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Baia County is one of the historic counties of Moldavia , Romania . The county seat was Fălticeni .

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203-586: In 1938, the county was disestablished and incorporated into the newly formed Ținutul Prut , but it was re-established in 1940 after the fall of Carol II 's regime - only to be abolished 10 years later by the Communist regime . Baia County covered 3,353 km and was located in Moldavia . Currently, the territory that comprised Baia County is now included in the Suceava County , Iași County and Neamț County . In

406-626: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,

609-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around

812-550: A "science of the nation". Gusti took teams of professors from various disciplines to the countryside to study an entire community from all vantage points every summer, who then produce a lengthy report about the community. For most of the interwar period, Romania was in the French sphere of influence, and in June 1926, a defensive alliance was signed with France. The alliance with France, together with an alliance with Poland signed in 1921, and

1015-417: A Legionary movement victory, Romania will have an alliance with Rome and Berlin". Without realizing it, Codreanu had sealed his doom with that speech. Carol had always insisted that control of foreign policy was his own exclusive royal prerogative, which no one else was allowed to interfere with. Despite the constitution, which stated that the foreign minister was responsible to the prime minister, in practice,

1218-606: A fifth column. In addition, Rosenberg's agents had established contracts with the Romanian extreme right, most notably with the National Christian Party headed by Octavian Goga and less substantial links with the Iron Guard headed by Corneliu Zelea Codreanu , which further annoyed Carol. The American historian Gerhard Weinberg wrote about Carol's foreign policy views: "He admired and feared Germany, but feared and disliked

1421-588: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to

1624-600: A generous patron of the arts and actively supporting the work of the Royal Foundation, an organization with a broad mandate to promote and study Romanian culture in all fields. In particular, Carol supported the work of the sociologist Dimitrie Gusti of the Social Service of the Royal Foundation, who in the early 1930s started to bring social scientists from various disciplines like sociology, anthropology, ethnography, geography, musicology, medicine, and biology together in

1827-459: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to

2030-471: A long series of affairs with various Romanian men with whom she could obtain more emotional and sexual satisfaction than she could with Ferdinand, who fiercely resented being cuckolded. The stern Carol I felt that Marie was unqualified to raise Prince Carol because of her affairs and her young age, as she was only seventeen when Carol was born, while Marie regarded the King as a cold, overbearing tyrant who would crush

2233-552: A minimum Britain, France, Poland, the Soviet Union, Turkey, Romania, Greece and Yugoslavia. For his part, Carol was obsessed with fears in the first half of 1939 that Hungary, with German support, would soon attack his kingdom. On 6 April 1939, a cabinet meeting decided that Romania would not join the "peace front" but would seek Anglo-French support for its independence. The same meeting decided that Romania would work to strengthen ties with other Balkan nations but would seek to prevent

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2436-596: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside

2639-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and

2842-570: A new era of German-Romanian economic relations. Germany had almost no oil of its own, and throughout the Third Reich, control of Romania's oil was a key foreign policy goal. Reflecting the changed emphasis, Carol vetoed in February 1937 a plan promoted by France and Czechoslovakia for a new alliance that would formally unite France with the Little Entente and envisioned much closer military ties between

3045-489: A preparatory move towards Goga's ultimate goal of the expulsion of all Romanian Jews. Carol was personally not an anti-Semite, but in the words of his biographer, Paul D. Quinlan, the king was "simply indifferent" to the sufferings of his Jewish subjects caused by Goga's oppressive anti-Semitic laws. The opportunistic Carol did not believe in antisemitism anymore than he believed in anything else other than power, but if raison d'état meant tolerating an anti-Semitic government as

3248-440: A scheming, dishonest man only interested in wrecking the democratic system to seize power for himself. To compensate for his rather negative and well-deserved "playboy king" image, Carol created a lavish personality cult around himself that grew more extreme as his reign went on, which portrayed the king as a Christ-like being "chosen" by God to create a "new Romania". In the 1934 book The Three Kings by Cezar Petrescu , which

3451-619: A seat there upon reaching maturity. Known more for his romantic misadventures than for any leadership skills, Carol was first married in the Cathedral Church of Odesa, Ukraine , on August 31, 1918 (under the occupation of the Central Powers at that time), to Joanna Marie Valentina Lambrino (1898–1953), known as "Zizi", the daughter of a Romanian general, Constantin Lambrino. The fact that Carol technically had deserted as he left his post at

3654-563: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In

3857-474: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of

4060-699: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to

4263-578: A throne anywhere in twentieth-century Europe". A colorful character, Carol was in the words of the British historian Richard Cavendish : "Dashing, willful and reckless, a lover of women, champagne and speed, Carol drove racing cars and piloted planes, and on state occasions, occasions appeared in operetta uniforms with enough ribbons, chains, and orders to sink a small destroyer." The Romanian historian Maria Bucur wrote about Carol: Of course, he loved luxury; being born to privilege he expected nothing less than

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4466-655: A tremendous need for oil and no sooner had the 1937 agreement been signed than the Germans asked for a new economic treaty in 1938. At the same time that the German-Romanian treaty was signed in December 1937, Carol was receiving the French Foreign Minister Yvon Delbos to show that the alliance with France was not yet dead. In September 1937, Carol paid an extended visit to Paris, during which he indicated to

4669-579: A visit to Russia in January of that year, he made a formal proposal to Nicholas for Maria's hand, but Nicholas "good-naturedly laughed the proposal aside", and argued that Maria "was nothing more than a schoolgirl". Maria was only 17 at the time, and shared her older sister's desire to marry a Russian and remain in Russia. In November 1914, Carol joined the Romanian Senate , as the 1866 Constitution guaranteed him

4872-565: A war which would result, in a few weeks, in the destruction of its army and the occupation of its territory...We do not wish to be the lighting conductor for the coming storm". Carol went on to complain that he had enough equipment for only two-thirds of his army, which also lacked tanks, anti-aircraft guns, heavy artillery and anti-tank guns while his air force had only about 400 antiquated aircraft of French manufacture that were no match for latest German aircraft. Weygand reported to Paris that Carol wanted Anglo–French support, but would not fight for

5075-547: A way of nipping the developing humanitarian crisis caused by Goga in the bud. The British minister Sir Reginald Hoare and French minister Adrien Thierry both submitted notes of protest against the Goga government's anti-Semitism, while President Roosevelt of the United States wrote a letter to Carol complaining about the anti-Semitic policies he was tolerating. On 12, 1938, Goga stripped all Romanian Jews of their Romanian citizenship,

5278-642: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation

5481-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated

5684-523: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that

5887-626: The Chamberlain government changing from appeasement of Germany to a policy of "containing" the Reich . Carol denied, unconvincingly, knowing anything about what Tilea was up to in London, but the British warnings to Germany against invading Romania in March 1939 led the Germans to relax their demands, and the latest German-Romanian economic treaty signed on 23 March 1939, was, in the words of Watt 'very vague". Despite

