Recovery Of The WR 1924-29 Flashcards
When was Dawes Plan agreed on ? When did it come into effect ?
August 1924
September 1924
Why was Dawes Plan a thing ?
Stresemann realized Germany would never be able to pay the reparations
Name the points in the Dawes Plan
Change payment terms - 1billion marks and then increase in 4 years 2.5 billion marks
Ruhr area was evacuated by allied occupation in 1925
German bank was reorganised under Allied supervision
USA would give loans to Germany
When was the temporary currency introduced ? Rentenmark
November 1923
What was the Rentenmark based on ?
Property values rather than gold reserves
What was introduced the following year?
Permanent currency - Reichsmark
Backed up by gold reserves
Why was the Young Plan made ? When ?
1929
Even though Germany was able to pay the new reparations altered by Dawes Plan - German government still complained about the level of payments
Who came up with The Young Plan ? What were the terms?
US banker - Owen Young
Reparations were decreased by 60% - 1.850 million
Length of time was extended to 59 years
Why was Stresemann criticized for the Young Plan?
Right wing politicians (Hitler) objected any further payment of reparations especially when they were extended to 1988
What happened during 1924 and 1929 politically?
less support for extremist groups ( Nazis ) due to economic recovery and successes abroad
More support for the parties that supported the Weimar Republic
Greater political stability
Political stability was due to…
Gustav Stresemann - successes abroad - very popular
Paul von Hindenburg - war leader 1914-18
When did Paul von Hindenburg become president?
1925
Discuss the extend of recovery
Germany economy flourished due to USA loans
Less strikes - better relations between workers and employers
Over dependence on USA loans - they could quickly ask for it back which would lead to economy collapse
Unemployment increased - peak in 1926
Lower middle class did not fully recover from hyperinflation because the Weimar government was more worried about larger businesses rather than small ones
Farmers need to modernize their equipment to stay competitive - no money
Locarno Pact. Why did Stresemann want to improve relations with France and Britain?
In order to restore Germany’s international prestige
Gain their co-operation in reducing the worst features of the TOV such as the reparations
Which countries signed the Locarno Pact?
Britain
France
Belgium
Italy
