The Great Depression hit the region from 1929 onwards, employment in the textile industry fell by 40 percent and many factories had to be closed.
Sudeten German Party politician Konrad Henlein benefited from the economic crisis and made several agitation tours of the region.
The activities against anti-fascist population began to escalate after the 1935 parliamentary elections, in which Sudeten German Party received majority of votes in German-speaking areas of Czechoslovakia.
On 12 September 1938, after Hitler's speech at the Nazi Party congress in Nuremberg, in which he publicly declared the right of the Sudeten Germans to self-determination and the will of the Reich to help them resolve this issue.
The police, gendarmerie and State Defense Guard were urged to restrain from fighting by the Ministry of the Interior.
Many were built on the mountains of the region, while the great Baroque churches are found in each larger town.
Impressive ruins are found in the old town centre of Šluknov and in nearby Lipová; they are awaiting further reconstruction and restoration.