6090-521: The Four Year Plan organization to Bucharest with instructions to sign yet another German-Romanian economic treaty that would allow Germany total economic dominance over Romania, especially its oil industry. That Wohlthat, the number two man in the Four-Year Plan organization, was sent to Bucharest indicated the importance of the German-Romanian talks. Carol had resisted German demands for more oil in

6293-742: The National Liberal Party and the National Peasants Party and Iron Guard whom they would have needed to form a Coalition Government . Following this crisis Carol established a royal dictatorship in 1938 by removing the 1923 constitution , abolishing all political parties, and forming a new single party, the National Renaissance Front , which consisted mostly of former members of the National Peasants Party and National Christian Party who had been patronized by

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6496-565: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of

6699-633: The Reich . Starting in 1930, when the French began to build the Maginot Line along their border with Germany, some doubts started to be expressed in Bucharest about whether the French might actually come to Romania's aid in the event of a German aggression. In 1933, Carol had Nicolae Titulescu , an outspoken champion of collective security under the banner of the League of Nations, appointed foreign minister with instructions to use principles of collective security as

6902-605: The Volk Deutsch (ethnic German) community in Romania starting in 1934, a policy that greatly offended Carol, who regarded this as outrageous German interference in Romania's internal affairs. As Romania had half a million Volk Deutsch citizens in the 1930s, the Nazi campaign to take over the German community in Romania was a real concern for Carol, who feared that the German minority might become

7105-440: The camarilla was Carol's mistress, Madame Lupescu, whose political advice Carol greatly valued. Maniu had brought Carol to the throne out of the fear that the regency for Michael I was dominated by National Liberals, who would ensure that their party would always win the elections. Madame Lupescu was deeply unpopular with the Romanian people, and Maniu had demanded that Carol return to his wife, Princess Helen of Greece, as part of

7308-475: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,

7511-401: The interwar period , the county neighbored Câmpulung and Suceava counties to the north, Botoșani to the northeast, Iași to the east, Roman to the south, and Neamț counties to the west. Administratively, Baia County was originally divided into three districts ( plăși ): Subsequently, Plasa Moldova district was divided into two new districts: According to the 1930 census data,

7714-461: The "Little Entente," which united Romania, Czechoslovakia, and Yugoslavia, were the cornerstones of Romanian foreign policy. Starting in 1919, the French sought to create the Cordon sanitaire that would keep both Germany and the Soviet Union out of Eastern Europe. Carol did not seek to replace the foreign policy he had inherited in 1930 at first, as he regarded the continuation of the cordon sanitaire as

7917-413: The "Tilea affair", Carol had decided that he would refuse to become involved in any diplomacy that would force him to decisively choose between Germany and Britain, and he would never accept any support from the Soviet Union to deter Germany. As part of their new policy of seeking to "contain" Germany starting in March 1939, the British sought the construction of the "peace front," which was to comprise at

8120-647: The "Young Liberal" faction headed by Gheorghe Tătărescu as a way of weakening the power of the Brătianu family, who dominated the National Liberals. Pointedly, Carol was willing to allow the "Young Liberal" faction under Tătărescu to come to power, but excluded the main National Liberal faction under the leadership of Dinu Brătianu from obtaining power; Carol had not forgotten how the Brătianus had excluded him from

8323-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It

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8526-407: The 1st Prussian Guards regiment did not achieve the desired results, and Carol remained the "playboy prince". Romania in the early 20th century was an intensely Francophile nation, indeed perhaps the most Francophile nation in the entire world as the Romanian elite obsessively went about embracing all things French as the model for perfection in everything. To a certain extent, Carol was influenced by

8729-505: The Allies if war came. Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States ,

8932-642: The Allies. Carol's foreign policy going into 1939 was to strengthen Romania's alliances with Poland and the Balkan Entente, work to avoid conflicts with Romania's enemies Hungary and Bulgaria, and encourage Britain and France to get involved in the Balkans while trying to avoid giving offense to Germany. On 6 March 1939, the Patriarch Cristea died and was replaced as prime minister by Călinescu. In February 1939, Göring dispatched his deputy Helmuth Wohlthat of

9135-623: The Anglo-French efforts to link the security of the Balkans to the security of Poland. On April 13, 1939, the British prime minister Neville Chamberlain speaking in the House of Commons and the French Premier Édouard Daladier speaking in the Chamber of Deputies, announced a joint Anglo-French "guarantee" of the independence of Romania and Greece. Carol promptly accepted the "guarantee.". On 5 May 1939,

9338-899: The Army without permission to marry Zizi Lambrino caused immense controversy at the time. The marriage was annulled on March 29, 1919, by the Ilfov County Court. Carol and Zizi continued to live together after the annulment. Their only child, Mircea Gregor Carol Lambrino , was born on 8 January 1920. Carol next married Princess Helen of Greece and Denmark , who was known in Romania as Crown Princess Elena, on 10 March, 1921, in Athens , Greece . They were second cousins, both of them great-grandchildren of Queen Victoria , as well as third cousins in descent from Nicholas I of Russia . Helen had known of Carol's dissolute behavior and previous marriage, but her love for him

9541-745: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with

9744-648: The December 1938 agreement and instead had succeeded by early 1939 in placing Romania to a certain extent within the British economic sphere of influence. To counterbalance the increasingly powerful German influence in the Balkans, Carol wanted closer ties with Britain. At the same time, the Four-Year Plan was running into major difficulties by early 1939, and in particular, Göring's plans to have synthetic oil plants that would make oil from coal were well behind schedule. The new technology of making synthetic oil from lignite coal had run into major technical problems and cost overruns, and Göring had been informed in early 1939 that

9947-517: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there

10150-514: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in

10353-480: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit

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10556-540: The Foreign Minister Baron Konstantin von Neurath and Hermann Göring to tell them of Romania's desire for a rapprochement with the Reich . Carol was much relieved when Brătianu reported that Hitler, Neurath, and Göring had all reassured him that the Reich had no interest in supporting Hungarian revanchism and was neutral on the Transylvania dispute. The decoupling of Berlin's campaign to overthrow

10759-560: The French Foreign Minister Yvon Delbos that Romanian democracy would soon end. In a campaign speech for the general elections due that December, Corneliu Zelea Codreanu , "Captain" of the Archangel Michael Legion , called for an end to the alliance with France and stated: "I am for a Romanian foreign policy with Rome and Berlin. I am with the states of the National Revolution against Bolshevism. Within forty-eight hours of

