Gustav Stresemann- Problems and Solutions

Question 1

What were the events of 1923 that led to hyperinflation?

Answer 1

1. Germany defaulted on payments of the Treaty of Versailles (could not afford it), which caused the French and Belgian troops to march into the Ruhr and take control of the factories
2. German workers responded with passive-resistance and refused to work- this made Germany poorer because they were now losing produce and raw materials.
3. The German government decided to print more money to reparations and this caused the value of money to decrease dramatically.
4. Hyperinflation occurs

Question 2

Who was Gustav Stresemann?

Answer 2

The Chancellor of Germany.

Question 3

What were Stresemann’s policies?

Answer 3

1. To introduce new currency- the Retenmark- and stop hyperinflation.
2. Persuade the French to leave the Ruhr
3. Improve Germany’s relations with other countries
4. Continue to pay reparations
5. Get help to rebuild economy

Question 4

How did Stresemann end hyperinflation?

Answer 4

1. He introduced the Retenmark, which was quickly accepted
2. Hyperinflation was brought under control
3. However, public still blamed govt., felt cheated and did not forget.

Question 5

How did Stresemann persuade the French to leave the Ruhr?

Answer 5

1. He called off the passive-resistance strike by workers because it was causing economic problems and the French were still not leaving
2. Promised to continue paying reparations
3. The French eventually left the Ruhr
4. However. it was an unpopular policy, had lots of right-wing opposition, and people believed Stresemann had ‘given in’ to the French which was a sign of a weak govt.

Question 6

How did Stresemann improve relationships with other countries?

Answer 6

1. Co-operated with European countries and hoped that the Allies would change the TOV by doing so
2. Signed the Locarno Pact in 1925 (Britain, France, Belgium and Italy) in which they promised not to invade each other
3. Joined the League of Nations in 1926
4. He was awarded the Nobel Peace Prize in 1926

Question 7

How did Stresemann set about continuing to pay reparations?

Answer 7

1. Realised he could not force the Allies to change the TOV so promised to pay (hoped Allies would lower payments in the future)
2. 1924- Dawes Plan which reorganised the way Germany payed and gave them longer to pay
3. 1929- Young Plan- lowered amount they had to pay (132 000 million marks to 37 000 million)

Question 8

How did Stresemann rebuild the economy?

Answer 8

1. Organised big loans from USA as part of Dawes Plan (1924)
2. Used money to improve housing, hospitals, schools and roads
3. Loans given to private German firms
4. US firms set up in Germany
5. Pensions and wages rose for some

Question 9

What were the bad things about Stresemann’s way of rebuilding the economy?

Answer 9

1. Now very dependent on the US economy
2. Wages did not rise for everyone-farmers lost out as food prices did not increase- began supporting right-wing extremist groups who said they would support them
3. Unemployment did not fall below 1 million
4. The rich had to pay higher taxes- complained the govt. was spending too much money on poor and unemployed

Question 10

What were the negatives about Stresemann’s policy to continue paying reparations?

Answer 10

1. Opponents of the Weimar Republic called the Dawes Plan ‘a second Versailles’ as it did not lower payments
2. Young Plan was also hated by those who thought that Germany should not pay at all.