The recovery of the Republic, 1924-29

Question 1

Stresemann’s strategy

Answer 1

Appointed as Chancellor and foreign secretary in Aug 1923.
Main objective - make the political situation in Germany more stable by stabilising the economy and and regaining respect for Germany in foreign affairs.

Question 2

Reasons for economic recovery - Rentenmark

Answer 2

Set up new bank, the Rentenbank, which issued the new currency, the Rentenmark. Their value was tied to the price of gold, so people trusted it.
Hyperinflation came to an end.

Question 3

Reasons for economic recovery - The Dawes Plan, 1924

Answer 3

Terms:
- reduce reparations to £50 mil/year
- gave loans
- French left Ruhr
Impact:
- industrial output doubled
- employment, trade and income from taxes increased
- extreme political parties were angry
- economy now relied on American loans

Question 4

Reasons for economic recovery - The Young Plan, 1929

Answer 4

Terms:
- reduce total reparations to £2 bil
- gave 59 years to pay back
Impact:
- extreme parties angry ('passing on the penalty to the unborn')
- lower taxes, increase spending
- more jobs created
- gaining better reputation

Question 5

Recovery in foreign relations - The Locarno Pact, 1925

Answer 5

Terms:
- accepted Germany’s border with France
- permanent demilitarisation of Rhineland
- open talks about Germany joining League of Nations
Impact:
- made war less likely
- Germans gaining confidence in the Republic
- extreme parties disagreed with borders

Question 6

Recovery in foreign relations - League of Nations

Answer 6

After Germany was given a place in Sep 1926, the Germans’ confidence on the Republic grew, but the extreme parties opposed the joining since it represented the hated Treaty.

Question 7

Recovery in foreign relations - Kellogg-Briand Pact

Answer 7

Terms:
- won’t use war to achieve foreign policy aims
Impact:
- republic was trusted and equal to other countries, so gained popularity

Question 8

Stresemann’s impact on domestic politics

Answer 8

Stresemann achieved his goal, seen by the decrease in the number of seats of extreme parties and increase in seats for moderate parties.
After Ebert (a 'November Criminal') died, he was replaced by Paul von Hindenburg, a war veteran, so he was trusted and increased people's confidence.