History - Chapter Two: 1923 Flashcards
What did the French do when Germany defaulted [didnt pay]?
When Germany defaulted, the French invaded Germany’s most important industrial areaa, the Ruhr in order to teach Germany a lesson and make up for the money not payed. The workers in Ruhr went on strike which damaged the economy even more. In a hope to get more money, the Weimar printed more money to pay
What were the effects of the Hyperinflation following the French invasion of Ruhr?
The Hyperinflation following the French invasion of Ruhr caused many problems:
Lost faith in the government
Hate on Jews, as they kept their money mostly in foreign banks so were unaffected
Value of money to go down
The Middle class started supporting extremists as their money was worthless
The Pensioners were badly affected as savings were useless
People like Hitler saw it as a chance to overthrow the government
Who was Gustav Stresemann?
Gustav Stresemann was the chancellor in 1923, and was one of the most capable politicians in the Weimar
How did Gustav Stresemann help solve the crisis[es] of 1923?
Gustav Stresemann helped solve the crisis[es] of 1923 by implementing various strategies:
He sent the workers in Ruhr back to work for the French, meaning more oney could be earned and helping the economy get back on its feet
He brought in a new currency called the Renten [temporary] Mark, and stopped the government printing money
He took out a loan from the USA called the Dawes plan, which gave Germany money to recover, and restructured the payments so that they were smaller but over a longer period of time
He signed the Locarno pact, to never use violence to settle a dispute again, and in exchange for another loan, agreed to the TOV in whats called the Young Plan
What were the problems with Stresemann’s solutions?
Stresemann’s solutions only went so far:
Sending the workers back to work for the French in Ruhr was seen as weakness, or ‘surrender’
Even though the Renten Mark helped the economy, the damage had already been done and people had already lost half their life savings
The Dawes Plan meant that the USA could call in the debt at any moment
The reparations wer still far too much to be paid
the Young Plan meant Germany had to finally agree to the TOV
