1.3 The recovery Of The Republic 1924-1929 Flashcards
what were the reasons for economic recovery?
Rentemark
Dawes Plan
Young Plan
what was the rentenmark?
-were strictly limited notes, whose value was tied to price of gold. -was backed by German industrial banks.
-issued by rentenbank
what did the rentenmark get renamed to in 1924/
Reichsmark,(was also backed by germans gold reserves)
what was the impact of the introduction to the reichsmark?
this stopped inflation
German money trusted at home
provided stronger basis for germanen employment
However this did not bring back the losses people received during hyperinflation
what was the dawes plan 1924?
where in april 1924 charles dawes agreed with stresseman that
-reperations are temporarily reduced to 50million a year
-US banks loaned germany $25 billion between 1924-1930
What was the benefit from the Dawes Plan?
-the french left ruhr
-industrial outputs had doubled between 1923-1929
–Employment/trade income increased
what were the drawbacks from the Dawes Plan 1924?
-some extreme political parties were furies at germans for agreeing to pay reoperations
-the german economy was fragile as it depended on american loans
What was the young plan 1929?
-reduced reoperations by £4.6 billion
-gave 59 more years to pay
what were the drawback of the young plan?
-Annual payment had stretched to 1988 and were $50 million a year
what were the benefits of the young plan?
was lower reperations, allowing govermant to lower taxes on german poeple
-lower taxes meant more disposable income for german, boosted industry and employment.
-the french left rhineland in 1930
-increased Germans confidence in Weimar republic
how many poeple favored the young plan?
1929 was a referendum, were 35 million germans favored it. (was 85% of those that did.
how did stressemann recover Germanys foreign relations?
-locarno Pact, 1925
-The league of nations
-Kellogg-Briand Pact
what was the Locarno Pact in 1925?
A treaty between germany, britain, france, italy and belgium. Where they accepted 1919 borders with france, Aswell as promising peace with france
-Also german Allies agreed Rhineland is permanently demilitarised
This would start the negotiations for Germanys membership in the league of nations.
why was the locarno pact seen as a triumph?
-this redused the chances of war in europe
-germans were treated as an equal
-for weimer republic, this boosted there prestige
-increased confidence for Germans in moderate parties
why did some political parties hate the Locarno pact 1925?
they hated the versalius borders.
