Stresemann Era - Reparations

Question 1

Dawes Plan (1924): Terms

Answer 1

• Annual payments reduced to an affordable level (lasted 5 years)
• American banks would invest in German industry, lending money to the industries/banks/gov (25 billion marks)

Question 2

Dawes Plan (1924): Benefits

Answer 2

• French left the Ruhr (left by 1925)
• Industrial output doubled during the period 1923-1928, fuelled by US loans
• Imports and exports increased
• Employment increased
• Gov. income from tax improved

Question 3

Dawes Plan (1924): Costs

Answer 3

• The extreme political parties were furious that Germany agreed to pay reparations again
• The economy relied on US loans
• Only a temporary measure (5 years)

Question 4

Young Plan (1929): Terms

Answer 4

• Reduced the total reparations debt from £6.6billion to £2billion
• Germany was given a further 59 years to pay

Question 5

Young Plan (1929): Benefits

Answer 5

• Allies left the Rhineland (1930)
• It reduced the annual amount the gov had to pay
• Lowering taxes was made a possibility
• This released spending power, boosting German industry and employment

Question 6

Young Plan (1929): Costs

Answer 6

• Annual payments were still £50million a year
• Payments now stretched to 1988 which enraged extreme political parties
• Hitler criticised this