Overcoming the Challenges to the Weimar Republic (1924-29) Flashcards
What was the period from 1924 to 1929 in Germany described as, and why?
- The Golden Years of the Weimar Republic
- The political situation was relatively stable; there weren’t any attempts to overthrow the government, or any major political assassinations
List 6 things Stresemann (and the government) did in 1923 to deal with hyperinflation.
- They used emergency decrees to fix rents, wages and prices
September: - He called off passive resistance in the Ruhr
October: - The Rentemark would replace the mark as a temporary measure
- A limit was set on how much would be printed
- They set up state arbitration boards for industrial disputes
November: - Ban of the use of emergency money
List 3 further actions taken by the government in 1924 to deal with hyperinflation.
- The new Reichsmark was introduced, which was on the gold standard, and replaced the Rentenmark
- Debts were revalued against the Reichsmark
- Negotiations for the Dawes Plan began, and it then came into force
Who was put in charge of the introduction of the Rentenmark and the Reichsmark?
- Hjalmar Schacht
Who was Hjalmar Schacht?
- He was President of the Reichsbank from December 1923
What did businesses do during hyperinflation, and why?
- In 1924 there were more bankruptcies than the previous 5 years combined
- The surviving big businesses formed cartels; they set prices for their industry, which helped stabilise the economy
How did Stresemann’s role change?
- In November 1923, his government collapsed, so he was replaced as chancellor
- He became foreign minister, and was very effective in this role
What were 3 reasons why Stresemann called off passive resistance in the Ruhr? What was this tactic known as?
- He saw that it wasn’t effective, so he decided to meet the French’s terms instead
- Stresemann was aware that the occupation of the Ruhr had won Germany sympathy internationally, and wanted to use that to negotiate a better deal for Germany
- As workers in the Ruhr no longer had to be paid, there was less of a need to print more money
- Stresemann’s tactic was known as ‘fulfilment’
Give 2 other examples of ‘fulfilment’.
- 1925 Locarno Pact: Germany accepted its western borders (but not its eastern ones)
- 1928: Kellogg-Briand Pact: Germany and other countries outlawed war
What was another treaty that Stresemann signed that was very important? Who did he sign it with, and when?
- Treaty of Berlin in 1926 with Russia
Why was the Treaty of Berlin so important?
- It allowed Germany to secretly rearm in Russia
Why did Stresemann decide to use a policy of ‘fulfilment’ to improve Germany’s economic situation?
- He knew the USA and Britain wanted Germany’s economy to recover
- He therefore knew he could undermine the Treaty of Versailles through economics, which can be seen through the Dawes Plan (for example, the USA wanted the German economy to be successful so that their loans would be repaid and their investments wouldn’t be jeopardised)
List 5 aspects of the Dawes Plan.
- The sum fixed in 1921 (132 billion gold marks) was confirmed
- Over 5 years, reparations would rise from 1,000 million to 2,500 million, and would then vary according to economic performance
- The Allies agreed that they could only decide on sanctions together (after the occupation of the Ruhr)
- Germany were given a 800 million mark loan to stabilise their currency
- It was seen as temporary
What situation did the Dawes Plan create globally?
- Germany used US loans to pay back Britain and France
- Britain and France used this money to pay back their war loans to the USA
- This was a continuous cycle
What were 2 impacts the Dawes Plan had in Germany?
- It helped economic recovery, and Germany was therefore able to pay reparations
- They received more than they needed to pay in reparations, so the government invested the excess money in industry