1.3 The recovery of the republic

Question 1

Who was Stressemann and what were his two roles in government?

Answer 1

• First he had the role of chancellor and then foreign minister -> he was integral in the recovery of the republic.

Question 2

Rentenmark

Answer 2

Stressemann destroys the Deutschmark and introduces new currency: Rentenmark

• the supply of these notes were strictly limited and their value was tied to the price of gold.

hyperinflation comes to an end with improved economy and in turn businesses.

However, he could not bring back the losses of those people who took damage due to hyperinflation i.e. business owners and landlords and those with savings.

Question 3

The Dawes Plan (1924)

Answer 3

This plan originated from the American banker Dawes. The plan sought to resolve Germany’ non-payment reparations asked by Allies - Stressemann agrees and puts into place.

1. Reparations reduced to £50 millin
2. The US give loans to German industry - $25 million

Industrial output doubled exceeding pre-First World War levels.

Employment, trade and income from taxation increased.

However, this meant that Germany relied on America’s loans to build their entire economy. If America suddenly demanded for the loans to be repaid, this would place them in a difficult position + if America’s economy crashes, they will also suffer.

Question 4

The Young Plan (1929)

Answer 4

Stressemann made further progress with reparations when he agreed to this plan. It reduced the reparations that Germany had to pay to £2 billion instead and an additional 59 years to pay them back.

This fortunately, resulted in lower taxation of Germans and increased public spending power.

However, the plan placed more burden on the future generations, and after all, the country was still in debt - this angered the extreme political parties like the Nazis.

Lower reparations meant lower taxes for German people. -> the extreme political parties were completely against Germany paying the reparations at all.

Question 5

The Locarno Pact (1925)

Answer 5

This was a treaty between Germany, Belgium, France, Italy and Britain.

The Rhineland was to be demilitarised.

Open talks about Germany becoming a member of the League of Nations were initiated.

This made war less likely and Germany, after many years was treated as an equal to its European counterparts.

It increases the status and popularity of the Weimar Republic.

However, there was a little political tension as not all political parties agreed to the Pact.

Question 6

League of Nations (1926)

Answer 6

This was a new international body that hoped to discuss world problems in order to avoid war - they were invited to join in 1926 - it boosted the confidence held by most Germans in the Weimar government - It showed that Germany’s views will now be respected -

Question 7

Kellog-Briand Pact (1928)

Answer 7

This was an agreement between 62 nations - it committed countries to avoiding the use of war to achieve foreign policy objectives.

it showed that Germany was once again a major power.

It showed that moderate political parties could build Germany’s strength internationally.

Question 8

Stresemann’s success:

Answer 8

• strengthened the confidence of the German people in the Weimar Republic.
• reduced the support for extremist political parties like the Nazis and the KDP.
• increased support for moderate parties.
• reduced the economic hardships of the German people

Question 9

It wasn’t all a success

Answer 9

• the hated terms of the Treaty of Versailles were still in place
• The League of Nations was, for some, a symbol of the unpopular Treaty of Versailles.
• Some didn’t like the confirmation of the new border with France: many Germans felt the Treaty of Versailles was a national humiliation. The territorial losses symbolised defeat and contributed to a sense of injustice and resentment toward the Allied powers especially France.
• Extremist parties still had a relatively high popularity