Germany - 1.3.2 Economics & Politics in The Stresemann Era

Question 1

When was Gustav Stresemann Chancellor?

Answer 1

August - November 1923

Question 2

When was Gustav Foreign Minister?

Answer 2

1923-29

Question 3

How did Gustav stop hyperinflation? (4)

Answer 3

• To help stop hyperinflation, Stresemann called off passive (non-violent) resistance in the Ruhr
• November 1923: Stresemann set up the Rentenbank and issued a new currency called the Rentenmark
• Supply of these notes was tightly controlled. Their value was tied to the price of gold so it had real value. This encouraged more public confidence
• August 1924: the Reichsbank was given control of this new currency. It was renamed the Reichsmark. Hyperinflation was over

Question 4

What was The Dawes Plan? (3)

Answer 4

• Stresemann helped negotiate the Dawes Plan, which helped Germany pay their reparations (payments to the victors). In 1924, Charles Dawes, an American banker, designed a plan so Germany could pay its reparations
• In 1924, banks in the US loaned 800 million Reichsmarks to German industries
• Reparation instalments were temporarily made £50 million a year

Question 5

What was The Young Plan? (3)

Answer 5

• Stresemann next negotiated the Young Plan, which proposed to reduce German reparations. In August 1929, a committee, set up by the Allies and led by an American banker called Owen Young, proposed a plan
• The Young Plan reduced the total reparations debt from £6.6 billion to £2 billion
• The payments could be made over a longer time, up until 1988

Question 6

What was one positive thing about The Young Plan?

Answer 6

Lower reparations meant lower taxes for German people

Question 7

What was one negative thing about The Young Plan?

Answer 7

There was a lot of opposition, especially from the extreme political parties, like the Nazis, who felt it was extending the burden for future generations

Question 8

What stopped the Young Plan?

Answer 8

The Wall Street Crash

Question 9

How did The Wall Street Crash affect Germany?

Answer 9

• American banks had to recall loans made to Europe, undermining (reducing the effectiveness) of the Young Plan
• By 1933, 4 years after the Wall St Crash, world trade had fallen over by 60%. This got rid of any chance of German success through exporting (selling to other countries)
• German exports had risen 40% between 1925 and 1929

Question 10

In what way did the economy recover? (3)

Answer 10

• By 1928, industrial production levels were higher than they were in 1913
• Between 1925 and 1929, exports rose by 40%
• In 1927, the Weimar Republic set up a number of pension, health and unemployment schemes to help German society

Question 11

In what ways was the economy still insecure? (4)

Answer 11

• The economic recovery depended on American loans, so remained fragile
• Unemployment was still a big problem for Germany
• Germany spent more money on imports than they received on exports, a ‘trade deficit’
• The extreme political parties were completely against Germany paying the reparations at all

Question 12

When were pension, health and unemployment schemes created?

Answer 12

1927

Question 13

As well as helping the ____________ economy, Stresemann was crucial to Germany re-entering European politics.

Answer 13

domestic

Question 14

What were Stresemann’s key foreign policy achievements? (3)

Answer 14

• Locarno Pact
• League of Nations
• Kellogg-Briand Pact

Question 15

Because of his domestic and foreign achievements, the German population became more confident in the Weimar Republic. What did this mean for extremist parties such as the Communists and Nazis?

Answer 15

Their support for extremist parties, such as the Communists and Nazis, weakened

Question 16

Who was the Locarno Pact an agreement between? (4)

Answer 16

• Germany
• France
• Italy
• Belgium

Question 17

What was discussed in the Locarno Pact agreement? (3)

Answer 17

• Germany agreed to its new border with France, improving relations with the French
• The Allies and Germany agreed to the permanent demilitarisation of the Rhineland
• German membership of the League of Nations was up for discussion

Question 18

Why was the Locarno Pact a success for Germany? (4)

Answer 18

• It improved relations with France with the border agreement
• It was not imposed on Germany, unlike the Treaty of Versailles
• It increased the status and popularity of the Weimar Republic
• It helped boost confidence in more moderate political parties

Question 19

What was the League of Nations?

Answer 19

A new international body that hoped to discuss world problems in order to avoid resorting to war. It was set up in 1920 but Germany was initially excluded. In 1929, they were invited to join and become a member of the council

Question 20

Why was the League of Nations a success for Germany? (2)

Answer 20

• It showed that Germany’s views counted
• It boosted the confidence held by most Germans in the Weimar Government

Question 21

What was the Kellogg-Briand Pact?

Answer 21

This was an agreement between 62 nations. In this pact, countries agreed to disarm (give up to reduce armed forces) and not use war to resolve disagreements

Question 22

Why was the Kellogg-Briand Pact a success for Germany?

Answer 22

• It showed that Germany was once again a major power
• It showed that moderate political parties could build Germany’s strength internationally
• It increased public confidence in how Germany was being led

Question 23

What benefits did The Treaty of Rapallo bring? (2)

Answer 23

• The 1922 Treaty of Rapallo improved German-Russian relations
• Curiously, the Russian Communists agreed to allow the German army, the Reichswehr, to use Russian training camps which the USA, Britain, and France could not discover. This would allow the German army to train with tanks, banned under the Treaty of Versailles

Question 24

Despite these achievements, the Weimar Republic still faced limits to recovery. What were these? (5)

Answer 24

• The German population still resented the Treaty of Versailles and its League of Nations
• Some sectors of the economy (such as agriculture) saw little recovery
• The economy was dependent on loans
• Some Germans didn’t like the agreements
• Although support for extreme left and ring-wing parties had declined, the Communist and Nazi Parties still existed

Question 25

When did Germany and 62 other countries sign the Kellogg-Briand Pact?

Answer 25

1928

Question 26

The Dawes Plan meant that Weimar Germany relied on which country for loans?

Answer 26

The USA

Question 27

When did Germany join the League of Nations?

Answer 27

1926