought to take government subsidies.

       People were losing hope…in some ways like the lost generation at the front.

Domestic Politics

       Lloyd George was a great wartime PM – in league with Pitt and Churchill.

       But the Welsh Wizard how had no answer to for the economic situation in Britain.

       And neither did anyone else.

       As a result of the situation in Turkey in 1922 and the Conservative victory…Lloyd George was out…Andrew Bonar Law was in.

Here Comes Stanley Baldwin

       Baldwin would PM on and off throughout the 1920s and 1930s.

       Baldwin has faults…but the public loved him.

       Lloyd George said of Baldwin: “He was honest to the point of simplicity.”

       As Chancellor of the Exchequer…he agreed to pay off his American debt…which could have better negotiated.

Coming of Labour

       In the elections of 1923, Labor held 192 seats in Parliament, the Tories had 258, and the Liberals had 158.

       Labour than reached an agreement with the Liberals to form a coalition gov.

       The new PM was Ramsey MacDonald in 1924.

       Who was fixed on the aristocracy, had little sympathy for labor organizations.

       Why did he hold power so long in the Labour Party?

 Why did MacDonald Maintain Control of Labour?

       MacDonald acted and sounded like a great man.

       He managed to manipulate the rival factions in the Labour party to his advantage.

       He had a unique oratorical style…more like a sermon.

       But was driven from power as a result of charges of Labour being pro-Bolshevik.

The Zinoviev Letter

      In October 1924, the British Foreign Office came across a letter of Zinoviev to the head of the CPGB.

      Zinoviev was the chief of the COMINTERN.

      The letter called for additional party agitation on the part of the CPGB.

      It was published in the British press…leading to the return of the Conservatives.

Return of the Conservatives

      Baldwin returned as PM in 1925.

      The new Chancellor of the Exchequer was Winston Churchill…who accelerated the return to the gold standard.

      To the detriment of the British industry.

      Rising the price of the pound sterling and further reducing British exports.

The Origins of the General Strike

       The Coal industry was particularly hard hit.

       Coal operators wanted to reduce wages and previous labor agreements.

       The Miners Federation refused to negotiate with the owners until the owners agreements were removed from the table.

       The General Council of Trade Unions threatened a board work action in July 1925.

Baldwin Moves Quickly

       Baldwin persuaded the operators to postpone their impending changes.

       And accept a royal commission.

       Likewise the government would continue to their financial aid to the industry.

       The commission recommended closing mines and ending the aid to the coal operators.

       The Unions had enough.

The Strike Was On!

       The TUC felt it was important to maintain labor support.

       Churchill and his rag…the British Gazette…maintained public opposition to the strike.

       Labor unions misread British public opinion.

       One-sixth of all workers were involved.

       But they had no public support.

Defeat of the Strike

      The public was fearful following the Russian Revolution.

      The public was glad that there was not major uprising.

      No violence either.

      It also lowered class violence and antagonisms too.

      Some elements of Marxism and Syndicalism were discredited especially those which advocated the inevitability of class conflict.

      General strikes were out…so was talk of revolution.

Postwar Recovery

       France quickly recovered from the physical damage of the war.

       There was even an economic recovery something that did not happen in Britain.

       But there were serious problems – social problems in France.

       Problems that did not die since 1870-71.

       What was the legacy of the war?

French Loses in the Great War

       The French lost somewhere around four million men.

       1.3 million killed/120,000 horribly disfigured.

       The material damage exceeded Belgium, Poland, Russia, Austria, Italy, and Germany combined.

       This is seen by the horrific battles were fought at Verdun and the Somme.

       As well as the destruction of the Northern France.

Rebuilding France

       The Third Republic threw all of its efforts to rebuild.

       800,000 homes and farm buildings.

       Rebuild 600 miles of railroad tracks destroyed by the Germans.

       Dredging canals too.

       Restoring farm land to cultivation.

       Considered to be the greatest achievement in Europe by 1926.

Surpassing the Competition

      How did this happen?

