Dawn of the golden age

Question 1

What issues were the Weimar government facing by 1923?

Answer 1

• Hyperinflation
• 11th Jan 1923 - 25th Aug 1925
  Occupation of the Ruhr
• 9th Nov Munich Putsch

Question 2

Which chancellor’s government collapsed and when?

Answer 2

Aug 1923 and Wilhelm Cuno

Question 3

Who replaced the old chancellor?

Answer 3

Gustav Stresemann

Question 4

What did Stresemann create?

Answer 4

‘The great coalition’
- It was the first coalition to
include parties from the left
and right.
(DVP, Centre, DDP,SPD)

Question 5

What was Stresemann’s three key steps to end hyperinflation?

Answer 5

• End of passive resistance
• Issue of new currency
• Balance of budget

Question 6

When was passive resistance in the Ruhr called off?

Answer 6

September 1923

Question 7

What did the end of passive resistance lead to?

Answer 7

The Munich Putsch

Question 8

What was the impact of ending passive resistance?

Answer 8

They stopped paying the resisting worker
- As a result it helped
government saving
- Crucial in stabilising the
government
- Reduces money printing

Question 9

When was the new currency created?

Answer 9

November 1923

Question 10

What new currency was created?

Answer 10

The Rentenmark replaced the Reichsmark.

Question 11

What supported the Rentenmark and why?

Answer 11

The mortgage on all industrial and agricultural land
- This is due to no gold to back it
up.

Question 12

What is 1 Rentenmark compared to Reichsmark?

Answer 12

1 Rentenmark = 1 trillion Reichsmark

Question 13

Why was creating a new currency important?

Answer 13

This would allow Germany to start anew and tackle their reparation debt without the worry of hyperinflation.

Question 14

How was the new currency managed?

Answer 14

• Gov controlled how much was
  in circulation
• Old marks were gradually
  collected in

Question 15

What happened in August 1924?

Answer 15

The Rentenmark became the new Reichsmark

Question 16

What was the Rentenmark no back by after Aug 1924?

Answer 16

Gold reserve (30% of RM value to guarantee stability).

Question 17

What was a weakness of the new Rentenmark?

Answer 17

Those who lost servings with the collapse of the old Reichsmark gained nothing from the new currency.

Question 18

Who monitored the new currency?

Answer 18

Hjalmar Schacht

Question 19

How did they balance the budget?

Answer 19

• The gov cut spending and
  raised taxes for people and
  companies.
• ## Gov employee salary cut

Question 20

What was a weakness of the budget balance?

Answer 20

• 300,000 civil servants lost their
  jobs
• Weaker companies that relied
  on credit crumbled.

Question 21

What are the strengths of the budget balance?

Answer 21

• Gov debt fell
• well managed companies were
  careful not to build up too
  much debt and so prospered

Question 22

The number of bankrupt companies

Answer 22

1923 = 233
1924 = 6000+