1.3 The recovery of the Republic 1924-29

Question 1

Who did Ebert appoint in August 1923

Answer 1

Gustav Stresemann as his new chancellor and foreign secretary.

Question 2

What was Stresemann’s main objective?

Answer 2

To make the political situation in Germany more stable. He hoped that by stabilising the economy and regaining respect for Germany in foreign affairs, the public would be more content with the Weimar Republic. This way he hoped to unite most Germans behind moderate political parties.

Question 3

End of hyperinflation

Answer 3

Calling off the ‘passive resistance’ of German workers in the Ruhr. This helped Germany’s economy because goods were back in production and the Government could stop printing money to pay striking workers.

Promising to begin reparations payments again. This persuaded France and Belgium to end the occupation of the Ruhr by 1925.

Introducing a new currency called the Rentenmark. This stabilised prices as only a limited number were printed meaning money rose in value. This helped to restore confidence in the German economy both internally and
internationally. The currency had real value, as its value was tied to the price of Gold and they were backed by German industrial plants and agricultural land.

Reducing the amount of money the government spent (700,000 government employees lost their jobs) so that its budget deficit reduced.

Question 4

When did Stresemann agree to the Dawes plan

Answer 4

April 1924

Question 5

What was included in the Dawes plan

Answer 5

• Reparations were temporarily reduced to £50 million per year.
• US banks agreed to give loans to German industry. They loaned $25 billion between 1924 and 1930.

Question 6

Benefits of the Dawes plan

Answer 6

• Industrial output doubled between 1923 and 1928

- Employment, trade and income from taxation increased.

Question 7

Drawbacks of the Dawes plan

Answer 7

• The extreme political parties were furious that Germany had again agreed to pay reparations.
• Furthermore, the fragile economic recovery depended on American loans.

Question 8

When was the Young Plan put forward by a committee (set up by the Allies)

Answer 8

1929

Question 9

What was included in the Young Plan?

Answer 9

It reduced the total reparations debt from 6.6 billion to 2 billion, Moreover, Germany were given a further 59 years to pay.

Question 10

Benefits of the Young Plan, 1929

Answer 10

Lower reparations payments allowed the government to lower axes on ordinary German people.

Lower taxes released public spending power. This boosted German industry and created more jobs; these jobs boosted spending power and this boosted industry and employment again.

French agreed to leave the Rhineland in 1930.

increased the confidence of Germans in the Weimar Republic.

Question 11

Drawbacks of the Young Plan

Answer 11

The annual payments were still 50 million per year

Furthermore they now stretched out until 1988

Question 12

What was the Locarno Pact, 1925

Answer 12

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

Question 13

Benefits of the Locarno Pact, 1925 for Germany

Answer 13

• France promised peace with Germany.
• It was agreed by Germany, not imposed.
• Germany and the Allies agreed that the Rhineland would be permanently demilitarised.
• The 5 powers agreed to open talks about the German membership of the League of Nations.

It made war in Europe less likely.
Germany was also being treated as an equal. This was a boost to the prestige of the Weimar Republic and increased the confidence of many Germans in the moderate political parties who supported Stresemann.

Question 14

League of Nations 1926

Answer 14

When the League of Nations was set up as part of the Versailles agreement Germany was initially excluded. By signing the Locarno Treaties, Germany showed that it was accepting the Versailles settlement and so a year later was accepted as a permanent member of the Council of League, making it one of the most powerful countries in the League.

Question 15

What was the impact of Germany being included in the League of Nations

Answer 15

Germany was seen as a powerful country.
This was a boost to the moderate parties who supported Stresemann. It also boosted the confidence of most Germans in the Weimar Republic.

Question 16

Kellogg-Briand Pact, 1928

Answer 16

Germany was one of 62 countries that signed up to this agreement, which committed its signatories to settling disputes between them peacefully.

Question 17

How was the Kellogg-Briand Pact another step forward for Germany in foreign affairs?

Answer 17

It showed that Germany was now included amongst the main powers, not dictated to by them.

It also suggested that the Weimar Republic was now a respected, stable state.

This was another boost to the prestige of the Weimar Republic in the eyes of the German public. It increased confidence that the moderate political parties could be trusted to make Germany strong.

Question 18

The Impact on domestic politics

Answer 18

Stresemann’s strategy had been to remove the grievances and hardships of the German people, to cut support for extreme parties and reach agreements with other powers, so he could negotiate changes to the TOV treaty. This is shown through the decrease in support for extreme parties. As a result, by 1929, the Weimar Republic was a more secure and stable state.

Germany’s growing confidence in the Weimar Republic in the Weimar Republic was strengthened when Ebert died in 1925. He was one of the Social Democrats who led the revolution against the Kaiser. He was replaced by Hindenburg. who reassured the middle class and gave the Weimar Republic a strong figurehead.

However, Stresemann died in October 1929, and the loss of his moderate policies was a severe blow for the Weimar Republic.