4. Economic Recovery under Stresemann Flashcards
What was Stresemann’s job between 1923 and 1929?
Foreign Secretary
What post did he do between August and November 1923?
Chancellor
What two main economic problems did Stresemann face in 1923?
French occupation of the Ruhr (which led to) hyperinflation
What did Stresemann introduce in 1923?
A new currency, the Rentenmark
Why was the Rentenmark more trusted by the public?
It was issued in limited amounts and was linked to property, so it had real value
What was the Rentenmark changed to in 1924?
The Reichsmark
What was the Reichsmark backed by?
Gold reserves
What was the aim of the Dawes Plan (agreed in 1924)?
To reduce reparation payments to manageable levels.
What were the main points of the Dawes Plan (agreed in 1924)?
- Reparation payments would begin at 1 billion marks for the first year and increase over a period of 4 years to 2.5 billion marks - The Ruhr area was to be evacuated by Allied occupation troops. (This happens in 1925)- The German Reichbank would be reorg
How much was the first loan given to by the USA to Germany?
800 million marks
How much did US companies and banks give to Germany over the from 1924-29?
$3000 million (allowed Germany to recover and make its reparation payments)
What did the Young Plan reduce the reparation figure from and to?
It reduced the figure from £6600 million to £1850 million
What happened to the length of time over which the Germans had to pay
It was extended by 59 years
What were the average yearly payments under the Young Plan?
2.05 billion marks per year
Why did Hitler and other right-wingers object to the Young Plan?
They objected to any further payment of reparations (Hitler wanted to scrap ToV)
