The Recovery Of Germany, 1924-29 Flashcards
1
Q
Gustav Stresemann’s Role in the Recovery of Germany
A
- great coalition government, 4 months as chancellor in 1923
- temporary currency: Rentenmark based on Germany’s agricultural and industrial wealth, and in the event of failure, notes would be replaced with shares in German business or land
- 1924, independent national bank established: Reichbank took over currency - reichsmark was controlled and permanent and reliable
- built up faith in financial system allowed economy to grow
2
Q
The Dawes Plan
A
- 1924
- American loans 800 million marks
- France Leaving Ruhr
- Reduced Reparations, with different payment scheme: 1 bill marks every year for the first 5 years, then 2.5 bill marks a year
- Public angry about excepting Treaty’s Terms but overall loans over next 6 years added to 25 billion marks and helped build up economy
- Allies ownership of some german train tracks and bank
- industrial output doubled 1923-29, 1927 unemployment benefits introduced
3
Q
The Young Plan
A
- 1929
- overall loans reduced to $8 billion
- payed over 59 years, $473 million a year, only 1/3 compulsory
- French agreed to leave Rhineland by June 1930
- only 14% voted against plan in referendum
4
Q
The Locarno Plan
A
- 1925
- 7 countries: Belgium, Britain, France, Czechoslovakia, Italy, Poland, Germany
- Germany accepted western borders
- agreed to avoid using military force except in self-défense
- eastern borders decided to be agreed peacefully
- Alsace-Lorraine would be French, No longer France in Ruhr
- made peace in Europe more likely, Germany as equal, improved relations, Stresemann Nobel prize 1926: ‘Locarno Honeymoon’, nationalists unhappy
- Germany were allowed to join League of Nation 1926 because of it
5
Q
Kellogg-Briand Pact
A
August 1928
- 62 countries
- aim to prevent future war, promise not to use military force to settle disagreements
- showed Weimar Republic was respected and acknowledged, Germany part of decisions, gave public confidence in government
