When the peace treaties came into effect, serious problems faced the countries that had been at war. Great Britain had not been invaded, but she had suffered heavy losses of human life and materials, and she too had her ‘devastated areas’: industry which needed to be reconverted and re-equipped, the fleet to be rebuilt, former markets to be won back, American and Japanese (and before long German) competition to be faced; the national debt was very heavy, and the balance of payments was threatened. Exports had to be redeveloped and the pound restored to its old supremacy, for this had formerly been the condition of her prosperity.

In France the terrible bloodshed of the war had cost 1,750,000 lives, and the birth-rate fell below that of 1913; the ruins remained to be built upon, but the country's debts were made worse by having to pay for war damage and for pensions to war victims of all categories. The international situation was sombre. France and, to a lesser extent, Britain assumed an attitude of resolute hostility towards Russia, whose revolutionary propaganda they feared. Germany was also the subject of their distrust, all the more so since she seemed to be trying by all possible means to evade the restrictions of the Versailles ‘Diktat’. France, particularly sensitive on this question, insisted on strict compliance with the terms of the treaty, with a narrow-minded adherence to the letter of the law symbolised by Poincaré.