The Recovery of Germany Flashcards
What was the golden age
Within a few years of hyperinflation and the occupation of the Ruhr, Germany overcame its economic problems, social unrest and political revolutions.
The period is called the ‘Golden Age’ although not everyone prospered
Opposition of the nationalists continued
What did Stresemann do
Became Chancellor in 1923
Led the ‘Great Coalition’ (the DVP, DDP and SPD)
Brought improvements in the state of the economy
Was awarded the Nobel Prize in 1926
How did Stresemann solve the problem of the Ruhr
Called off passive resistance in September 1923
He knew this would be an unpopular move
What was the Rentenmark
In November 1923, he introduced the Rentenmark
It was based on a mortgage of all land and currency and was relatively secure
Each Rentenmark was exchanged for 1 trillion old marks
Gave the German people confidence
What was the Reichsbank
Set up in 1924 to control the new currency
Cemented confidence in Germany’s new financial system
What was the Reichsmark
In 1924, it replaced the Rentenmark
Was a new permanent currency
What happened with the US loans and German economic recovery
Britain approached America about establishing an international commission of financial experts to regulate any reparation problems.
Stresemann argued that Britain, France and the USA had a lot to gain from a Germany with a strong economy
What was the Dawes Plan
August 1924
The USA loaned Germany 800m gold marks
Reparation payments were 1,000m gold marks for the first 5 years and then 2,500m gold marks after
The Allies agreed to review payment over time
The French agreed to withdraw troops from the Ruhr
Allies given some control over the Reichsbank and railways in Germany
Opposition: Nationalists argued they were being controlled by foreign powers
Did Germany recover economically
25.5 billion marks (mainly from USA) came to Germany between 1924-1930
Helped increase industrial output
Wages rose and the cost of living went down
Confidence in the economy was restored
‘Labour exchanges’ helped people find work
BUT
Heavily reliant on US loans
Did not affect everyone equally - the Mittelstand
Farmers were affected by an agricultural depression and fell into debt
What was the Young Plan
Total reparations bill was reduced to around $8b
Payments were to be made over 59 years at a rate of $473m a year
Only obliged to pay a third of the annual sum - it should pay the rest if it could afford to
The French would leave the Rhineland by 1930
Opposition:
Nationalists were angry that they paid any reparations at all
British opposition - anti-German feeling was still high
In the end, the plan came to nothing because of the Wall Street Crash
What were the Locarno Agreements
1925
Collection of treaties involving Germany, France, Belgium, Italy, Britain, Czechoslovakia and Poland
Germany agree to accept its western borders and the demilitarisation of the Rhineland
Germany agreed that Alsace-Lorraine would remain French.
France agreed not to occupy the Ruhr again
All parties agreed Germany’s eastern borders through peaceful means
Opposition: Nationalists because Stresemann was accepting the Treaty of Versailles
What happened with the League of Nations
September 1926, Stresemann convinced the other great powers to let Germany join
Germany was given a place on the League of Nations Council (they made the most important decisions)
Germans were happy because they were being accepted in the international community again
Opposition: Nationalists who saw the League of Nations as a symbol of the Treaty of Versailles
What was the Kellogg-Briand Pact
Signed in 1928
Set up by Aristide Briand (French) and Frank B. Kellogg (American)
Based on the idea ‘to renounce war as an instrument of national policy’
62 nations, including Germany signed to renounce war
Germany was among the main powers again
The Weimar Republic was a now respected state
Gave the Germans more confidence in moderate political parties