10962-589: The French Marshal Maxime Weygand visited Bucharest to meet with Carol and his prime minister, Armand Călinescu to discuss Romania's possible participation in the "peace front.". Both Carol and Călinescu were supportive but evasive, saying that they would welcome having the Soviet Union fight against Germany, but would never allow the Red Army to enter Romania even if Germany should invade. Carol told Weygand: "I do not wish to let my country be engaged in

11165-654: The French and their allies in Eastern Europe. Because of its oil, the French were keen to keep the alliance with Romania strong, and because Romania's manpower was a way of compensating the French for their lower population vs. Germany's (the French had 40 million people while Germany had 70 million people). Additionally, it was assumed in Paris that if Germany invaded Czechoslovakia Hungary would also attack Czechoslovakia to regain Slovakia and Ruthenia. French military planners envisioned

11368-434: The French to inject millions of francs into the Romanian treasury and to lower their tariffs on Romanian goods. When the French refused both requests, an annoyed Carol wrote in his diary that the "Latin sister" France was behaving in a less than sisterly way towards Romania. In April 1936, when Wilhelm Fabricius was appointed German minister in Bucharest, the Foreign Minister Baron Konstantin von Neurath in his instructions to

11571-521: The Goga-Codreanu pact and used it as the justification for the self-coup he had been planning since late 1937. On 10 February 1938, Carol suspended the Constitution and seized emergency powers. Carol proclaimed martial law and suspended all civil liberties under the grounds that the violent election campaign was at the risk of plunging the nation into civil war. Having outlived his usefulness, Goga

11774-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There

11977-527: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade

12180-432: The Iron Guard by having Codreanu imprisoned for libeling the historian Nicolae Iorga after Codreanu had published a public letter accusing Iorga of dishonest business dealings. After Codreanu's conviction on 19 April 1938, he was convicted again in a second trial on 27 May 1938, of high treason where he was accused of working in the pay of Germany to affect a revolution since 1935 and sentenced to 10 years in prison. Carol

12383-409: The Jewish minority and led to immediate complaints from the British, French and American governments that Goga's policies were going to lead to a Jewish exodus out of Romania. Neither Britain, France, nor the United States had any wish to take in the Jewish refugees that Goga was creating by imposing increasingly oppressive anti-Semitic laws, and all three governments pressed for Carol to dismiss Goga as

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12586-421: The Kingdom of Romania, to the Grand Duchess Olga Nikolaevna of Russia , the eldest daughter of the Russian emperor at the time, Tsar Nicholas II : Sergey Sazonov , the Foreign Minister of the Russian Empire between 1910 and 1916, wanted Olga to marry Carol to ensure Romania's position as an ally of Russia in the eventuality of a war, as Romania was an ally of Germany at the time. Both royal families, including

12789-430: The League Covenant. The process of Gleichschaltung (coordination) in National Socialist Germany did not extend only to the Reich but was rather thought of by the National Socialist leadership as a worldwide process in which the NSDAP would take control over all of the ethnic German communities around the entire world. The Foreign Policy Department of the NSDAP, headed by Alfred Rosenberg , had attempted to take over

12992-523: The Legion and partly because he hoped that Goga would prove so incompetent as prime minister as to provoke such a crisis that would allow him to seize power for himself. Carol wrote in his diary that the markedly stupid Goga could not possibly last long as prime minister and that Goga's failure would allow him to "be free to take stronger measures which will free me and the country from the tyranny of party interests". Carol agreed to Goga's request to dissolve parliament for new elections on 18, 1938. As leader of

13195-403: The Legion", the group that collected contributions to the Legion. Carol only stopped contributing to the Legion after Codreanu started calling Lupescu a "Jewish whore". Carol's image was always that of "the playboy king", a hedonistic monarch more interested in womanizing, drinking, gambling, and partying, than in affairs of state, and to the extent that he cared about politics, Carol was viewed as

13398-405: The National Liberal prime minister, Ion G. Duca , which led to the first of several bans placed on the Legion. The assassination of Ion Duca, which was Romania's first political murder since 1862, shocked Carol, who saw the willingness of Codreanu to order the assassination of the Prime Minister as a clear sign that the egomaniacal Codreanu was getting out of control and that Codreanu would not play

13601-542: The Nazis to get over their outrage over the killings of the Iron Guard leaders by early 1939, and relations with Carol soon went back to normal. In December 1938, the National Renaissance Front was formed as the country's only legal party. That same month, Carol appointed his friend since childhood and another member of the camarilla, Grigore Gafencu as foreign minister. Gafencu was appointed foreign minister partly because Carol knew he could trust Gafencu and partly because of Gafencu's friendship with Colonel Józef Beck ,

13804-414: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on

14007-485: The Polish foreign minister, as Carol wanted to strengthen ties with Poland. Gafencu was to prove himself something of an opportunist as foreign minister, the man who always wanted to take the path of least resistance, in marked contrast to Armand Călinescu , the tough, "almost freakish-looking," diminutive, one-eyed Interior Minister (and soon to be prime minister) who proved himself a consistent opponent of fascism both in Romania and abroad and encouraged Carol to stand with

14210-406: The Regency Council that governed for King Michael, was known to be friendly with the National Liberals, the new prime minister was determined to dispose of the regency council by bringing back Carol. Returning to the country on 7 June, 1930, in a coup d'état engineered by National Peasant Prime Minister Iuliu Maniu , Carol was recognized by the Parliament as king of Romania the following day. For

14413-455: The Rhineland in March 1936, which had the effect of allowing the Germans to start building the Siegfried line along the border with France, something that considerably lessened the prospect of a French offensive into western Germany if the Reich should invade any of the states of the cordon sanitaire . A British Foreign Office memo from March 1936 stated that the only nations in the world that would apply sanctions on Germany for remilitarizing

14616-548: The Rhineland if the League of Nations should vote for such a step were Britain, France, Belgium, Czechoslovakia, the Soviet Union, and Romania. In the aftermath of the remilitarization of the Rhineland, and once it was clear that no sanctions were going to be applied against Germany, Carol started to voice his fears that the days of French influence in Eastern Europe were numbered and Romania might have to seek some understanding with Germany to preserve its independence. After continuing

14819-588: The Royal Palace called Lupescu a "Jewish whore" who was robbing Romania blind, which led to an insulted Carol calling on one of the members of his camarilla , the Bucharest police prefect Gavrilă Marinescu, who sent the police out to break up the Iron Guard rally with much violence. The doubts about the French willingness to undertake an offensive against Germany were further reinforced by the Remilitarization of

15022-531: The Soviet Union.". The fact that the first leader to visit Nazi Germany (albeit not in an official capacity) was the Hungarian Prime Minister Gyula Gömbös , who during his visit to Berlin in October 1933 signed an economic treaty that placed Hungary within the German economic sphere of influence – was a source of much alarm to Carol. For the entire interwar period, Budapest refused to recognize

