2) Recovery Of Weimar Flashcards
Which individual was German economic recovery largely due to?
Gustav Stesemann
When was the Dawes Plan introduced?
1924
What was the Dawes Plan?
Stresemann persuaded the French, British and Americans to change the reparation payment terms in August 1924.
What did the Dawes Plan entail?
- Reparation payments were reduced to more sensible and manageable payments and were based upon Germany’s capacity to pay.
- The Ruhr area was to be evacuated by Allied occupation troops (occurred in 1925).
- The US would give loans to Germany $3,000 million over 6 years.
What were the negatives of the Dawes plan?
Germany was dependent on the US doing well and they still had to pay reparations.
What was the Rentenmark?
Stresemann introduced a temporary currency called the Rentenmark. This was issued in limited amounts based on property values. In 1924 it was converted to the Reichsmark, a currency backed by gold reserves.
When was the Rentenmark introduced?
1923
What were the positives of the Rentenmark?
Restored Germany’s faith in currency, later converted into the Reichsmark
What were the negatives of the Rentenmark?
Value not as much as dutschmark, attached to property rather than gold reserves.
What were the outcomes of the Young Plan?
Reparation figure was reduced from £6600 million to £1850 million and the length of time to pay reparations was extended to 59 years.
Why was Stresemann criticised for the Young Plan?
He was severely criticised by right wing politicians who objected to any further payment of reparations.
When was the Young Plan?
1929
How did Germany prosper with American money?
- Public works provides new stadiums, apartment blocks and opera houses.
- Big business had paid many of its debts and benefited from a period of industrial growth.
- There were fewer strikes between 1924 and 1929.
- Unemployment fell from 9 million (in 1926) to 6 million.
Why did Weimar not recover fully from hyperinflation?
- Weimar was still over dependent on American loans.
- Factory workers’ hours stayed the same whilst their wages rose, but not as fast as living costs
- The lower middle class did not fully recover from the savings they lost in 1923
- Farmers still experiences problems like worldwide agricultural depression, lack of modernisation, Farmers went into debts and product was still only 74% of pre-war levels.
What was the Locarno Pact?
Germany signed this treaty with Britain, France and Belgium.
What were Stresemann’s aims through the Locarno pact?
- Improve relations with France and Britain
- Restore Germany’s international prestige
- Gain France and Britain’s cooperation in reducing the worst parts of the Treaty
When was the Locarno Pact?
1925