Economic Loans

Question 1

Replacing the currency

Answer 1

The Rentenmark, introduced to deal with hyperinflation, was replaced by the Reichsmark in 1924

Question 2

Control of inflation

Answer 2

Controlled by limiting money supply and keeping interest rates high

Question 3

Dawes Plan

Answer 3

financial deal with Charles Dawes from the US

1924

Question 4

Terms of the Dawes Plan

Answer 4

• Reparation would be 1,000 million marks, then after 5 years it would increase to 2,500 million, and then at varying levels dependent on Germany’s economy
• allies maintained control of railways, Reichsbank and customs duties
• Germany given 800 million mark loan from US banks to help stabilise the currency after hyperinflation

Question 5

Backlash to the Dawes Plan

Answer 5

German right wing - against war guilt and reparations

Dawes plan achieved nothing in their opinion

Question 6

Other economic agreements that helped Germany

Answer 6

Franco-German agreement - potash and aluminium

European co-operation - raw materials production

Question 7

Young plan - background

Answer 7

It became clear that Germany was unwilling to pay the amount go reparations set out by the Versailles treaty
Dawes plan helped Germany but it wasn’t a permanent solution

Question 8

Young plan - terms

Answer 8

• reduced the amount of reparations by 20%

- reparations would continue until 1988 in theory

Question 9

Wall Street Crash - effect on Young plan

Answer 9

Young plan didn’t properly come together due to the Wall Street Crash of 1929
The money which supported the plan was recalled