15225-568: The Tsar and his wife Alexandra , gave their support for the idea, and there were high expectations that the marriage would take place. However, neither Carol or Olga demonstrated an interest for the other: Carol wasn't fond of Olga's appearance, and Olga expressed her wish to remain in Russia (should the marriage have taken place, Olga would have become the Crown Princess, and later the Queen of Romania ). This

15428-491: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This

15631-485: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending

15834-622: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in

16037-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had

16240-632: The Wall Street crash, after which the slide continued for three years, which was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in

16443-514: The alliance with France, Carol also began a policy of attempting to improve relations with Germany. On the domestic front, in the summer of 1936, Codreanu and Maniu formed an alliance to oppose the growing power of the Crown and the National Liberal government. In August 1936, Carol had Titulescu fired as foreign minister, and in November 1936, Carol sent the renegade National Liberal politician Gheorghe I. Brătianu to Germany to meet with Adolf Hitler ,

16646-558: The anti-revisionist states of Eastern Europe. Like France, Romania was allied to both Czechoslovakia and Poland, but because of the Teschen dispute in Silesia, Warsaw and Prague were bitter enemies. Like the diplomats of the Quai d'Orsay, Carol was exasperated by the bitter Polish-Czechoslovak dispute, arguing that it was absurd for anti-revisionist Eastern European states to be feuding with one another in

16849-455: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why

17052-540: The battle between the King and Marie, Carol ended up being both spoiled and deprived of love. During his teenage years, Carol ( Romanian for "Charles") acquired the "playboy" image that was to become his defining persona for the rest of his life. Carol expressed some concern at the direction that Prince Carol was taking, as the young Prince's only serious interest was stamp collecting and he spent an inordinate amount of time drinking, partying, and chasing after women. Young Carol fathered at least two illegitimate children by

17255-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate

17458-433: The benefactor of every philanthropic endeavor in the country. He loved parades and grandiose festivals and watched them closely, but he was not taken in by these events as more than shows of his power. He did not take them as a show of sincere popularity as Ceaușescu did during his later years. Carol had sworn in his coronation an oath to uphold the constitution of 1923, a promise he had no intention of keeping, and right from

17661-407: The best guarantee of Romania's independence and territorial integrity, and as such, his foreign policy was essentially pro-French. At the time that Romania signed the alliance with France, the Rhineland region of Germany was demilitarized, and the thinking in Bucharest had always been that if Germany should commit any act of aggression anywhere in Eastern Europe, the French would begin an offensive into

17864-442: The building blocks for creating some sort of security structure intended to keep both Germany and the Soviet Union out of Eastern Europe. Carol and Titulescu personally disliked one another, but Carol wanted Titulescu as a foreign minister as he believed he was the best man for strengthening ties with France and for bringing Great Britain into the affairs of Eastern Europe under the guise of the collective security commitments contained

18067-597: The chagrin of his parents. Carol found low-born women to have the qualities that he sought in a woman, such as informality, spontaneity, humor, and passion. The marriage soon collapsed in the wake of Carol's affair with Elena (Magda) Lupescu (1895–1977), the Roman Catholic daughter of Jewish parents who had converted to Christianity. Magda Lupescu had formerly been the wife of Army officer Ion Tâmpeanu. The National Liberal Party , which dominated Romania's politics, made much of Carol's relationship with Lupescu argue that he

18270-458: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which

18473-430: The constitution; silence was deemed as a "yes" vote. Under these conditions, an implausible 99.87 percent were reported as having approved the new charter, against fewer than 5,500 votes against it. At the time of his coup in February 1938, Carol informed the German minister Wilhelm Fabricius of his wish for closer ties between his country and Germany. Thierry told Carol in a meeting after the coup that his new government

18676-479: The country. His name was subsequently removed from the royal house of Romania by King Ferdinand I. After his removal from the Royal House, Carol moved to France with Lupescu under the name Carol Caraiman. Michael, aged 5, inherited the throne on the death of King Ferdinand in 1927. Princess Helen eventually divorced Carol in 1928. In the political crisis created by the deaths of Ferdinand I and Ion I. C. Brătianu and

18879-414: The county population was 157,501 inhabitants, consisting of 91.8% Romanians, 4.8% Jews, 1.2% Romanies, 0.6% Germans, as well as other minorities. As a mother tongue 93.5% spoke Romanian, 3.7% Yiddish, 0.7% Romany, 0.6% German, as well as other minorities. From a religious point of view, the population consisted of 92.9% Eastern Orthodox, 4.9% Jewish, 1.0% Roman Catholic, as well as other minorities. In 1930,

19082-419: The county's urban population was ethnically 76.6% Romanian, 19.7% Jewish, 1.3% German, as well as other minorities. From the religious point of view, the urban population had the following structure: 76.5% Eastern Orthodox, 20.3% Jewish, 2.4% Roman Catholic, as well as other minorities. Carol II of Romania Carol II (15 October 1893 [ O.S. 3 October 1893] – 4 April 1953)

19285-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by

19488-620: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what

19691-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered

19894-427: The democratic great powers would object to Carol proclaiming a dictatorship. Coming to realize belatedly that he was being used by Carol, Goga had a meeting with Codreanu on 8 February 1938, at the house of Ion Gigurtu to arrange for a deal under which the Iron Guard would withdraw its candidates from the election in order to ensure that the radical anti-Semitic right would have a majority. Carol quickly learned of

20097-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and

20300-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did

20503-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of

20706-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought

20909-402: The emergency powers Carol had seized in February, turning his government into a de facto legal dictatorship. It concentrated virtually all governing power in his hands, almost to the point of absolute monarchy . The new constitution was approved in a plebiscite held under far-from-secret conditions; voters were required to appear before an election bureau and verbally state whether they approved

21112-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though

21315-584: The enduring Franco-Romanian friendship between the two "Latin sisters.". The German minister to Romania, Count Friedrich Werner von der Schulenburg complained with disgust in a report to Berlin that everyone in the Romanian elite was an incurable Francophile who told him that Romania would never betray its "Latin sister" France. At the same time, Carol also considered the possibility that if Romanian-German relations were improved, then perhaps Berlin could be persuaded not to support Budapest in its campaign to regain Transylvania. Further pressing Carol towards Germany

21518-402: The entire elite needed to be destroyed was winning popular approval. In the spring of 1934, after Codreanu was acquitted, Carol, together with Bucharest police prefect Gavrilă Marinescu and Madame Lupescu, were involved in a half-hearted plot to kill Codreanu by poisoning his coffee, an effort that was abandoned before being attempted. Until 1935, Carol was a leading contributor to the "Friends of

