1.4 The recovery of the Republic, 1924–29

Question 2

WHat was Gustav Stresemann’s ecomic recovery plan?

Answer 2

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

Question 3

What was the Daws plan?

Answer 3

-Amount of reparations to be paid Stayed the same overall (50 billion Marks) but Germany only had to pay 1 billion Marks per year for the first 5 years and 2.5 billion per year after that
Amount of time over which they would be paid: Indefinite
-Germany was loaned 800 million Marks from the USA

Question 4

When was th Dawes Plan?

Answer 4

Proposed April 1924, agreed September 1924

Question 5

When was The Young Plan?

Answer 5

Proposed August 1929, agreed January 1930

Question 6

What was the Young Plan

Answer 6

-Reduced the total amount by 20%. Germany was to pay 2 billion Marks per year, two thirds of which could be postponed each year if necessary
-59 years, with payments to end in 1988
-US banks would continue to loan Germany money, coordinated by J P Morgan, one of the world’s leading bankers

Question 7

WHat were the signs the Weimar Republic did economically recover? ( by 1924-29)

Answer 7

Recovery
-By 1928 industrial production levels were higher than those of 1913 (before World War One)
-Between 1925 and 1929 exports rose by 40%
-Hourly wages rose every year from 1924 to 1929 and by 10% in 1928 alone
-IG Farben, a German chemical manufacturing company, became the largest industrial company in Europe
-Generous pension, health and unemployment insurance schemes were introduced from 1927

Question 8

What were the signs the Weimar Republic didn’t economically recover? ( by 1924-29)

Answer 8

continued weakness
-agricultural production did not recover to its pre-war levels
-it spent more on imports than it earned from exports, so Germany was losing money every year
-unemployment did not fall below 1.3 million and in 1929 increased to 1.9 million
-German industry became dependent upon loans from the USA
-The government ended up spending more than it received in taxes and so continued to run deficits from 1925 onwards

Question 9

Who was Gustav Stresemann?

Answer 9

-tresemann was Chancellor for only three months but continued to serve as Foreign Minister, rebuilding and restoring Germany’s international status until his death in October 1929, ironically just weeks before the
Wall Street Crash
that would end Weimar’s period of greater prosperity and stability.
-Was a nationalist

Question 10

What was the period of improved international relations for Germany? What events contributed to this?

Answer 10

1925 and 1928.

Question 11

When was the Locarno Treaties

Answer 11

1925
Oct

Question 12

What was the Locarno Treaties ?

Answer 12

France and Belgium agreed to respect their post-Versailles borders, whilst Germany agreed with Poland and Czechoslovakia to settle any border disputes peacefully. Germany had previously complained bitterly about their loss of territory.

Question 13

When was the League of Nations?

Answer 13

1926

Question 14

What was the League of Nations?

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 Kellogg-Briand Pact?

Answer 15

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

Question 16

When was the Kellogg-Briand Pact?

Answer 16

1928

Question 17

What did the develpment of international relations lead to?

Answer 17

-These developments meant that Germany was accepted into the** emerging ‘international community’ **that sought to work together during the 1920s to avoid another destructive war.
-It also helped Germany’s internal wounds to heal – the government was seen to be taking decisive action to make life better for people and right some of the wrongs that the Treaty of Versailles had caused.
This led to greater political stability and less extremism.
-This ethos of collaboration and peaceful cooperation only lasted, however, until the onset of the Great Depression following the
Wall Street Crash
of October 1929.