The Stresemann era: economic achievements

Question 1

What were the changes that helped economic recovery?

Answer 1

• New currency + Reichsbank (1923-24)
• Dawes Plan (1924)
• Ending the Ruhr Occupation + improving foreign relations (1925-28)
• Young Plan (1929)

Question 2

What were the positives of the new currency + Reichsbank (1923-24)?

Answer 2

• The value of the currency was linked to the price of gold
• Stabilised economy + helped to end Hyperinflation
• Establishment of the Reichsbank
• Replaced the old Mark with a Reichsmark - stable currency
• New central bank is set up to help with the currency control

Question 3

What were the negatives of the new currency + Reichsbank (1923-24)?

Answer 3

• This would not permanently fix the economy if other problems continue eg. reparations and Ruhr continued

Question 4

What were the positives of the Dawes Plan (1924)?

Answer 4

• Negotiations held by Charles Dawes (named after)
• The US agree to lend money to Germany
• Initial loan of 800 million marks by USA to Germany
• Under the plan Germany can borrow money from the USA in return for trading commitments with the USA which could be used to pay reparation debts

Question 5

What were the negatives of the Dawes Plan (1924)?

Answer 5

• Extremists/those on the right - critical as Germany was still paying large reparation amounts - to former enemies
• Germany was dependent on the USA making (and not recalling) the loans - if the USA stopped doing this. All the problems come back

Question 6

What were the positives of ending of the Ruhr Occupation + improving foreign relations (1925-28)?

Answer 6

• This meant that the Ruhr Occupation ended, and so the German economy could recover
• Britain and France were happier to trade with Germany - which also improved the economy

Question 7

What were the negatives of ending of the Ruhr Occupation + improving foreign relations (1925-28)?

Answer 7

• These relations could deteriorate again if reparations are not paid
• Far right also unhappy about the relations with ‘oppressors’ under the ToV

Question 8

What were the positives of the Young Plan (1929)?

Answer 8

• Reduced the total amount of reparations by 20%
• Extended the time that Germany had to pay the amount to 59 years
• Average annual payments now 2 billion marks

Question 9

What were the negatives of the Young Plan (1929)?

Answer 9

• Far right also unhappy about the relations with ‘oppressors’ under the ToV
• Impact limited by the Wall Street Crash & Great Depression