21721-494: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating

21924-605: The face of the rise of German and Soviet powers. Several times, Carol attempted to mediate the Teschen dispute and thus end the Polish-Czechoslovak feud without much success. Reflecting his initially pro-French orientation, in June 1934, when the French foreign minister Louis Barthou visited Bucharest to meet with the foreign ministers of "the Little Entente" of Romania, Czechoslovakia, and Yugoslavia, Carol organized lavish celebrations to welcome Barthou that were made to symbolize

22127-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be

22330-452: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August

22533-535: The foreign ministers had always reported to the king. By challenging Carol's right to control foreign policy, Codreanu had crossed the Rubicon in the king's eyes and from that time on, Carol was committed to the destruction of the arrogant upstart Codreanu and his movement who had dared to challenge the king's prerogative. In the December 1937 elections , the National Liberal government of Prime Minister Gheorghe Tătărescu won

22736-542: The fourth party in parliament, Goga's government was certain to be defeated on a vote of no-confidence when parliament convened as the National Liberals, National Peasants and All for the Fatherland Party had all come out against Goga, albeit for very different reasons. The election got off to a violent start with a brawl in Bucharest between Goga's Lăncieri paramilitary group and the Iron Guard that left two dead, 52 hospitalized and 450 people arrested. The 1938 election

22939-533: The fragmentation of Greater Romania by the seceding of Bessarabia and Northern Bukovina to the USSR, Northern Transylvania to Hungary and Southern Dobruja to Bulgaria . Although a German guarantee was finally achieved, the situation had a disastrous effect on the reputation of Carol II. The reorientation of Romania's foreign policy towards Nazi Germany, however, would not prevent his regime from collapsing and he would be forced to abdicate by General Ion Antonescu ,

23142-615: The frontiers imposed by the Treaty of Trianon and laid claim to Transylvania region of Romania. Carol, like the rest of the Romanian elite, was worried by the prospect of an alliance of the revisionist states that rejected the legitimacy of the international order created by the Allies in 1918–20, indicating that Germany would support Hungary's claims to Transylvania. Hungary had territorial disputes with Romania, Yugoslavia, and Czechoslovakia, all of which happened to be allies of France. Accordingly, Franco–Hungarian relations were extremely bad during

23345-466: The government and attempting to form nationally concentrated governments, such as the Iorga-Argetoianu government. He also allowed for the formation of a corrupt parliament chamber around him, under the patronage of Elena Lupescu . A political crisis followed the December 1937 elections, where no party achieved an absolute majority and a coalition could not be formed because of disagreements between

23548-542: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing

23751-467: The grand lifestyle he saw in the other courts of Europe. Yet his style was not outlandish or grotesque like Nicolae Ceaușescu 's unique brand of kitsch. He liked things large but relatively simple – his royal palace testifies to that trait. Carol’s true passions were Lupescu, hunting, and cars and he spared no expense on them. Carol liked to present an impressive and populist persona to the public, wearing garish military uniforms adorned with medals, and being

23954-605: The helm of the country and dethrone his son again but was stopped by the Western Allies . For the rest of his life, he traveled the world, finally marrying Elena Lupescu while living in Brazil in 1947. After settling in the Portuguese Riviera , Carol II died peacefully at the age of 59, in exile. His son Michael I, refused to attend his funeral out of disgust for the treatment of his mother, Princess Helen by his father. Carol

24157-527: The high point of the Iron Guard's electoral success. On 28, 1937, Carol swore in the radical anti-Semitic poet Octavian Goga of the National Christian Party , which only won 9% of the vote, as prime minister. Carol's reasons for appointing Goga Prime Minister were partly because he hoped that anti-Semitic policies Goga would bring in would win him support from the All for Fatherland! voters and thus weaken

24360-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,

24563-492: The ineffective regency of Prince Nicholas of Romania , Miron Cristea , and Gheorghe Buzdugan , Carol was allowed to return to Romania in 1930, and his name was restored by the royal house of Romania, dethroning his own son. The beginning of Carol’s reign was marked by the negative economic effects of the Great Depression . Carol II weakened the parliament of Romania, often appointing minority factions of historical parties to

24766-514: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at

24969-508: The international system created by the Treaty of Versailles from Budapest's campaign to overthrow the system created by the Treaty of Trianon was welcome news to Carol, creating the possibility that a greater Germany would not mean a greater Hungary. Göring, the newly appointed chief of the Four Year Plan organization designed to have Germany ready to wage a total war by 1940, was especially interested in Romania's oil and talked much to Brătianu about

25172-465: The interwar period, and so – it seemed natural that Hungary would ally itself with France's archenemy, Germany. In 1934, Titulescu played a leading role in creating the Balkan Entente which brought together Romania, Yugoslavia, Greece, and Turkey in an alliance intended to counter Bulgarian revanchism. The Balkan Entente was intended to be the beginning of an alliance that would bring together all of

25375-516: The involvement of the USSR , Carol II maintained a neutrality policy. After the fall of France , Carol II's policy changed towards re-alignment with Nazi Germany in hopes of gaining a German guarantee. He was, however, not aware of the secret clauses of the Ribbentrop-Molotov pact between Germany and the Soviet Union that would see Romania lose significant parts of its territory. The year 1940 marked

25578-521: The king. The National Renaissance Front was the last of several attempts to counter the popularity of the fascist Iron Guard . Following the start of World War II , Carol II reaffirmed the Polish–Romanian alliance ; the military assistance was, however, declined by Poland , which wished to follow the Romanian Bridgehead plan that required a neutral Romania. Following the fall of Poland and

25781-400: The kingdom. Further adding to Lupescu's immense unpopularity, she was a businesswoman who used her connections to the Crown to engage in dubious transactions that usually involved large sums of public money – going into her pocket. However, the contemporary viewpoint that Carol was a mere puppet of Lupescu is incorrect, and Lupescu's influence on political decision-making was much exaggerated at

25984-543: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with

26187-694: The largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered the beginning of the Depression. The Depression was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on the stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until

26390-451: The largest number of seats, but less than the 40% required to form a majority government in parliament. After assassinating Prime Minister Duca in 1933, the Iron Guard had been banned from participating in elections, and to get around the ban Codreanu founded the All for Fatherland! party as a front for the Legion. The All for Fatherland! the party won 16% of the vote in the 1937 election, marking

26593-595: The leader of the Transylvanian branch of the National Peasants, broke away to form the Romanian Front with Carol's encouragement. During the same time, Carol developed close contacts with Armand Călinescu , an ambitious National Peasant leader who founded a faction opposed to the leadership of Carol's archenemy, Iuliu Maniu, and wanted the National Peasants to work with the Crown. In the same way, Carol encouraged

