the stresemann era(1923-29) Flashcards
when did stresemann become chancellor
august 1923
how long did it take stresemann to end hyperinflation
He did this in just three months
what did stresemann do to end hyperinflation
- stopped ‘passive resistance’ in the ruhr
- promising to begin reparations payments again
- introducing a new form of currency - the rentenmark
- reducing government spending
how did ending policy of ‘passive resistance’ in the ruhr help stop hyperinflation
This helped Germany’s economy because….
- goods were back in production
- the Government could stop printing money to pay striking workers.
how did the rentenmark reduce hyperinflation
- This stabilised prices as only a limited number were printed meaning money rose in value
- value was linked to gold ppl could see it had real value.
- This helped to restore confidence in the German economy.
- encouraged international trade again as foreign governments could trust the new currency
how did promising to pay reparations help end hyperinflation crisis
- This persuaded France and Belgium to end the occupation of the Ruhr by 1925
- german industry could continue production helping economy
what were the two plans introduced to reduce reparations (in order)
- the dawes plan - enforced september 1924
- the young plan - enforced janurary 1930
what was the dawes plan
- agreed september 1924
- agreement between germany and usa
- usa would loan germany 800 million marks
- money would be invested into german businesses to help boost economy
- helped to ensure reparations would be payed
positives of dawes plan
- 800 million marks loan
- money invested into german businesses to further boost economy
- helped to ensure reparations would be payed
criticisms of dawes plan
- criticised by nazis due to reliance on usa loan
- us agreed loan would be paid off over an indefinite period of time however after wall street crash they wanted all the money back at once (though this was unforeseeable at the time)
what was the young plan
- agreed january 1930
- between us france and germany
- reparations reduced from 6.6bn to 2bn some of which could be postponed each year if necessary
- which would be paid across 59 years
positives of young plan
- reduced reparations placing less pressure on germany
- continuing of loans allowed german businesses to keep growing
criticisms of the young plan
- criticised by nazis as it was ‘passing penalty to the unborn’ - those who had nothing to do with the treaty of versailles would be suffering in 59 years
only need 2 or 3
5 signs the german economy did recover during the golden years (pewif)
- Production By 1928 industrial production levels were higher than those of 1913 (pre ww1)
- Exports during this time exports rose (by 40 per cent)
- Wages Hourly wages rose every year from 1924 to 1929 (and by 10 per cent in 1928 alone)
- Farben (IG Farben) a German chemical manufacturing company, became the largest industrial company in Europe
- Insurance Generous pension, health and unemployment insurance schemes were introduced from 1927
only remember 2
5 signs the german economy did not recover during the golden years
- agricultural production did not recover to its pre-war levels
- it spent more on imports than it earned from exports, so Germany was losing money every year
- unemployment did not fall below 1.3 million and in 1929 increased to 1.9 million
- German industry became dependent upon loans from the USA
- The government ended up spending more than it received in taxes and so continued to run deficits from 1925 onwards
Locarno pact 1925
In October 1925 Germany, France and Belgium agreed to respect their post-Versailles borders. France also had to respect their frontier with Germany,
- france would not occupy the ruhr again
- german would not complain about lost colonies in tov
Germany’s entry into the League of Nations 1926
- When the League of Nations was set up Germany was initially excluded.
- germany signing the locarno treaties showed they were willing to accept the terms of treaty of versailles
- also agreed they could apply to join league
- a year later was accepted as a permanent member of the Council of League
- making it one of the most powerful countries in the League.
when did germany join the league of nations
1926
Kellogg-Briand Pact 1928
- signed by 61 countries including germany
- agreed to settle disputes without using war
impact of kellogg briand pact on germany
- increased german security
- showed they were trusted again
impact of joining the league of nations on germany
- boosted pride
- became key member of international community again
what did the unemployment act 1927 do
3% of wages were charged and in return 60 marks a week were given if they became unemployed
when was the unemployment act
1927
what happened to average working hours a week during this time
they decreased between 1925-27 (from 50 hrs to 46)