Unit 2- The Golden Age 1924-28 Flashcards
What was the “Great Coalition” of 1923 ?
- Led by Stresseman
- Parties from the left and right wing
- DVP + Centre Party + Socialists+ DDP
How did Stresseman end Passive Resistance?
-Stopped paying workers who refused to comply and work for the French
=Reduced government expenditure
What was the name of the new currency introduced by Stresseman ?
- The Rentenmark
- Replaced the worthless Reichmark
How was the new Rentenmark being exchanged for the old Reichmark ?
-One Rentenmark exchanged for One trillion old marks
How was the new currency supported ?
- Mortgage on all industrial and agricultural land
- Didnt have gold reserves to back the currency
How did Stresseman keep a tight control of the money to prevent inflation ?
- Rentenmark became the Reichmark and was backed by gold reserves
- Had to be maintained at 30% of the value of the Reichmarks in circulation
- Inflation seased to be a problem
How did Stresseman balance the Budget ?
- Cut expenditure, raised taxes
- Salaries of government cut
- 300,000 civil servants lost their jobs
Who benefitted from Stresseman’s economic changes ?
- Well managed companies that didnt build debt continued to prosper
- Weaker companies that relied on credit, crumbled
- People that lost in the collapse of the old currency didnt gain anything from the introduction of the new one.
What did the number of Bankrupt Companies rise to between 1923 and 1924 ?
1923- 233
1924- Over 6000
What was the Dawes Plan 1924 ?
- Plan with USA
- Amount paid each year by Germany should be reduced until 1929, when the situation would be reassessed.
- Germany should re-start reparations by paying 1000 million marks and this would be raised by annual increments over 5 years
- After sum paid is related to Germany’s industrial performance
- Loan of 800 million marks from USA
Why was the USA interested in helping Germany with their reparations ?
- Wanted Germany to get back to the position where reparations could be made to France
- Much of this money was then passed on to the USA to repay loans
What opposition did the Dawes Plan face ?
- Stresseman himself didn’t believe in the plan and called it an “economic armistice” but agreed to secure foreign loans
- DNVP and right wing groups attacked the policy and believed Germany should refuse to pay reparations
- Seen as a betrayal for accepting terms of TOV
How did the Dawes Plan benefit Germany ?
- Allies accepted that Germany’s problems with reparations payment was real
- Loans were granted so new machinery, factories, houses and jobs could be provided- economy could be rebuilt
- French left the Ruhr once it was clear Germany would restart reparations payment
What showed an Economic Recovery in Industries after 1924 ?
- Big businesses made agreements with smaller firms to form cartels (3000 cartel agreements) inc: 90% of German coal and steel production
- Allowed to protect industries by introducing tariffs on imported foreign goods
- Advances made in the chemical industry such as the large scale production of artificial fertilisers
- Car and aeroplane industries developed
What showed an Economic Recovery in Living Standards after 1924 ?
- Inflation rate close to zero
- Wages began to increase from 1924
- In 1927, wages increased by 9%
- Loans financed the buildings of houses, schools, roads
- In 1925, over 70,000 more dwellings were built
- In 1926, there were 205,793 new homes
What shows the limits of the Economic Recovery in 1924?
- Industrial output didn’t reach 1913 levels until 1929
- 1929 Export down by 61%
- Cars were still expensive for the average German
- End of 1925, unemployment = 1 MILLION
- White collared workers didn’t enjoy wage rises of industrial sector
How were Farmers affected by the Economic Recovery in 1924?
- Increased taxes regarded as unfair on farmers (prices were falling)
- Few farmers able to make a profit off their land
- Increase in bankruptcies amongst farmers
- By 1929, agricultural production was at less than 3/4 of its pre-war level
- Foreclosures- lost their farms
What did the Young Plan 1929 state ?
- Obliged Germany to continue paying reparations till 1988
- Total of reparations was reduced to £1.8 billion
- Annual repayments increased
- Britain and France agreed to withdraw troops from Rhineland
- All foreign control over reparations ended
What opposition did the Young Plan 1929 face ?
- Leader of right wing DNVP launched a nationwide campaign against the plan (included Nazis)
- Drew up “Freedom law” - demanded it be submitted to a national referendum
- Law required government to reject TOV and any minister who signed TOV to be tried for treason
What was the results of the Freedom Laws ?
- Attracted 4,135,000 signatures
- Was debated and rejected in a referendum
What social welfare reforms were introduced 1924-27 ?
1924-Public Assistance System- provided help to the poor and destitute was modernised
1925- State Accident Insurance System- To help those injured at work and who had occupational diseases
1927-National Unemployment Insurance System- Provided benefits for the unemployed- financed through contributions from workers and employers
What were the problems with Social Welfare?
- Promised more than it delivered
- Very expensive
- Needed a large and expensive bureaucracy to administer it
- Means tests introduced- to see people weren’t cheating the system
- War Veterans and their families felt humiliated and insulted by the welfare system
- Undermined their support for the Weimar Republic
In 1926 how many people were the state supporting with welfare ?
- 800,00 disabled war veterans
- 360,000 Widows
- Over 900,000 War Orphans
Which groups enjoyed improved living standards ?
- Workers in trade unions- were able to maintain living standards by negotiating wage increases
- Business owners and their employees benefitted from the improved trading position for German companies at the time
Which groups didnt benefit from the new living standards?
- Those dependant on welfare suffered some hardships
- People who lost savings during Hyperinflation were unable to regain their previous lifestyles
- Farmers suffered from poor trading conditions, low prices and their incomes were falling
What did the “New Woman” symbolise ?
- Symbolised the way women’s lives had changed since the end of the war
- Was free, independent, sexually liberated, increasingly visible in public life
What caused women to gain more opportunities after the war ?
- Change in gender balance due to war
- Over 2 million males killed in war= fewer opportunities for women to follow conventional path
- Many more women brought into paid employment to replace men who’s fought in the war
What law limited the ability for women to get employment ?
- The Civil Code of Conduct 1896
- In a marriage, the husband had a right to decide on all matters concerning family life
Who were the League of German Women (BDF) ?
- Most popular women group in the 1920’s
- 900,000 members
- Promoted traditional family values and maternal responsibilities
- Opposed changes of freedom and liberation
What rights did women gain in employment ?
- Greater equality in employment rights
- Equal opportunities in civil service
- Right to equal pay
- In 1925- 36% of German workforce are women
What was the reality of women’s rights in employment ?
- Demobilisation Laws= women to leave jobs so ex-soilders could find employment
- Required to give up employment when marries
- Married women who worked, attacked as “double earners” - conservative parties campaigned to dismiss them
How did Women’s sexual freedom increase ?
- Birth control widely available
- Divorce rates increased
- Rise in abortions
- By 1930- 1 million abortions a year
What was the reality of women’s sexual freedom ?
-Abortion was illegal, performed by unqualified people -10-12,000 deaths
What rights did women gain in politics ?
- Gained equal voting rights to men
- Right to be Reichstag deputies
- In 1914, 41 women were elected to Reichstag
What was the reality of women in politics ?
- No political party had a female leader in the Weimar years
- Only communists (KPD) made gender equality a key element in its party
Who was Clara Zetkin ?
- KPD member of Reichstag
- Organised first International Women’s Day in 1911