26796-462: The life out of her son. Additionally, the childless Carol I, who had always wanted a son, treated Prince Carol as his surrogate son and thoroughly spoiled him, indulging his every whim. Ferdinand was a rather shy and weak man who was easily overshadowed by the charismatic Marie, who became the most loved member of the Romanian royal family. Growing up, Carol felt ashamed of his father, whom both his grand-uncle and mother pushed around. Carol's childhood

26999-461: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,

27202-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then

27405-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view

27608-496: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and

27811-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that

28014-448: The murder of Codreanu and for a period in late 1938 waged a violent propaganda campaign against Carol, with German newspapers regularly running stories casting doubt about the official version of events that Codreanu had been "shot while trying to escape" while calling Codreanu's murder "a victory for the Jews," but ultimately economic concerns, especially the German need for Romanian oil caused

28217-568: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In

28420-517: The new German-Romanian economic agreement, which was signed on 10 December 1938, Weinberg wrote that "Carol made the needed concessions, but he demonstrated his concern for his country's independence by driving a very hard bargain.". The British historian D.C. Watt wrote that Carol had a "trump card" in his control of the oil Germany needed so badly and that the Germans were willing to pay a very high price for Romanian oil, without which their military could not function. During his summit with Hitler, Carol

28623-437: The new king. Despite his dislike of the National Liberals, Maniu's enmity towards Carol left the king with no choice, but to enlist as his allies the break-away factions of the National Liberals against the National Peasants, who demanded that Carol banish Lupescu and return to his wife. The "Red Queen," as Lupescu was known to the Romanian people on account of the color of her hair, was the most hated woman in 1930s Romania. She

28826-513: The new minister, described Romania as an unfriendly, pro-French state but suggested that the prospect of more trade with the Reich might bring the Romanians out of the French orbit. Neurath further instructed Fabricius that while Romania was not a major power in a military sense, it was a state of crucial importance to Germany because of its oil. Carol often encouraged splits in the political parties to his own ends. In 1935, Alexandru Vaida-Voevod ,

29029-426: The newly appointed and Nazi-backed prime minister , to be succeeded by his son Michael . After his abdication, Carol was permitted to leave the country with a special train loaded with his personal fortunes, which he had acquired during his time as king, and an attempt on his life was made by the Iron Guard, who had fired on the train in hope of killing the former king. After World War II, Carol II wanted to return to

29232-586: The next decade, he sought to influence the course of Romanian political life, first through manipulation of the rival Peasant and Liberal parties and anti-Semitic factions, and subsequently (January 1938) through a ministry of his own choosing. Carol also sought to build up his own personality cult against the growing influence of the Iron Guard , for instance, by setting up a paramilitary youth organization known as Straja Țării in 1935. The American historian Stanley G. Payne described Carol as "the most cynical, corrupt and power-hungry monarch who ever disgraced

29435-527: The parties in Romania. With regards to the Legion of the Archangel Michael , Carol had no intention of ever letting the Iron Guard come to power, but insofar as the Legion was a disruptive force that weakened both the National Liberals and the National Peasants, Carol welcomed the rise of the Iron Guard in the early 1930s, and he sought to use the Legion for his own ends. On 30, 1933, the Iron Guard assassinated

29638-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during

29841-411: The police to arrest Iron Guardsmen without warrant and to summarily execute those found with weapons. In view of Germany's desperate need for oil and the repeated German requests for a new economic agreement that would allow for more Romanian oil to be shipped to the Reich , Carol met Fabricius to tell him that he wanted such an agreement to create a lasting understanding between Germany and Romania. At

30044-477: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in

30247-455: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in

30450-469: The powerful Brătianu family to exercise power and, after the National Liberal prime minister Ion I. C. Brătianu died in 1927, the Brătianu's were unable to agree upon a successor, causing the fortunes of the National Liberals to go into decline. In the 1928 elections, the National Peasant Party under Iuliu Maniu won a resounding victory, taking 78% of the vote. As Prince Nicolae , the chief of

30653-512: The prevailing Francophilia, but at the same time, he inherited from Carol I, in the words of the American historian Margaret Sankey, a "profound love of German militarism" and the idea that all democratic governments were weak governments. Sometime before the First World War , the Romanian and Russian royal families held talks about the marriage of Carol, at that time the heir to the throne of

30856-490: The price for being given the throne. When Carol broke his own word and continued to live with Madame Lupescu, Maniu resigned in protest in October 1930 and was to emerge as one of Carol's leading enemies. At the same time, Carol's return had prompted a break in the National Liberals with Gheorghe I. Brătianu breaking away to found a new party, the National Liberal Party-Brătianu that was willing to work with

31059-704: The price of gaining power, Carol was quite prepared to sacrifice the rights of his Jewish subjects. At the same time, Goga proved himself a better poet than politician, and there was a crisis atmosphere in early 1938 as the Goga government, which obsessed with solving the "Jewish Question", to the exclusion of everything else, was clearly floundering. Weinberg wrote about Goga, saying that he was "Unprepared for office and untouched by any leadership ability..." and whose clownish antics left diplomats stationed in Bucharest "half-amused, half-appalled". As Carol had expected, Goga proved to be such an inept leader as to discredit democracy while his anti-Semitic policies ensured that none of

31262-484: The rest of the Romanian elite, was deeply shocked by the Munich Agreement of 30 September 1938, which he saw as allowing all of Eastern Europe to fall within the German sphere of influence. Romania had long been one of the most Francophile nations in the world, which meant that the effects of Munich were felt especially strongly there. Weinberg wrote about the effect of Munich on Franco-Romanian relations: "In view of

31465-443: The rights of succession to the royal crown of Romania, both of which were refused by his father, King Ferdinand . After the dissolution of his marriage, he met Princess Helen of Greece and Denmark , daughter of King Constantine I of Greece , married her in March 1921, and later that year had a son, Michael . But due to Carol's continued affairs with Elena Lupescu he was obliged to renounce his succession rights in 1925 and leave

31668-517: The role assigned by the king as a disruptive force threatening the National Liberals and National Peasants alike. In 1934, when Codreanu was brought to trial for ordering Duca's assassination, he used as his defense the argument that the entire Francophile elite was completely corrupt and not properly Romanian, and as such, Duca was just another corrupt National Liberal politician who deserved to die. The jury acquitted Codreanu, an act that worried Carol as it showed that Codreanu's revolutionary message that

31871-431: The role of Romania and Yugoslavia in such a war as invading Hungary to relieve the pressure on Czechoslovakia. Until 1940, Carol's foreign policy teetered uneasily between the traditional alliance with France and an alignment with the newly ascending power of Germany. In the summer of 1937, Carol told French diplomats that if Germany attacked Czechoslovakia, he would not allow the Red Army transit rights across Romania but

