Germany: Chapter 2 [The Recovery of Germany]

Question 1

STRESEMANN AND THE GREAT COALITION GOV [1923]

Answer 1

• Stresemann = Chancellor
• urgent hyperinflation reduced
• unemployment decreased, houses built and transport invested in

Question 2

THE RENTENMARK [NOV 1923]

Answer 2

• temporarily introduced
• value based on industry and agriculture
• shares in both promised if currency failed
• 1924: Reichsbank took tight control over printing
• 1924: Reichsmark introduced

Question 3

US LOANS AND ECONOMIC RECOVERY

Answer 3

• Stresemann believed in foreign relations to renegotiate reparations
• worked to befriend Allies [hated idea]
• turned to USA
• USA loaned to Germany under Dawes and Young Plan
• Germany paid GBR and France
• GBR and France repaid war loans to USA

Question 4

DAWES PLAN [1924]

Answer 4

• USA’s Charles Dawes
• reparations reduced to 1,000 million marks for first 5 years [after to be 2,500 million marks]
• USA loaned 800 million industry-boosting gold marks
• Allies agreed to review reparations
• French agreed to withdraw troops from Ruhr and Allies promised to deal with future missed payments together
• Allies given some control of Reichsbank and railways

Question 5

EXTENT OF ECONOMIC RECOVERY

Answer 5

• till 1929 industrial output doubled
• nations invested in Germany causing wage increase, cost of living decrease and standard of living increase
• economic confidence restored by new roads, schools and buildings
• unemployment had unemployment benefits and labour exchanges
• BUT foreign investment left nation vulnerable
• 1927: economy slowing and farming industry struggling
• 1929: Wall Street Crash

Question 6

THE YOUNG PLAN [1929]

Answer 6

• reparations reduced to $8 billion
• payments to be made over 59 years [$473 million annually]
• only obligated to pay 1/3 of annual sum
• French agreed to leave Rhineland 5 years earlier [1930]
• reduction of annual reparations payments reduced taxes and allowed funds to be released to German industry, creating jobs
• BUT Nationalists hated reparations
• Hagenberg’s anti-Young Plan petition gained 4 million signatures
• only 14% voted against Plan in referendum though
• 1931: economy crashed and Allies suspended reparations

Question 7

STRESEMANN’S SUCCESSES ABROAD

Answer 7

• used diplomacy to gain German power and wealth
• improved relations with GBR and France by ending 1923 passive resistance in Ruhr
• wanted 3 things: tolerable reparations, protection of 10-12 million Germans living under foreign control and readjustment of Eastern Frontier [recovery of Danzig and Polish Corridor and correction of Upper Silesian frontier]

Question 8

THE LOCARNO PACT [1925]

Answer 8

• collection of 7 treates [GBR, France Poland etc.]
• Germany accepted new Western borders and agreed no military force unless in self defence
• no more French occupation of the Ruhr as Alsace-Lorraine was already French
• Eastern borders to be settled peacefully [Germany, Poland and Czechoslovakia promised to work with League]
• won Nobel Peace Prize in 1929
• 1925-1929: dubbed ‘Locarno Honeymoon’
• BUT nationalists thought diplomacy a weakness and refused to pay reparations
• Germany still weaker than Allies
• Weimar support was still limited
• national was vulnerable relying on American loans

Question 9

LEAGUE OF NATIONS [SEP 1926]

Answer 9

• Stresemann negotiated Germany’s way in
• confidence in Weimar increased
• BUT nationalists hated this as they associated League with TOV

Question 10

KELLOG-BRIAND PACT [ AUG 1928]

Answer 10

• US Secretary of State and French Foreign Minister
• 62 countries involved
• prevented future war by promising no military force to settle disagreements
• gave Germans confidence in moderate parties
• Germany now among main powers and Weimar Republic was respected and stable