The recovery of the Republic

Question 1

What did Stressman set up?

Answer 1

the Rentenbank

Question 2

What currency was issued in the Rentenbank?

Answer 2

Rentenmark

Question 3

How did the new currency give value to German money?

Answer 3

tied to the price of gold

Question 4

What was the new bank called?

Answer 4

Reichsbank

Question 5

What was the purpose of the Dawe’s Plan?

Answer 5

help resolve the issue of German unable to pay reparations to the Allies

Question 6

What were the terms of the Dawe’s Plan?

Answer 6

• reparations would be reduced temporarily to £50 millions yearly
• US banks agreed to loan Germany

Question 7

How did the Dawe’s Plan improve Germany’s economy?

Answer 7

• Industrial output doubled between 1923 and 1928
• Employment, trade and income from taxation increased

Question 8

What were the disadvantages of the Dawe’s Plan?

Answer 8

• extreme political parties disliked how Germany had to pay reparations again
• German economy depended on American loans

Question 9

What was the aim of the Young Plan?

Answer 9

reduce total reparations debt from £6.6 billion to £2 billion
Germany was given 59 years to pay

Question 10

Disadvantages of the Young Plan?

Answer 10

annual payments were still £50 million a year

Question 11

How did the Young Plan boost the economy and industry?

Answer 11

lower reparations allowed the government to lower taxes

released public spending power which boosted the industry and created more jobs

Question 12

Advantages of the Young Plan?

Answer 12

• French agreed to leave the Rhineland
• Germans rose confidence on the Weimar Republic

Question 13

When did the Locarno Pact take place?

Answer 13

1925

Question 14

What was the Locarno Pact?

Answer 14

treaty between German, Britain, France, Italy and Belgium

Question 15

What were the terms of the Locarno Pact?

Answer 15

• Germany accepted its new border with France
• Germany and the Allies agreed that the Rhineland would be permanently demilitarised
• open talks about German membership of the League of Nations

Question 16

What effect did the Locarno Pact have?

Answer 16

• War in Europe was less likely
• Germany was treated as an equal and increased confidence on the Weimar Republic

Question 17

What was the League of Nations?

Answer 17

powerful countries discussing ways to solve social problems without resorting to war

Question 18

Advantages of the Kellogg- Briand Pact?

Answer 18

Germany was included amongst the main powers
Weimar Republic was now respected, stable state
Confidence that the Weimar Republic could be trusted

Question 19

What was the aim of the Kellogg - Brand Pact?

Answer 19

agreement that countries would not use war to achieve foreign policy aims