The Recovery of the Weimar Republic Flashcards
• Who devised a plan to solve this problem?
Gustav Stresseman
What plan did he devise?
The Dawes Plan (August 1924)
• Describe the Dawes plan
- instalments were reduced to £50 million annually
- USA payed loans to DE (initial of 800 million marks)
- DE payed reparations to FR
- FR and BR payed war loans to USA
• What new currency was made?
The Rentenmark
• How was this currency controlled?
it was issued in limited amounts and was based on property
• Describe the Young Plan
- in 1929, the Reparations Committee decided to decrease payments from £6,600 million to £1850 million
- Germany now had 59 years to repay
- it was criticised by right-wing politicians
• Which two people kept political stability between 1924 to 1929?
Gustav Stresemann and Paul von Hindenburg (old Germany war leader)
• Describe the Locarno Pact
- Germany agreed to share its border with France, improving relations
- the Allies and Germany agreed to demilitarise Rhineland
• What was an effect of the Locarno Pact?
- Germany could join the League of Nations
- LoN was an international body that discussed world problems to avoid war
- it improved the confidence of Germans
• Describe the Kellogg-Briand Pact
an agreement between 62 nations which meant they avoided the use of war to achieve objectives
• How did the economy improve?
- industrial output doubled by 1928 and passed pre WWI levels
- employment and trade increased
• What problems did the economy still face?
- extreme political parties were against Germany paying the loans back
- the recovery was dependant on USA loans, so it remained fragile