      The French had to purchase new equipment to replace the damaged textile/steel equipment.

      As a result France surpassed her neighbors.

      Especially with the restoration of Alsace-Lorraine gave France access to one of the major iron ore fields in the world.

      Plus there was an upsurge in demand for French wines and other French goods.

French Financial Problems

       One of the problems was to pay for the recovery.

       The French were already in debt before the war.

       Now the French public did not want to pay their taxes either.

       And French politicians were not bold enough to raise taxes either.

       By 1918, France had a debt of 150 Billion Francs…and that would increase with the recovery.

       Who was going to pay?

Finding a Solution

       The French economy was going into a tailspin.

       Then came Raymond Poincare in 1926.

       He raised taxes.

       Borrowed from the Bank of France.

       Instituted reforms that saved France from bankruptcy.

       France returned to the Gold Standard.

       Yet the middle class was hurt.

Impact of Poincare’s Reforms

       Agriculture and Business flourished.

       Tourists flocked to the Cote d’Azur.

       Party life in the Paris.

       Enemy of the Third Republic had no grievances to use against their opponents.

       Yet there were enemies.

       On the Right were the Action Francaise.

 

Enemies on the Left

       The Communist Party in France was born in 1920.

       It grew out of the split with the United Socialists.

       Then there was the split with in the Confederation Generale du Travail in 1922.

       The Communists created the Conferderation General du Travail Unitaire.

       But did not present a challenge to Third Republic in the 1920s.

The French Colonial Empire

       The French Empire spanned the globe like the British Empire.

       Since over 2 million colonial troops served in World War I, many colonials thought this was the start of new relationship.

       Creating a new economic community which was mutually independent.

       But this would not happen.

The Showcase Was Algeria

       Was a French colony since 1830.

       Sent ten delegates to the French Chamber of Deputies.

       In 1919, Algerians were offered both citizenship and limited government.

       It seemed this was going to work.

       But also worked in Tunisia.

       But did not work in Morocco.

The Riff War

       The Spanish thought they could extend their control over the Rif tribes.

       The able Rif chieftain, Abd el-Krim crushed the Spanish.

        For five years the war continued.

       Then spilled over into French Morocco in 1925.

       For two years…the fighting continued until the Rif was suppressed in 1926.

Other Problems in Arab Lands

       There was a wave of Arab nationalism…as great in Syria as there was in Iraq.

       The French were unable to stop the Arab nationalists.

       Riots broke out in Damascus.

       Soon the French had to send troops into the Druses zone.

       Near Lebanon.

       Was not crushed until 1927.

       Then there were other problems too – in Indochina as well.

France and the Depression

       Initially Poincare’s reforms saved France from the pain of the Wall Street Crash.

       But that would only last for so long.

       Then there was the cut in the tourist trade, the cut in luxury goods.

       Economic nationalism.

       By 1932, France was in dire straits like everyone else.

Hitting the Bottom

       The Elections of 1932 brought the Radical Socialists to power.

       As well as the United Socialists under Leon Blum.

       Their solution was nationalization of key industries and taxing the rich.

       The Radicals represented the small businessmen.

       Who stressed economy in governmental operations.

The Expansion of Republic’s Enemies

       Communism grew rather quickly.

       As did the enemies on the Left.

       There was the Action Francaise.

       As well as Camelots du Roi, gangs of young thugs.

       Then Croix de Feu, an organization of Veterans.

       Then the Jeunesses Patriotes.

       But much like Mussolini’s Black Shirts or Hitler’s SA.

       Much like Oswald Mosely’s British Union of Fascists.

Why did Fascism Gain Strength in France?

       The inability of the French Chamber of Deputies to solve the Depression.

       Then there was the vigor in Nazi Germany.

       Support given by French big business.

       The fear of the Nationalizing the banks and key industries.

       The corruption of the government as seen in the Stavisky Affair.

The Stavisky Affair

       A con man, Serge Stavisky was involved in a series of stock manipulations that involved key government officials in Dec. 1933.

        He was discovered by the police and was either killed by the police or he committed suicide.

