The Recovery Of Germany Flashcards
What name was given to the 1923 government led by Gustav Stresemann?
The Great Coalition Government.
For how many months did Stresemann hold the position of chancellor?
4 months.
What was the name of the new German currency introduced in November 1923?
The Rentenmark.
What was the Reichsbank?
It was the independent German national bank set up in 1924 to control the new German currency and re-establish trust in the German financial system.
Describe the measures taken by Stresemann to stabilise the German currency.
He established the temporary Rentenmark currency in 1923 and then established the permanent Reichsmark currency the following year in order to provide Germany with a new, stable currency. He also set up the Reichsbank to control the printing of the new Reischmark currency and re-establish trust in the German financial system.
Under the terms of the Dawes Plan, how much money was lent to Germany by the USA?
800 million gold marks.
List three ways in which Germany experienced an economic recovery after the Dawes Plan in 1924.
Firstly, Germany was given loans by the US and its reparation payments to the Allies were significantly reduced, allowing the economy to recover. The newfound stability of the Reischmark also gave foreign investors the confidence to invest in Germany’s industry, boosting industrial output and thus supporting the economy. Finally, these events allowed Germany to focus on more re-employment efforts.
Why was using American loans to fund economic recovery dangerous for the Weimar Republic?
It meant that the economic state of Germany was largely reliant on that of the US, which would spell disaster for Germany should the US run into any financial trouble (which it did, in the form of the Wall Street Crash and the Big Sad.)
Why did Stresemann argue that Germany needed to accept the Treaty of Versailles?
Because it would allow them to improve foreign relations with the Allies.
How many years and at what rate was Germany to pay reparations under the terms of the Young Plan?
$473 million annually over the course of 59 years, amounting to a total of $8 billion. Germany was also only obliged to pay a third of the annual sum should it not have enough money.
Explain two key differences between the Dawes Plan and the Young Plan.
The Dawes Plan included the financial support of the USA, which was not available within the terms of the Young Plan. In addition, the Young Plan was largely criticised by the German public due to its long timescale and the fact that they felt belittled by its terms.
In what year was the Locarno Pact signed?
1925.
Summarise the terms of the Locarno Pact.
Avoidance of military action unless taken as an act of self-defense, the acceptance of Germany’s new western borders and the peaceful settling of Germany’s eastern borders, and the French de-occupation of the Ruhr in return for Alsace-Lorraine.
Which period is sometimes known as the Locarno Honeymoon?
1925-1929.
Why did some people refer to this period as the Locarno Honeymoon?
It saw a significant improvement in the relations between Germany and the Allies.
