Chapter 5 (NOT FINAL) Flashcards
When was the hight of the hyperinflation crisis?
August 1923
What was Gustav Stresemann’s coalition called?
The great coalition
Why was Stresemann’s coalition called the great coalition?
Because it was the first to include parties from both the left and right.
How long was Stresemann chancellor for?
102 days
What was Stresemann’s priority?
To bring inflation under control.
What three steps did Stresemann do to bring inflation under control?
- End passive resistance
- Issue a new currency
- Balance the budget
When did Stresemann call of the policy of passive resistance?
September 1923
When was a new currency introduced?
November 1923
What was the new currency?
Rentenmark
What was the old currency that was replaced called?
Reichsmark
At what rate was the old currency exchanged for the new one?
1 new Rentenmark for 1 trillion Reichsmarks.
When did the new Rentenmark completely replace the Reichsmark by?
August 1924
Who directed the issuing of a new currency?
Hjalmar Schacht
How did Stresemann’s government balance the budget?
They cut expenditure and raised taxes.
What happened government employees as part of balancing the budget?
Salaries of government employees were cut and 300,000 civil servants lost their jobs.
Who did not gain from the introduction of a new currency?
Those who had lost their savings in the collapse of the old currency.
How many companies went bankrupt in 1923 compared to 1924?
- 1923: 233
- 1924: over 6000
When did Stresemann request the Allies set up a committee to address Germany’s repayment concerns?
November 1923
Why did the USA want Germany to be able to pay reparations to France?
Because that money would then be used by France to pay USA loans.
Who chaired the committee that addressed Germany’s repayment concerns?
Charles Dawes
When was the Dawes Plan accepted by both Germany and the Allies?
July 1924
What 3 things did the Dawes Plan do?
- Confirmed the original reparations payment of £6.6 billion.
- It reduced the amount Germany had to pay each year until 1929.
- The USA would loan Germany 800 million marks to invest in infrastructure and help the Germany economy.
How did Stresemann refer to the Dawes Plan?
‘no more than an economic armistice’
What were the 2 benefits of the Dawes Plan?
- The Allies accepted Germany’s problems with repaying were real.
- The loans granted allowed for machinery, factories, houses, and jobs to be created and the economy rebuilt.
When did wages begin to rise?
1924
How many new homes were built in 1925 as a result of the economic recovery and loans?
179,000
How many strikes were there in 1924?
1973
How many strikes were there in 1930?
353
What reason was in part responsible for the drop in strikes?
The introduction of compulsory arbitration
What is compulsory arbitration?
When both sides of an industrial dispute agree to let an independent third party agree on a solution.
When was compulsory arbitration made law?
1924
What happened to wages every year after 1924?
The real value of wages increased.
How much did wages increase in 1928?
12%
What did Stresemann say about Germany’s economic position in 1929?
‘The economic position is only flourishing on the surface. Germany is dancing on a volcano.’
What was the unemployment level by the end of 1925?
1 million
What was the number of unemployed by March 1926?
3 million
What were the 3 reasons for the large number of unemployed?
- There were simply more people seeking work.
- There were public spending cuts.
- Companies were cutting their workforces to make savings.
Who did not enjoy the wage rises of the industrial sector?
White-collar workers.
Who did not benefit from the economic golden age?
- The Mittelstand
- Farmers
What had happened to white-collar and blue-collar workers by the late 1920s?
Blue-collar workers’ wages had drawn level with - and even overtaken - white-collar workers.
What external factor led to farmers struggling to make a profit in the golden years?
There was a worldwide agricultural depression and grain surplus in 1925-26.
What level was German agricultural production at by 1929?
It was less than ¾ of its pre-war level, showing that there had certainly been no economic recovery for them.
Why was the ease with which farmers could borrow money after 1923 a problem?
It just saddled them with more and more debt at a time when prices were falling meaning they could not keep up repayments.
When did the French and Belgians leave the Rhur?
By 1925
Why did the French and Belgians leave the Ruhr?
Because with the Dawes Plan it was clear Germany would start making reparation payments again.
When was did the committee meet in Paris to decide on a final settlement for reparations?
1929
What did the Young Plan do?
- Required Germany to continue paying reparations until 1988.
- Reduced the total amount of reparations from £6.6 billion to just £1.8 billion.
- Increased the annual amount Germany had to pay.
- All foreign control over reparations ended.
With the advent of the Young Plan, when did Britain and France agree to withdraw all their troop from the Rhineland by?
June 1930
What was the response of the Right to the Young Plan?
They launched a nationwide campaign against it.
Who led the nationwide campaign against the Young Plan?
Alfred Hugenberg, leader of the DNVP.
What did the campaign against the Young Plan lead to?
They drafted the Freedom Law and demanded it be put to a referendum.
What did the freedom law state?
- That the government must reject the war-guilt clause.
- Demand the immediate evacuation of all occupied areas.
- Any minister who signed the Treaty of Versailles to be tried for treason.
Although the referendum on the freedom law was rejected, how many people voted for it?
5,825,000 - 13.8% of the electorate.
Who was given a leading role in the campaign against the Young Plan?
Adolf Hitler - making his breakthrough as a national political figure.
When did Alfred Hugenberg become leader of the DNVP?
1928
When was the Young Plan formally accepted?
January 1930 (it was finalised in August 1929 though)