       Riots broke out in Paris on Feb. 6-7. 1934, claiming the Stavisky was murdered to protect government officials.

The Decline of the Republic

       Emergency governments ran France between 1934-36.

       Some French officials – Pierre Laval and Philippe Petain – had no respect for the government.

       The French were not willing to undertake a massive arms build up to match Hitler and Mussolini.

       The Fascist parties grew too.

       As did the Communists.

The Coming of Leon Blum

       Blum creates a Popular Front Government.

       But faces a wave of sit-down strikes.

       Flight of gold from France.

       Blum sought to introduce the 40 hour week; establishing collective bargaining; and introduce paid vacations.

       Communists did not think he was vigorous enough to the Fascists.

The Spanish Civil War & The Fear of War

       With the coming of the Spanish Civil War (1936).

       There was also a wave of articles warning of the dangers of modern war.

       If war came – the Right argued – only Stalin would gain.

       Plus war was too destructive.

       France could no longer pay that price.

       The situation was too dangerous.

       The Republic was doomed.

The American Economy in Trouble

       Following the economic down turn of 1919-20, many Americans never thought there would be another economic crisis.

       This was a result of the growth during the 1920s.

       The felling was that Americans had entered a new phase of economic growth.

       This accelerated a series of “get- rich-quick schemes.”

Get-Rich-Quick Schemes

       One was the Florida Land Boom.

       Made possible by a the Coolidge prosperity and and the Henry Ford’s Model Ts.

       The Van Sweringen Brothers Railroad empire.

       As well as Samuel Insull.

       And other who developed holding companies, trust companies…all designed to generate funds…but little else.

The Insull Empire

       He became the secretary to Thomas Edison.

       Then vice president of Edison’s General Electric.

       J.P Morgan sent him west in 1892 to take over the struggling Chicago Edison Company.

       He then established the Edison Commonwealth Company.

       He then established a holding company to run all of his power companies.

Midland Utilities Company

      In 1912, Insull formed the Middle West Utilities Co., a holding company which eventually acquired several electric railways and utilities in Indiana.

      In 1924, the holding company became Midland Utilities Co

      In 1929 became Midland United Co.

      In addition, Insull continued to control Commonwealth Edison, and acquired three electric railways operating in Chicago and northern Illinois

The Stock Market

       Following the collapse of the Florida Land Boom.

       The smart money returned to the Stock Market.

       Stocks soared on rumors.

       Mellon’s tax breaks found their way to the Street.

       No checks on stock purchases.

       Which were done on margin…10% down.

       If buyer could not make his margin loans…he was out of luck.

Warning Signs

       Home construction and car sales were catching up to demand.

       Business inventories were on the upsurge.

       Consumer spending slowed.

       Most economic gauges were in marked decline by mid-1929.

       Conservative financiers warned that something was in the offing.

       And so did Hoover.

Advice from Charles “Sunshine Charlie” Mitchell

   “I know of nothing fundamentally wrong with the stock market or the underlying business and credit structure.”

What Caused The Crash?

       The Crash on Oct. 29, 1929, started the Depression.

       Historical forces contributed to the crash – the Market rose 597% over the past 8 years [1921-29].

       US Banking Policies.

       Benjamin Strong’s decision to support Montague Norman, Gov. of the Bank of England, to restore the Gold Standard (1925).

       U.S. Governmental polices.

What Made the Depression So Severe?

            The over-stimulated economy of the 1920s.

            The draconian monetary policy pursued by the Federal Reserve Bank from 1930-1933.

            The sudden rise of global protectionism leading to the collapse of world trade. The dramatic rise of income taxes in 1932 may have also prolonged the downturn.

Andrew Mellon’s Recommendations

       Mellon’s response was very simple.

       “Liquidate labor, liquidate stocks, liquidate farmers, liquidate real estate.”

       Doing so “would purge the rottenness out of the system.”

       Hoover could not go that far.

       But still he was limited by the prevailing hardened view of a government’s responsibility to the public.

