Section 1.4 - Stresemann and stability 1924-1929

Question 1

1923

Answer 1

• End of passive resistance and introduction of the rentenmark
• Rentenmark stabilised economy after hyperinflation

Question 2

Dawes Plan

Answer 2

• 1924
• Ended France’s occupation of the Ruhr
• decreased the reparations payments in return for allied supervision of the economy and banks
• Germany received a sizeable loan of 200 million from the US which helped restart the ravaged economy

Question 3

Locarno Pact

Answer 3

• 1925
• France promised to not invade the Ruhr again in return for Germany giving up any claims to French territories such as Alsace Lorraine
• Germany could now enter the League of nations, helping it once again receive a sense of nationalism and pride

Question 4

Young plan

Answer 4

• 1929
• Germany’s total reparations cost would be reduced to 1.85 Billion (over 2 thirds)
• Allied troops exited Germany and their precious resource production was restored

Question 5

Stresemann’s approach to foreign policy

Answer 5

• advocated and followed the fulfilment policy, pioneered by Rathenau, to lessen harsh treaty terms by slowly building relations
• Angered the extreme right who were vengeful towards the powers who had implemented these terms

Question 6

Economy under Stresemann

Answer 6

Germany was extremely attractive to foreign investors so managed to financially recover however:

• Its economy was dependent on outside economies and investments
• Farmers suffered with debt and hated the republic due to the lack of support from the economy
• Strikes and lock outs were frequent due to friction between unions and employers
• Government spent more than it earned so this could not be kept up indefinitely without consequence

Question 7

Unemployment insurance act

Answer 7

1927

Question 8

Political stability under Stresemann

Answer 8

• No longer extreme conditions for extreme parties to gain support from hard times
• However Germany remained unstable through middle class disillusionment with the government, from such things as the Unemployment act and local government house building, which alluded to them that the interests of the working class were placed above theirs
• Clashes between the SA and the communists to try and destabilise the government were extremely common