Stresemann and recovery 1924-29

Question 1

Who was Gustav Stresemann?

Answer 1

Appointed Chancellor and Foreign Secretary by Ebert in 1923. Resigned as Chancellor at the end of 1923 but remained Foreign Secretary until 1929.

Question 2

What were Stresemann’s aims?

Answer 2

• to stabilise the political and economic situation in Germany
• to gain respect for Germany from other countries

Question 3

How did Stresemann tackle the problem of hyperinflation?

Answer 3

November 1923- set up new state-owned bank called the Retenbank, which issued a new currency called the Retenmark - temporarily replaced the worthless old currency. Issued in limited amounts based on property values.

Question 4

What happened to the Retenmark in 1924?

Answer 4

In 1924, it was converted into the Reichsmark (based on gold reserves).

Question 5

What were the positives of the Retenmark?

Answer 5

The new currency restored faith in the German currency.
It helped the economy to recover as other countries were once again willing to trade with Germany as the new currency was stable.

Question 6

What were the negatives of the Retenmark?

Answer 6

could not bring back losses of those ruined by hyperinflation

Question 7

How did Stresemann tackle the French occupation of the Ruhr?

Answer 7

Called off passive resistance in the Ruhr- led to France leaving the Ruhr as they trusted Germany to pay reparations.

Question 8

When was the Dawes Plan?

Answer 8

August 1924

Question 9

What was the Dawes Plan?

Answer 9

Reparation repayments set at 1 billion marks for the 1st year, increasing to 2.5 billion over a period of 4 years.
Organised US loans: initial loan of 800 million marks.
Reichsbank reorganised under Allied supervision.
Ruhr was evacuated.

Question 10

What was the impact of the Dawes Plan?

Answer 10

American loans were invested in German banks and businesses which helped them to recover, and employment increased.
Industrial output doubled between 1923- 28, passing pre-WWI levels

Question 11

When was the Locarno Pact?

Answer 11

1925

Question 12

What was the Locarno Pact?

Answer 12

France, Germany and Belgium agreed to keep the existing borders (as set out in the Treaty of Versailles) and Britain and Italy would guarantee these borders.

Question 13

What was the impact of the Locarno Pact?

Answer 13

This pact improved the relationship between Germany and its neighbours - Fr and Bel could not invade G again.
It enabled Germany to join the League of Nations. This also meant that the Allies were more willing to renegotiate the reparations bill which led to the Young Plan.
Disliked by some people/parties as meant Germany was accepting the Treaty of Versailles.

Question 14

When was Germany accepted into the League of Nations?

Answer 14

September 1926

Question 15

Why were Germany accepted into the League of Nations?

Answer 15

Germany had not been allowed to join under the terms of the Treaty of Versailles. Negotiating the Locarno Pact meant that Germany had to be a member, so they were finally allowed to join.

Question 16

What was the impact of Germany’s acceptance into the League of Nations?

Answer 16

Germany’s status as a great power was confirmed by its membership of this organisation.
Boosted confidence in the Weimar Government- support of moderate political parties.
Not all parties agreed- symbol of the TofV

Question 17

When was the Kellogg-Briand Pact?

Answer 17

August 1928

Question 18

What was the Kellogg-Briand Pact?

Answer 18

Agreement signed by Germany and 61 other countries - promised not to use war as a means of achieving their foreign policy aims.

Question 19

What was the impact of the Kellogg-Briand Pact?

Answer 19

The agreement showed greater cooperation internationally and that Germany had improved their international position.
Not all agreed- did nothing to remove hated terms of TofV.

Question 20

When was the Young Plan?

Answer 20

1929

Question 21

What was the Young Plan?

Answer 21

The total reparations bill was reduced from £6.6 billion to £1.8 billion, and Germany was given 59 years to pay the bill.

Question 22

What was the impact of the Young Plan?

Answer 22

The Plan reduced the overall burden of the reparations payment and gave Germany much longer to pay, so it helped the country financially and economically.
Lower reparation payment = lower taxes, released public spending power and boosted economy. 85% of Germans in favour.
Now stretched out until 1988- angered extreme parties.

Question 23

Evidence that the Weimar Republic recovered politically 1924-29:

Answer 23

There was greater political stability. One of the main political parties that supported the Weimar Republic, the Social Democratic Party was getting more votes e.g. in May 1924 they had 100 seats in the Reichstag. This increased to 153 seats in 1928.

Extremist parties lost support which shows that more people were supportive of the Weimar Republic. The Communist Party had 62 seats in the Reichstag in May 1924. This decreased to 54 seats in 1928.

Question 24

Evidence that the Weimar Republic recovered economically 1924-29:

Answer 24

As a result of hyperinflation, large businesses were able to pay off their debts.

Wages/pay increased.

There were fewer strikes between 1924 and 1929 indicating workers were more content

Question 25

Evidence that the Weimar Republic did not recover politically 1924-29:

Answer 25

Some Germans still supported extremist parties such as the Nazis and the Communists. Therefore, political parties that wanted to overthrow the Weimar Government still had support and could threaten the Weimar Government.

Question 26

Evidence that the Weimar Republic did not recover economically 1924-29:

Answer 26

The increase in wages was not much above the rising cost of living

Agriculture: the price of food dropped which meant lower profits which led to further debt for farmers. It discouraged investment in new machinery.
Germany was dependent on loans from America.
Agricultural production in 1929 was still only at 74% of pre-war levels.

There weren’t enough jobs for Germany’s increasing population.

Unemployment never dropped below 1.3 million.

Question 27

How far had the Weimar Republic recovered (judgement)?

Answer 27

I think that the Weimar Republic had partially recovered because it was fairly stable politically, and although there were still economic issues, it had improved since 1923.