What The Country Needs Now…

       Is confidence.

       Hoover made efforts at public construction, but local/state governments more than offset that trend with cutbacks.

       The Fed returned to an easier credit policy.

       The Hawley-Smoot Tariff initially designed to help farmers, had the reverse effect.

 

The Protests

       Farmers stopped foreclosures.

       Farmers burned corn.

       Dairy farmers dumped milk.

       World War I vets organized the BEF and marched on Washington.

       What they wanted was the immediate payment of their World War I bonus.

       They set up a Hooverville in Anacostia Flats.

       Kept Communists out.

Hoover Sends MacArthur/FDR Sends His Wife

       Hoover had Congress appropriate funds for rail tickets home.

       But on July 28, 1932, Sec of War Patrick J. Hurley gave the order to move them out.

       MacArthur had 700 men and with Dwight Eisenhower and George Patton with him.

       The mood of the nation was somber…there was crisis in the air.

       What would happen if Hoover was re-elect.

FDR Comes to the Rescue

       The Country was in the doldrums.

       Something had to be done.

       The Depression was forcing Americans to lose hope.

       Soup kitchens were opened in American cities.

       The homeless slept in Hoovervilles.

       Farmers were angry.

       Communism grew.

Who’s Franklin D…

       Child of privilege and born in 1882.

       Educated at Groton, Harvard, and Columbia.

       Was handsome…very handsome.

       Wanted to be like cousin Teddy.

       Married Eleanor.

       Served as Assistant SecNav.

       Caught Polio.

       Ran for governor of NY in 1928.

The First Hundred Days

       Closed the Banks.

       Created the FDIC.

       Established the Home Owner’s Loan Corporation.

       Securities and Exchange Commission.

       Civil Works Administration.

       Public Works Administration.

       Federal Emergence Relief Administration.

       Civilian Conservation Corps.

       WPA.

       NRA

       AAA

       More important he did something.

How Precarious?

       The Communist Party in the U.S. grew as a result of the Depression.

       So did other extremist groups on the Far Right.

       Including the German American Bund.

       Also William Dudley Pelley’s Silver Shirts.

       Which had about 15,000 members in 1934.

       As a result HUAC was born.

Thunder on the Left

       There were people who did not think that FDR went far enough.

       One was the King Fish, better known as Huey Long of Louisiana.

       Who came up with “The Share the Wealth” program.

       Another was Francis E.Townsed, who developed the Townsed Plan.

       Who promised all the elderly a pension of $200 a month for all over 60.

       Then there was Father Charles E. Coughlin and the National Union for Social Justice.

At the End of 1929

       The Chancellor of Germany was the Social Democrat Hermann Mueller.

       But the Depression destroyed the internal cohesion of the Mueller’s government.

       The issue was should the government provide additional aid to the unemployed.

       The People’s Party was apposed to additional outlays.

       Mueller’s government collapsed.

Wilhelm Groener’s Concerns

       After the Ebert-Groener Agreement, he served the Republic loyally.

       Now he was Defense Minister.

       He feared that the government could not solve the issues confronting the government.

       He discussed this with his trusted aid, Gen. Kurt von Schleicher.

       The goal was to create a government not hampered by parochial party views.

       Goerner’s choice for Chancellor was Heinrich Bruening.

       A former captain during the war.

Bruening’s Recommendations

       He had considerable energy and courage.

       Yet he was arrogant and easily made enemies.

       To solve the depression he followed a deflationary program and governmental entrenchment.

       When stumbling blocks happened.

       He appealed to Hindenburg to rule under Article 48.

The Reichstag’s Response

       They voted no confidence in Bruening.

       Bruening then dissolved the Reichstag.

       And ordered new elections.

       Despite warnings that elections during those difficult times only aided the extremist parties on both the Right and Left.

       Which only proved to be only too true.

The Growth of the Nazis

       The NSDAP grew as a result of the Depression.

       As unemployment rose so did support for the Nazis.

       During the Depression, Joseph Goebbels launched a massive campaign to explain Hitler’s program.

