Recovery of the WR

Question 1

When did Ebert appoint Gustav Stresemann as chancellor and foreign secretary of Germany?

Answer 1

August 1923.

Question 2

1919-23 were known as the ___ ___, and 1924-29 as the __ __.

Answer 2

“dark days”, “golden years”

Question 3

What did Stresemann do to help Germany recover? (8 things in total)

Answer 3

• Solved the Ruhr crisis
• Solved hyperinflation (new currency)
• Introduced Dawes Plan
• Introduced Young Plan
• Signed Locarno Treaty
• Germany joined League of Nations
• Signed Kellogg-Briand pact
• Restored political stability

Question 4

What was one of the first things Stresemann did, once appointed as chancellor?

Answer 4

Wanting Germany to be seen as less confrontational, he ordered workers in the Ruhr to stop striking against the French.

As the Germans were cooperating, the French and Belgian troops withdrew. German industry was able to start up again, helping the economy to recover.

Question 5

How did Stresemann tackle the issue of hyperinflation?

Answer 5

Under the orders of Charles Dawes, Stresemann had all of the old hyperinflated and devalued currency destroyed, introducing the Rentenmark as a temporary new currency in 1923.

In 1924, the newly independent national Reichsbank was given control of the Rentenmark, which became the Reichsmark.

Question 6

What was the importance of the Rentenmark?

Answer 6

It was a new currency Stresemann introduced to Germany, to replace the old one which had lost all value due to hyperinflation.

It translates as “pension mark”, which communicated that German people’s old age pensions were safe.

This helped to increase people’s confidence that the Weimar government was capable of looking after them.

The currency’s value was tied to the price of gold, ensuring that inflation couldn’t reoccur.

Question 7

When were the Rentenmark and Reichsmark currencies introduced?

Answer 7

1923, 1924

Question 8

What was the Dawes Plan?

Answer 8

A plan, designed in 1924 by Stresemann and US banker Charles Dawes, to resolve Germany’s shattered economy and inability to pay reparations.

Question 9

Detail 3 features of the Dawes Plan.

Answer 9

• US loaned $25bn to German industry from 1924-30.
• Germany used money generated by industry to repay reparations and loans (w/ interest).
• Reparations were temporarily reduced to 2.5bn Reichsmarks per annum.

Question 10

Give 2 positive impacts the Dawes Plan had on Germany.

Answer 10

1) Employment, trade and income from taxation increased.
2) Industrial output doubled from 1923-29, surpassing pre-war levels.

Question 11

Give 2 drawbacks of the Dawes Plan on Germany.

Answer 11

1) Germany’s fragile economic recovery depended on American loans, damaging nationalist pride.
2) Extreme political parties were furious that Germany had submitted once more to paying reparations.

Question 12

When was the Dawes Plan?

Answer 12

1924

Question 13

What was the Young Plan?

Answer 13

A plan, designed by Owen Young in 1929, which reduced reparations and lengthened the time required for Germany to pay. This meant that Germany had more money to spend on its industry and people.

Question 14

Detail 2 features of the Young Plan.

Answer 14

1) Reduced total reparations debt from £6.6bn to £1.85bn.
2) Germany was given a further 59 years to pay.

Question 15

When was the Young Plan?

Answer 15

1929

Question 16

What was a benefit of the Young Plan?

Answer 16

The lowered reparations debt and longer time to pay allowed the German government to lower taxes and invest more in industry.

Question 17

Give 3 drawbacks of / negative reactions to the Young Plan.

Answer 17

• Extreme political parties were incensed.
• There was still £50m to pay per year.
• This now stretched out until 1988 - Hitler said this was “passing on the penalty to the unborn”.

Question 18

What happened as a result of the Dawes Plan and Young Plan?

Answer 18

• The economic crisis of 1923 was ended
• Germany entered a time of prosperity
• People no longer faced starvation
• Industry grew by 40% from 1924-29
• Wages increased; striking began to stop

Question 19

What was the Locarno Treaty?

Answer 19

A pact, signed in 1925 by Germany, France, Belgium, Britain and Italy, wherein the countries agreed that their borders would not be tampered with.

Question 20

When was the Locarno Treaty signed?

Answer 20

1925

Question 21

What was set up in 1919?

Answer 21

The League of Nations. Germany was initially banned from joining it.

Question 22

When was Germany trusted enough to be allowed to join the League of Nations?

Answer 22

1925

Question 23

How did joining the League of Nations benefit Germany?

Answer 23

It increased Germany’s international respect, making the country a “great power” again.

Question 24

When did Germany sign the Kellogg-Briand pact?

Answer 24

1928

Question 25

What was the Kellogg-Briand pact?

Answer 25

Signed by 64 countries, it was a pact wherein they agreed that they could keep their armies for defence purposes, but agreed to solve future disagreements by peaceful means.

Question 26

How did Stresemann restore political stability to Germany?

Answer 26

He organised a coalition within the Reichstag in which decisions could be made efficiently and without massive dispute.

Germans began to have more faith in the Weimar government.

Question 27

You could make the argument that Stresemann was responsible for the vast recovery brought about in Germany during the Golden Years.

What would support a counterargument to this view?

Answer 27

• You could argue it wasn’t Stresemann himself who made it happen. Germany was very reliant on US loans to recover; this became apparent after the 1929 Wall Street Crash.
• Unemployment in Germany remained a problem.
• The middle class never fully recovered from hyperinflation; they resented the Weimar government for ignoring them.
• Farmers continued to struggle; their profits fell.
• Extreme nationalist hatred for the WR remained; the view was that Stresemann had given in to the French in the Ruhr.