Germany- the recovery 1924-29

Question 1

When did Gustav Stresemann come into power?

Answer 1

-1923

Question 2

What was the great coalition government?

Answer 2

-helped solve the problem of hyperinflation and brought important improvements in the economy

Question 3

What was introduced in November 1923?

Answer 3

-the new currency, the Rentenmark

Question 4

What was the value of the Rentenmark based on?

Answer 4

• Germany’s industrial and agricultural worth

- He promised to exchange the notes for shares if the currency failed which increased confidence

Question 5

What were introduced in 1924?

Answer 5

• a new independent bank called the Reichsbank

- the Reichmark, the new permanent currency

Question 6

What did Stresemann believe about Germany’s economy?

Answer 6

• Germany should accept the Treaty of Versailles to improve foreign relations
• wanted to negotiate better terms for Germany

Question 7

What were the key points of the Dawes plan?

Answer 7

• US loaned Germany 800 million gold marks
• reparations payments were lowered to 1,000 million marks for the first 5 years and then increased to 2,500 million
• allies agreed to review the payment rate over time, to take in Germany’s economy and ability to pay
• French agreed to withdraw troops from the Ruhr
• allies were given some control of the Reichsbank and railways in Germany

Question 8

In the Dawes plan, how much money did the US loan Germany?

Answer 8

-800 million Gold marks

Question 9

What were reparations lowered to due to the Dawes plan?

Answer 9

• 1,000 million marks for the first 5 years

- 2,500 million after

Question 10

What were the effects of the Dawes plan?

Answer 10

• some Germans thought that Germany was accepting the blame for the war by agreeing to continue with reparation payments
• helped restore Germany’s economy and led to further loans from the USA

Question 11

How much money did the USA loan Germany over the next 6 years?

Answer 11

-25 billion marks in loans

Question 12

How was Germany’s economy after 1924?

Answer 12

• recovered significantly and there was more investment in Germany from other countries (USA) which went to boosting industry and building factories
• industrial output doubled in the years 1923-29
• wages rose + cost of living went down + standard up
• confidence in economy restored, government built new roads, schools and public buildings

Question 13

What laws were introduced in 1927?

Answer 13

• allowed people to claim unemployment benefit

- ‘labour exchanges set up to help people still unemployed find work

Question 14

What were the risks of Germany relying on loans?

Answer 14

-if world economy had problems Germany’s economy would collapse again

Question 15

When was the Dawes plan introduced?

Answer 15

-1924

Question 16

When was the young plan introduced?

Answer 16

-1929

Question 17

What did the young plan do?

Answer 17

• reduced total reparations bill to $8 billion
• payments were to be made over 59 years, ($473 million per year)
• Germany was only obliged to pay 1/3 of the annual sum each year and pay the rest if they could afford

Question 18

When did the French agree to leave the Rhineland?

Answer 18

-June 1930

Question 19

Who created a petition against the young plan?

Answer 19

• Alfred Hugenberg

- managed to get 4 million signatures but only 14% voted against it at the referendum on Dec 1929

Question 20

Why did the young plan not work?

Answer 20

• in 1929=the wall street crash and America could not afford to loan any more money
• in 1931, Germany economy crashed

Question 21

When did Hitler come to power?

Answer 21

-1933

Question 22

What did Stresemann do to strengthen Germany’s power and wealth?

Answer 22

-diplomacy, improved relations with Britain and France by ending passive resistance in the Ruhr in 1923

Question 23

When did Germany sign the Locarno pact?

Answer 23

-1925

Question 24

Who did the Locarno pact involve? (6 countries)

Answer 24

-Germany, France, Britain, Belgium, Czech, Poland

Question 25

What did the Locarno pact involve?(3)

Answer 25

• Germany agreed to accept it’s new Western borders and all countries agreed to avoid military accept in self defence
• Germany agreed that Alsace Lorraine would be French and the French agreed not to occupy the Ruhr
• everyone agreed Germany’s eastern borders could be settled by peaceful means.

Question 26

What did Stresemann say about the Locarno pact?

Answer 26

• a victory because it made peace in Europe more likely

- said Germany was now being treated like an equal rather than being ordered around by European countries

Question 27

When did Germany join the league of nations?

Answer 27

-1926

Question 28

What was the Kellogg Briand pact?

Question 29

How many countries joined the Kellogg Briand pact in 1928?

Answer 29

-62 countries, including France, US and Germany

Question 30

What did the kellogg Briand pact show in terms of Germany?

Answer 30

• it was included among the main powers once again

- clear that the Weimar republic was respected, stable state

Question 31

How did Stresemann gain confidence when the Rentenmark was introduced?

Answer 31

-promised to exchange the notes for shares in German land or industry if the currency failed

Question 32

What was the foreign policy of Stresemann?

Answer 32

-to restore Germany’s power and prosperity using Locarno pact

Question 33

2 effects on Germany on Stresemann’s work to reorganise reparation payments.

Answer 33

• Germany recovered significantly
• Germany was open to risks if there were problems with world economy
• strengthened relations in Europe