The Stresemann Era, 1924-29

Question 1

How did Stresemann fix the problem of the currency being worthless?

Answer 1

Stresemann replaced the worthless mark with the Rentenmark which was later replaced by the Reichsmark. Old bank notes were recalled and destroyed.

Question 2

What happened as a result of the new currency being introduced?

Answer 2

Inflation was quickly brought under control and there was a resorted faith in the German currency and prices were settled and stabilised.

Question 3

Why were some people unhappy with the introduction of a new currency?

Answer 3

People who had lost savings due to hyperinflation were not compensated.

Question 4

How did Stresemann deal with the problem of Germany being internationally isolated?

Answer 4

• He negotiated the Dawes Plan (1924) and Young Plan (1929) which make reparations more manageable and provided loans to rebuild the economy.
• Negotiated the Locarno Treaty (1925)
• Negotiated entry into the League of Nations (1926)

Question 5

What did unemployment remain at during this period?

Answer 5

Around 1 million

Question 6

When did unemployment begin to rise again?

Answer 6

After 1928

Question 7

How did Stresemann allow businesses to recover?

Answer 7

• Encouraged cartels (businesses joining together to try and control the market)
• Established state arbitration

Question 8

How many cartels were established?

Answer 8

2500

Question 9

How did cartels boost the economy?

Answer 9

They fixed prices which helped to stabilise the economy.

Question 10

What was the negative impact of cartels?

Answer 10

There was a significant level of disputes between business owners and workers. Workers wanted better working conditions while owners were trying to cut wages and extend working hours. This led to strikes.

Question 11

How did Stresemann improve trade?

Answer 11

By joining the League of Nations, negotiations and relations improved allowing trade to also improve.

Question 12

What was Germany producing which other countries needed?

Answer 12

Steel and chemicals

Question 13

What happened to German export levels by 1926?

Answer 13

They were back to 1913 levels.

Question 14

What evidence is there of failure in improving trade?

Answer 14

• The value of imports always exceeded that of exports
• Germany’s balance of trade was in the red
• German exports continued to be hindered by protective tariffs.

Question 15

How did big farms benefit during this period?

Answer 15

They could invest in new machinery and farming techniques. Big farms remain the significant employer.

Question 16

What was the income per head in agriculture in the late 1920s?

Answer 16

44% below the national average

Question 16

What did the Reich Settlement Law (1919) do?

Answer 16

It redistributed lang among poorest tenants. They were allowed to press for high grain subsidies.

Question 17

How did small farms suffer?

Answer 17

Farmers were heavily in debt and could not afford to pay interest on loans and (in some cases) taxes.

Question 18

By how much did exports rise between 1925-29?

Answer 18

40%

Question 19

What evidence is there of improved living standards under Stresemann?

Answer 19

Wages rose every year during this period.

Question 20

What happened to agriculture in 1927?

Answer 20

It was in recession