       Which attacked the “November Criminals,” the Treaty of Versailles, Marxism, the Weimar Republic, and the Jews.

Bruening’s Efforts

       Bruening’s effort to effectively govern became increasingly more difficult.

       Soon he was being called the Hunger Chancellor.

       Bruening attempted to cut a deal which would have deflated the right by seeking modifications of Versailles.

       Equality of armaments and ending reparations.

       Britain agreed, but not France and Italy.

       And a union with Austria.

Bruening’s Problems

       The Nazis conducted planned acts of violence in terror throughout Germany.

       Hindenburg’s term expired in 1932.

       Should the old man run again for another term?

       Bruening wanted to avoid the turmoil of another election…but not Hitler.

       The elections were held.

 

The 1932 Elections

       In the First round the main candidates were:

       Hindenburg -- 49.6%.

       Duesterburg – 6.8%

       Hitler – 30.1%

       Thaelmann – 13.2%

       In the Second Round it was a contest between Hitler and Hindenburg.

       Hindenburg – 53%

       Hitler – 36.8%

       Thaelmann – 10.2%

Bruening’s Undoing

       Bruening suppressed the SA.

       To Schleicher, Bruening was nothing more than a tool of the Socialists.

       Using his influence with Hindenburg’s son, Oskar, Schleicher found a new candidate.

       Fritz von Papen, a real dandy, but one that Hindenburg liked.

       Schleicher cut a deal with Hilter to support Papen in return for lifting the ban on the SA.

Schleicher and Papen Weaken the Republic

       Using a pretext of violence in Altona, near Hamburg.

       Schleicher had Papen use Hindenburg’s emergency powers to dismiss the Socialist government in Prussia on July 20, 1932.

       The last bulwark against the Nazis was broken.

       What’s can happen next?

       Papen now thought the only method of rule was outside the constitution.

       Then Schleicher decided he had to act.

Schleicher Intervened

       Schleicher believed that if Papen’s plan went into action.

       It would lead to civil war.

       The Reichswehr could not defend German’s border.

       As well maintain order in Germany.

       In his view…von Papen had to go.

       And he would be von Papen’s replacement.

Schleicher Moves

       Hindenburg appoints Schleicher Chancellor in Dec. 1932.

       In the Nov. 1932 Elections, the Nazi strength was diminished.

       Schleicher than tried to reach out to Gregor Strasser, a leftwing Nazi.

       By promising Strasser a post in his cabinet.

       Hitler refused.

Von Papen’s Plots

       Hindenburg liked von Papen.

       So von Papen used his relationship with Oskar to topple Schleicher.

       Papen used his position to help Hitler through his financial problems.

       Schleicher probably feared a second von Papen Chancellorship.

       Von Papen believed that Hitler, if surrounded by Conservatives could be controlled.

The Hitler Chancellorship

       Von Papen assured Hindenburg that Hitler could be controlled.

       This was done on Jan. 30, 1933.

       Hitler would be Chancellor.

       Von Papen Vice Chancellor.

       Alfred Hugenburg as Minister of Economics.

       Seldte as Minister of Labor.

       Frick and Goering, both Nazis were in the cabinet too.

Lenin’s Strokes

       Lenin experienced his first stroke in May 1922.

       The second came in November.

       It was obvious that the Bolshevik state would be involved in a protracted succession crisis.

       Lenin even had his doubts about Stalin and sought to have him removed from the Secretariat.

       For being too rude…less capricious.

       Then he had a third stoke…and died in January 1924.

Stalin: Man and Monster

       Lenin’s target was Joseph Vissarionovich Dzugashvili, aka Stalin.

       He was born in 1879.

       His mother hoped that he would become a priest.

       But was removed of his health, according to his mother or his political activities according to Stalin.

       He became involved in Socialist activities.

       Became a Bolshevik and idolized Lenin.

The Bolshevik Triumvirate

       Once Lenin was incapacitated a triumvirate of – Zinoviev, Kamenev, and Stalin – ruled in Lenin’s name.

