Recovery under Stresemann Flashcards
What was Stresemann’s policy of Erfüllungspolitik (fulfilment)?
To fulfil the terms of the Treaty of Versailles to improve relations with the Allied countries and negotiate better terms
What was the name of the bank Stresemann set up in November 1923?
The Rentenbank
What was the name of the new temporary currency introduced by the Rentenbank?
The Rentenmark
How many marks was one Rentenmark worth?
A thousand billion
How many Rentenmarks was the supply limited to?
3,200 million Rentenmarks
What was the value of the Rentenmark linked to?
The price of gold
Who/what backed the Rentenmark, ensuring the currency had real value?
German industrial plants and agricultural land
What happened to the price of the weekly newspaper, Berliner Illustreiter Zeitung, as a result of the introduction of the Rentenmark?
Went from 1 billion marks to 20 pfennigs (0.2 Rentenmarks)
What was the name of the bank that was given control of the Rentenmark in August 1924?
The Reichsbank
What did the Reichsbank rename the Rentenmark?
The Reichsmark
What did the Reichsmark bring an end to?
Hyperinflation
When was the Dawes Plan agreed?
April 1924
What was the aim of the Dawes Plan?
To resolve Germany’s non-payment of reparations
How much were reparations payments reduced to in the Dawes Plan?
£50m per year
How much did US banks agree to loan to German industry between 1924 and 1930, as a result of the Dawes Plan?
$25 billion (800 million marks)
What did the French do in response to the Dawes Plan?
Left the Ruhr
What did the Dawes Plan state about sanctions for non-payment of reparations in the future?
They had to be agreed by all Allies, not France alone
What happened to Germany’s industrial output between 1923 and 1928 as a result of the Dawes Plan?
It doubled (and passed pre-First World War levels)
Why were the extreme political parties opposed to the Dawes Plan?
It meant Germany agreed to pay reparations (giving credibility to the hated Treaty of Versailles)
Why did the Dawes Plan arguably lead to a fragile economic recovery?
It was dependent on American loans, which could be recalled at any time
What two things did the Young Plan do to German reparations?
1) Reduced the total amount from £6.6 billion to £2 billion
2) Gave Germany a further 59 years to pay (until 1988)
What impact did lower reparations payments have on the government?
Allowed them to lower taxes on ordinary Germans, giving them greater spending power
Explain the ‘virtuous cycle’ of economic growth created by the Young Plan
Lower reparations payments = lower taxes = more spending power = German industry makes more money = more jobs available = more spending power etc.
What did Adolf Hitler say about the Young Plan?
It was “passing on the penalty to the unborn”: future generations would pay for the mistakes made by previous ones
What percentage of Germans voted in favour of the Young Plan in a referendum held in 1929?
85%
Where did the French leave as a result of the Young Plan?
The Rhineland
What agreement did Stresemann sign in October 1925?
The Locarno Pact
What did Stresemann accept as part of the Locarno Pact?
Germany’s borders with France, including Alsace-Lorraine remaining French
What was discussed for the first time during the Locarno Pact negotiations?
German membership of the League of Nations
What did Stresemann receive in 1926 as a result of the Locarno Pact?
The Nobel Peace Prize
What happened to Stresemann’s position in Germany as a result of the Locarno Pact?
It became stronger: more confidence of Germans in the moderate political parties
Why did the Nazis oppose the Locarno Pact?
It confirmed the borders set out in the hated Treaty of Versailles
Why did Stresemann think it necessary to sign the Locarno Pact?
By fulfilling the terms of the Treaty of Versailles, France would accept changes in reparations payments
What was the League of Nations?
An international body set up after the First World War that discussed ways of solving the world’s problems without resorting to war
When did Germany join the League of Nations?
September 1926
As well as the League of Nations, what else did Germany join in September 1926?
The League of Nations Council, which took the most important decisions of the League
What did joining the League of Nations mean for Germany’s international standing?
It improved - Germany was being treated as an equal partner in Europe
Why did the Nazis oppose German membership of the League of Nations?
They saw it as a symbol of the Treaty of Versailles
How many countries joined Germany in signing the Kellogg-Briand Pact in August 1928?
61
What was the purpose of the Kellogg-Briand Pact?
States would not use war to achieve foreign policy aims
Why did the USA help create the Kellogg-Briand Pact?
It was not in the League of Nations and saw this as a way of assisting peace in Europe