32074-539: The same time his economic experts were telling him the Reich needed to import 400,000 tons of oil per month while Germany had in fact imported only 61,000 tons of oil per month in the last four months of 1938. In 1938, Romania produced 6.6 million tons of crude oil, 284,000 tons of crude steel, 133,000 tons of pig iron , 510,000 tons of cement and 289,000 tons of rolled steel. Hence Wohlthat demanded during his talks with Romanian Foreign Minister Grigore Gafencu that Romania nationalize their entire oil industry, which

32277-575: The same time, Carol mobilized five infantry corps on the Hungarian border to guard the supposed invasion. The British "economic offensive" in the Balkans was causing Germany very real economic pain as the British bought up Romanian oil that the Germans badly needed, hence their demands for control of the Romanian oil industry that so offended Carol. As the British believed in Tilea's claims, the "Tilea affair" had an immense impact on British foreign policy and led to

32480-463: The same time, in October–November 1938, Carol was playing a double game and appealed to Britain for help, offering to place Romania within the British economic sphere of influence, and visited London between 15 and 20 November to hold unsuccessful talks on that subject. On 24 November 1938, Carol visited Germany to meet with Hitler in order to improve German-Romanian relations. During the talks for

32683-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of

32886-443: The spring to murder all of the Iron Guard leaders in custody. On the night of 30 November 1938, Carol had Codreanu and 13 other Iron Guard leaders murdered, with the official story being that they were "shot while trying to escape.". The killings on the night of 30 November 1938, which saw much of the Iron Guard's leadership wiped out, have gone down in Romanian history as "the night of the vampires.". The Germans were much offended by

33089-408: The start of a glorious golden age as Petrescu asserted that rule by monarchs was what God wanted for Romanians. Carol had little understanding of or interest in economics, but his most influential economic advisor was Mihail Manoilescu who favored a statist model of economic development with the state intervening in the economy to encourage growth. Carol was very active in the cultural realm, being

33292-537: The start of his reign, the king meddled in politics to increase his own power. Carol was an opportunist with no real principles or values other than the belief that he was the right man to rule Romania and that what his kingdom needed was a modernizing dictatorship. Carol ruled via an informal body known as the camarilla , comprising courtiers together with senior diplomats, army officers, politicians, and industrialists, who were all in some way dependent upon royal favor to advance their careers. The most important member of

33495-426: The succession in the 1920s. In February 1935, the Legion's leader, Corneliu Zelea Codreanu , who until then had been regarded as an ally of Carol, for the first time attacked the king directly when he organized demonstrations outside of the royal palace attacking Carol after Dr. Dimitrie Gerota had been imprisoned for writing an article exposing the corrupt business dealings of Lupescu. Codreanu, in his speech before

33698-402: The synthetic oil plants whose construction had started in 1936 would not be operative by 1940 as planned. It was not until the summer of 1942 that Germany's first synthetic oil plants finally started operating. It was painfully obvious to Göring in the first months of 1939 that the German economy would not be ready to support a total war by 1940 as the Four-Year Plan of 1936 had envisioned while at

33901-478: The talks in Bucharest went very badly. It was at this point that Carol began what became known as the "Tilea affair" when, on 17 March 1939, Virgil Tilea , the Romanian minister in London, burst unexpectedly into the office of the British Foreign Secretary, Lord Halifax in an agitated state to announce that his country was faced with an imminent German invasion and asked Halifax for British support. At

34104-434: The teenage schoolgirl Maria Martini by the time that he was 19. Carol rapidly became a favorite of gossip columnists around the world owing to the frequent photographs that appeared in the newspapers showing him at various parties with him holding a drink in one hand and a woman in the other. In order to teach the prince the value of Prussian virtues , the King had the prince commissioned as an officer in 1913. His time with

34307-411: The throne on December 28, 1925, in favor of his son by Crown Princess Helen, Michael I (Mihai), who became king in July 1927 upon the death of his paternal grandfather, King Ferdinand I . Helen divorced Carol in 1928. After renouncing his right to the throne, Carol moved to Paris, where he lived openly in a common-law relationship with Madame Lupescu. The National Liberal Party was largely a vehicle for

34510-432: The throne. The campaign waged by the National Liberals had less to do with disgust with Carol's relationship with Madame Lupescu than with an effort to remove a potential "loose cannon", as Carol made it clear when he succeeded to the throne that he would not be content to let the National Liberals dominate politics in the way that the previous Hohenzollern kings had. As a result of the scandal, Carol renounced his right to

34713-409: The time. Lupescu was primarily interested in enriching herself to support her extravagant lifestyle and had no real interest in politics, beyond protecting her ability to engage in corruption. Unlike Carol, Lupescu had utterly no interest in social policy or foreign affairs and was such a self-absorbed narcissist that she was unaware of just how unpopular she was with ordinary people. Carol by contrast

34916-499: The traditional ties going back to the beginnings of Romanian independence and manifested in the way in which the Romanian elite looked to France as the model for everything from fashion to government, the revelation of France's abdication was particularly shocking." In October 1938, the Iron Guard had begun a terrorist campaign of assassinating police officers and bureaucrats and staging bombings of government offices as part of an effort to overthrow Carol. Carol struck back hard, ordering

35119-471: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and

35322-659: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in

35525-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among

35728-503: Was King of Romania from 8 June 1930, until his forced abdication on 6 September 1940. As the eldest son of King Ferdinand I , he became crown prince upon the death of his grand-uncle, King Carol I , in 1914. He was the first of the Hohenzollern kings of Romania to be born in the country, as both of his predecessors had been born in Germany and came to Romania only as adults. As such, he

35931-399: Was "well received" in Paris and that the French would not allow the end of democracy to affect their relations with Romania. The new government of Patriarch Cristea did not introduce new anti-Semitic laws but did not repeal the laws passed by Goga either, though Cristea was less extreme about enforcing these laws. When asked by a Jewish friend if his citizenship would be restored now that Goga

36134-639: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject

36337-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did

36540-441: Was a woman whom ordinary Romanians saw as "the embodiment of evil," in the words of the British historian Rebecca Haynes. Princess Helen was widely viewed as the wronged woman, while Lupescu was seen as the femme fatale who had stolen Carol away from the loving arms of Helen. Lupescu was Roman Catholic, but because of her parents' background, she was widely viewed as Jewish. Lupescu's personality did not win her many friends, as she

36743-425: Was arrogant, pushy, manipulative, and extremely greedy, with an insatiable taste for buying the most expensive French clothes, cosmetics, and jewelry. At a time when many Romanians were suffering from the Great Depression in Romania , Carol's habit of indulging Lupescu's expensive tastes caused much resentment, with many of Carol's subjects grumbling that the money would have been better spent on alleviating poverty in