       Stalin then manipulated the situation.

       All enemies of Trotsky.

       Following Lenin’s death, Trotsky’s power was in decline.

       In 1925, he was dismissed as War Commissar.

       Then removed from the Central Committee and Party in 1927.

       Then expelled from the USSR in 1929.

How Did Stalin Do It?

       He used his position as Party Secretary to place his Allies.

       He managed the Politburo and created factions which he manipulated.

       Used his past of never challenging Lenin to become the master of orthodoxy.

       Allowing Stalin to purge his opponents – Kamenev and Zinoviev – after Trotsky.

       By 1930 – the rest of the Old Bolsheviks – Bukharin, Tomsky, and Rykov – were purged too.

Gaining Control of the Party Machinery

       Once the Old Bolsheviks were purged, he replaced them with his allies.

       In the Council of the People’s Commissars.

       All Party organs.

       As well as city organizations.

       He also relied on the GPU/OGPU/NKVD.

       One of his cronies was Molotov who told Trotsky:

       “We can’t all be geniuses, Comrade Trotsky, but we’ll see who lasts longer.”

Economic Regimentation

       Lenin realized that his dreams were not working and created NEP.

       But not everyone like this change – including Trotsky.

       But after the Lenin died and his opponents were purged, Stalin embarked on massive industrialization.

       Which started with the First Five-Year Plan in 1928.

       To do this all over loyalties had to be broken.

       Stalin was up to the task

First Five-Year Plan of 1928

       Went into effect in Oct. 1928.

       Called for production increases of 200 to 400 percent.

       In agriculture inc. of 150% were demanded.

       This was to be accomplished by collectivizing agriculture.

       The peasants resisted and they were crushed by the OGPU.

       The peasants responded by destroying their crops and killing their animals.

       About 5 million people died as a result of the Terror Famine and the resistance to collectivization.

Reporting on the Terror Famine

       Generally it was not reported.

       Walter Duranty, a Pulitzer Prize Winner, failed to report the crime.

       Even though he kept a ledger including estimates of ten million dying.

       Five million more than generally anticipated.

       Why did he fail to report this crime?

       Any ideas?

Consequences of Failure

       The goals were set too high.

       But Stalin did not want to hear that.

       Instead, foreign agents were responsible.

       Wreckers too were held accountable.

       Overall the gains were negligible.

       Most observers never understood the human cost.

Background to the Purges

       There was opposition to the excesses of the super industrialization of the Five-Year Plan.

       Marshall Blucher failed to implement collectivization in Siberia warning the region could not be held against the Japanese.

       Stalin may not been aware of any specific plots.

       But he acted as if he did.

Death of Kirov

       Was a popular Leningrad Party Chief.

       And questioned the direction the government followed.

       Stalin saw Sergei Kirov as a threat.

       On his way to his office, Kirov was shot down by the assassin Nicholaev on Dec. 1, 1934.

       Clearly this was done with the approval of Stalin and designed by Yagoda.

The Impact of Kirov’s Murder

       Stalin painted a picture of a vast conspiracy lead by Zinoviev and Trotsky.

       Thousands were sent to the Gulag.

       Soon Zinoviev, Kamenev, and Radek were tried in the First Show Trial in 1936.

       Followed by Bukharin, Rykov, and Yagoda.

       Then in 1937, the senior Red Army commanders.

The Total Cost

      About 800,000 Party members were terminated.

      Six out of Thirteen Politburo members.

      Ninety-eight out of 138 Central Committee members.

      Fourteen out of Eighteen members of the Council of People’s Commissars.

      Nearly all of the People’s Commissars of the Federated Republics.

      In the Army three out of five marshals, fourteen out of sixteen army commanders, Sixty out of sixty-seven corps commanders, 136 out of 199 Divisional commanders.

Conclusion

      This happened on an unprecedented scale.

      Despite the Soviet Union was facing a major threat from Nazi Germany.

      Which supported Stalin’s totalitarian style.

      Who would challenge him?

      How would they carry it off?