2. The recovery of Germany 1924-29 Flashcards
Who was Gustav Stresemann
He was the chancellor of Germany for 4 months in 1923 and then became foreign secretary until his death in October 1929
What did Stresemann do to solve hyperinflation
- In November 1923 he introduced a new temporary currency called the Rentenmark
- In 1924 a new independent bank the Reichsbank was handed control of the new currency and in the same year the Reichsmark replaced the Rentenmark as a permanent currency
Why did people trust the rentenmark
It was valued against Germanys industrial and agricultural worth so if the currency failed people were promised shares in German agriculture or land
What were the effects of the Reichsmark on Germany
It restored faith in the German financial system and allowed Germanys economy to grow stronger
When was the Dawes Plan introduced and who made it
1924
Charles Dawes and Stresemann
What is the Dawes Plan
It was a agreement between Germany and the Allies that meant America loaned $2.5 billion to Germany which would allow Germany to repay their war reparations to the allies and the allies would then be able to pay off their own war debts to America
What were the terms and conditions of the Dawes Plan
- Payments were lowered to 1,000 million marks for the first 5 years and then it would be 2,500 million
- The French agreed to withdraw troops from the Ruhr
- The Allies were given some control of the Reichsbank and the railways in Gwermany
What were the Dawes Plans effect on Germany
- The German economy recovered significantly after 1924
- the stability in currency meant more investment in Germany from other countries e.g. USA
- Wages rose and the cost of living wen down
- Government built new roads and schools
- By 1927 people could claim unemployment benefits
When was the Young plan introduced
1929
Why was the Young Plan introduced
Despite the Dawes plan and American loans Germany was still struggling to pay reparations. So the young plan was introduced
What was the Young Plan
- The total reparations bill was reduced to $8 billion dollars
- the payments were to be made over 59 years at a rate of $473 million per year
- Germany was only obliged to pay a third of the annual sum and it should pay the rest if it could afford to do so
- The French agreed to leave the Rhineland by June 1930 - 5 years ahead of time
What was the effect of the Young Plan on Germany
- Government were able to reduce taxes
- Government now had funds to boost Germanys industry and create jobs for workers
- Many people opposed the Young Plan as they felt the timescale would limit Germanys progression as a nation
- The Young plan came to nothing in the end because of the Wall Street Crash
When was the Locarno Pact signed?
1925
What countries were part of the Locarno pact
Germany, France, Belgium, Italy, Britain, Czechoslovakia and Poland
What were the terms and conditions of the Locarno Pact
- Germany agreed to its new Western borders
- Agreed to avoid military force (*except in self defence)
- Germany agreed Alsace-Lorraine would be French and the French would not invade the Ruhr
- Germany’s Eastern borders were to be settled by the League of Nations
What were the effects of the Locarno pact on Germany
- The Pact was seen as a Victory because peace in Europe was more likely and Germany was treated as an equal in Europe
- Some nationalists were unhappy with the pact as Stresemann was accepting the terms of the Treaty of Versailles especially about the German borders
- The pact did lead to a great improvement in relations between Germany and other powers
When did Germany join the League of Nations
1926
What was the League of Nations
The League of Nations was a new international organisation which allowed powerful countries to solve world problems without using military force but Germany was not initially invited
what power did Germany hold in the League of Nations
Germany was placed on the council which allowed Germany to make important decisions with other European powers
What impact did joining the League of Nations have on Germany
- Joining the League increased Germany’s confidence in the Weimar Regime, as Germany was once again accepted in the international family
- Some Germans saw joining the League as a symbol of the Treaty and wanted Germany to have nothing to do with it
When was the Kellog-Briand Pact signed
August 1928
What is the Kellog-Briand pact
62 countries including Germany, France and the USA signed a pact with the name to prevent future war.
The countries had to promise not to use military force to settle disagreements
What was the impact of the Kellog-Briand pact on Germany
- The Pact showed improvement in international relations
- The Weimar Republic was now a respected stable state
- It gave the German public more confident that moderate political parties could be trusted to make Germany great again
What were Stresemann’s domestic policies
- Rentenmark
- Dawes Plan
- The Young Plan