36946-497: Was best seen during the visit of the Romanian royal family to Russia in March, 1914 , and during a visit of Nicholas and his family to Romania a few months later. After the failure of the planned joining of Carol and Olga, the idea of a possible marriage of a Romanian royal to a Russian royal faded until 1917 , when Carol began showing interest in the younger sister of Olga, the Grand Duchess Maria Nikolaevna . In

37149-754: Was born in Peleș Castle and grew up under the thumb of his dominating grand-uncle, King Carol I. King Carol I largely excluded Carol's parents, the German-born Crown Prince Ferdinand and the British-born Crown Princess Marie , from any role in bringing him up. Romania in the early 20th century had a famously relaxed "Latin" sexual morality, and the British Princess Marie of Edinburgh despite or perhaps because of her Victorian upbringing ended up "going native", having

37352-496: Was conceived out of wedlock. Apparently close at first, Carol and Helen drifted apart. Carol's marriage with Princess Helen was an unhappy one, and he frequently engaged in extramarital affairs. The elegant wallflower Helen found the bohemian Carol, with his love of heavy drinking and constant partying, rather too wild for her tastes. For his part, Carol disliked royal and aristocratic women, whom he found too stiff and formal, and had an extremely marked preference for commoners, much to

37555-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of

37758-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing

37961-549: Was gone, Interior Minister Armand Călinescu , who detested the Iron Guard and antisemitism, replied that the Cristea government had no interest in restoring citizenship back to the Jews. In March 1938, Armand Călinescu , the Interior Minister who had emerged as one of Carol's closet allies and who was to serve as the "strong man" of the new regime, demanded the Iron Guard be finally destroyed. In April 1938, Carol moved to crush

38164-404: Was henceforth controlled by a new corporation owned jointly by the German and Romanian governments, while demanding Romania "respect German export interests" by only selling their oil to Germany. In addition, Wohlthat demanded a host of other measures that, to all practical purposes, would have converted Romania into a German economic colony. As Carol had no intention of giving in to these demands,

38367-491: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by

38570-506: Was intended for a less educated audience, Carol was constantly described as being almost god-like, the "father of the villagers and workers of the land" and the "king of culture" who was the greatest of all the Hohenzollern kings and whose return from exile from France via airplane in June 1930 was a "descent from the heavens". Petrescu depicted Carol's return as the beginning of his God-appointed task of becoming "the maker of eternal Romania",

38773-492: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened

38976-420: Was interested in the affairs of the state, and though he never sought to deny his relationship with Lupescu, he was careful not to display her too much in public, as he knew that this would bring him unpopularity. Carol sought to play the National Liberals, the National Peasant Party, and the Iron Guard off against each other with the ultimate aim of making himself master of Romanian politics and disposing of all

39179-881: Was made a Stranger Knight Companion of the Order of the Garter in 1938 (the 982nd member since the order's inception) by his second cousin, George VI (King of the United Kingdom). In 1937, he was awarded the Grand Cross of Justice of the Military and Hospitaler Order of Saint Lazarus of Jerusalem and given the Grand Collar of the Order on 16 October 1938. He served as the Grand Bailiwick of the budding Grand Bailiwick of Romania. Carol, together with

39382-484: Was much offended when Hitler demanded that Carol free Codreanu and appoint him prime minister. Carol believed that as long as Codreanu lived, there was a possible alternative leadership in Romania for Hitler to back, and that if this possibility was eliminated then Hitler would have no choice other than to deal with him. Carol had initially planned to keep Codreanu in prison, but after the terrorist campaign began in October 1938, Carol agreed to Călinescu's plan drawn up in

39585-431: Was one of the most violent elections in Romanian history, as the Iron Guard and Lăncieri battled one another for control of the streets while seeking to establish their anti-Semitic creditations by assaulting Jews. As Parliament never met during the Goga government, Goga had to pass laws via emergency decree, which all had to be countersigned by the king. The harsh anti-Semitic policies of the Goga government impoverished

39788-544: Was sacked as prime minister and Carol appointed Patriarch Elie Cristea , the head of the Romanian Eastern Orthodox Church , as his successor. Carol knew he would command wide respect in a country where the majority of the population was Orthodox. On 11, 1938, Carol drafted a new constitution . Although it was superficially similar to its 1923 predecessor, it was actually a severely authoritarian and corporatist document. The new constitution effectively codified

39991-591: Was spent being caught up in an emotional tug-of-war between Carol I and Marie, who had very different ideas about how to raise him. The Romanian historian Marie Bucur described the battle between Carol I and Princess Marie as one between traditional 19th-century Prussian conservatism as personified by Carol I versus the 20th-century liberal, modernist, and sexually deviant values of the " New Woman " as personified by Princess Marie. Aspects of both Marie's and Carol I's personalities were present in Carol II. Largely because of

40194-617: Was the desperate state of the Romanian economy: even before the worldwide Great Depression , Romania had been a poor country, and the Great Depression hit Romania hard, with Romanians being unable to export much owing to the global trade war set off by the American Smoot-Hawley Tariff Act of 1930, which in turn led to a decline in the value of the Leu as Romania's reserves of foreign exchange were being used up. In June 1934, Romanian finance minister Victor Slăvescu visited Paris to ask

40397-450: Was the first member of the Romanian branch of the Hohenzollerns who spoke Romanian as his first language and was also the first member of his royal family to be raised in the Orthodox faith. Carol's life and reign were surrounded by controversy and accusations of lack of duty, due to his desertion from the army during World War I . Another controversy was his marriage to Zizi Lambrino , which resulted in two attempts by Carol to give up

40600-411: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that

40803-439: Was undeterred. The intent behind this arranged marriage was to help organize a dynastic alliance between Greece and Romania. Bulgaria had territorial disputes with Greece, Romania, and Yugoslavia, and all three of the latter states tended to be close during the interwar period owing to their shared fears of the Bulgarians. Helen and Carol's only child, Michael , was born seven months after their marriage, sparking rumors that Michael

41006-424: Was unqualified to be king. One of the leading figures of the National Liberals was Prince Barbu Știrbey – who was also Queen Marie's lover, and Carol had a strong dislike of Știrbey, who had humiliated his father via his indiscreetly disguised relationship with Marie, and hence of the National Liberals. Knowing that Carol was ill-disposed towards them, the National Liberals waged a sustained campaign to keep him from

41209-407: Was willing to ignore the Soviets if they crossed Romanian airspace on their way to Czechoslovakia. On December 9, 1937, a German-Romanian economic treaty was signed that placed Romania within the German economic sphere of influence but left the Germans unsatisfied as the Reich' s enormous demand for oil to power its increasingly large war machine, was not yet fulfilled by the 1937 treaty. Germany had

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