Unit 2-The recovery of Germany 1924-29 Flashcards
What was the crisis that Germany was left in by 1923
-hyperinflation
-unemployment
-poverty
Who was Gustav Stresemann
He became chancellor in 1923
Led the ‘Great coalition’ government
was chancellor for 4 months, then became foreign secretary.
What was the temporary currency put in place to resolve hyperinflation
The Rentenmark
What was tightly controlled when the Rentenmark was introduced
The amount of money
What was the Reichsbank
The new independent German national bank; set up to help build confidence in Germany’s financial system
The Reichsbank was the new _________ national bank and was handed _______ over the new ______
independent
control
currency
What was the Reichsmark
The new permanent currency that replaced the Rentenmark
People in Germany and other countries could now rely on this
What did the implementation of a national bank and a new currency do
It resolved hyperinflation and restored faith in germany’s financial system. It was vital in allowing Germany’s economy to grow stronger
What was Stresemann’s belief
That Germany could only recover through diplomacy and that Germany should accept the Treaty of Versailles to improving foreign relations
However he also believed that it would be possible to negotiate better terms for Germany’s economy to recover
What did France and Britain owe to whom
millions of dollars to the US as the US provided war loans
what did France and Britain being in debt mean
It meant that if the TOV’s terms were negotiated and Germany’s economy could recover, it would be easier for France and Britain to get their money back through more realistic reparation payments
What else could benefit the Allies if Germany was given the time and lent the resources for economic recovery
Germany could become a strong trading partner again
Who did the USA send to Germany
Charles Dawes to resolve Germany’s economic problems
When was the Dawes Plan implemented
1924
What did Charles Dawes suggest the establishment of
The reichsbank
What were the key points of the Dawe’s plan
-The USA loaned Germany 800 million gold marks; this gace a massive boost to the German industry
-Reparations payments were reduced to 1000 million marks for the first 5 years to make them more affordable
-After this time, the payments would be increased to 2500 million marks
-The allies agreed to review the payment rate over time, to take account of Germany’s economic situation and ability to pay
-The French agreed to withdraw troops from the Ruhr. They also agreed that any missed payments in the future would be dealt with by the Allies together
-The allies were given some control of the Reichsbank and the railways in Germnany
Why did some Germans criticise the government for agreeing to the Dawes plan?
Because they felt that Germany was accepting the blame for starting the war by agreeing to continue with reparations payments
How much in loans did Germany receive from the next 6 years after the Dawes plan?
Over 25 billion marks
What did the Dawes Plan do overall
It helped boost Germany’s industry and and economy and allowed a substantial economic recovery.
What did the stability in German currency mean
more investment in Germany from foriegn countries, especially the US
Most of this investment was in boosting industry and building factories.
What happened to Germany’s industrial output between 1925-29
It doubled
What did the economic improvements lead to by 1927
the introduction of new laws which allowed people to claim unemployment benefit and ‘labour exchanges were set up to help people still unemployed find work.
What was a disadvantage to the Dawes plan
Foreign investment left the German economy open to risks if there were problems in the world economy (subtle foreshadowing)
What were some negative signs that appeared in 1927?
The economy slowing down and the farming industry was beginning to struggle
Why was the Young plan put in place?
Because despite the Dawes plan and American loans, the German government still did not find it easy to make reparations payments
What were the arrangements of the Young plan
The total reparations was reduced to around 8B dollars.
The payments were to be made over 59 years at a rate of $473 million per year
Germany was only obliged to pay a third of the annual sum each year. It should pay the rest if it could afford.
What did the French agree to do at the same time as the young plan
They agreed to leave Rhineland by June 1930- 5 years ahead of the previously agreed date of 1935.
What did the reduction in annual payments allow the government to do
reduce taxes and release funds that were used to boost the German industry and create jobs for workers.
Why did the nationalists oppose the young plan (eyeroll)
They felt that the timescale for the payments was far too long and would limit germanys progress.
What percentage of the population voted against the young plan
14%
Why was there British opposition to the young plan
There was still resentment for Germany for the damages done in WW1
Why did the Young plan come to nothing in the end
due to the Wall street crash; after this the Americans couldn’t afford to loan any money. In 1931 the German economy also crashed and the Allies agreed to suspend payments
What could you say were two effects on Germany of Stresemann’s work to reorganise reparations
Economic Stability:
Dawes Plan: Reduced reparations payments
International loans: Helped revive German economy
Reduced hyperinflation: Stabilised the currency
Improved International Relations:
Eased tensions with France and other Allies
Period of relative peace and cooperation in Europe
What was the main approach Stresemann employed
diplomacy
What did Stresemann end to improve Germany’s relationship with France
ended passive resistance in the Ruhr
What was the Locarno pact
A collection of seven treaties involving Germany, France, Belgium, Italy, Britain, Czechoslovakia, Poland
When was Locarno pact signed
1925
What was agreed upon in the Locarno pact
-Germany accepted its new western borders
-All countries involved on the Locarno pact agreed to avoid military force except fin self-defense
-Germany agreed that Alsace Lorrine would be French. In return France agreed not to occupy the Ruhr again
-All parties agreed that Germany’s eastern borders could be settled by ‘peaceful matters’
-Disputes were to be settled peacefully settled through the League of Nations
What did Stresemann believe about the Locarno pact
-it made peace in Europe more likely
-Germany was now being treated equally, rather than being ordered about
What did the Locarno pact lead to
a significant improvement in relations between Germany and other countries.
What did the nationalists believe about the Locarno Pact?
They were unhappy that Stresemann was accepting the terms of the TOV, particularly in relation to Germany’s borders.
How could you answer what were two effects of the Locarno pact
Peace in Europe
Germany was allowed to join the league of nations
What were further consequences of Germany joining the League of nations
Germany’s League membership increased its international legitimacy and provided opportunities for economic cooperation. Widened germany’s influence on a global scale,
What were the further consequences of the Dawes plan
The Dawes Plan led to a period of relative economic stability in Germany, reduced tensions with Allied powers, and fostered international cooperation.
Further consequences of Stresemann’s economic improvements
This period saw increased industrial production, job growth, and improved living standards for many Germans.
What were further consequences of Locarno pact
Brought peace to Europe whilst improving Germany’s relations with its former rival
When did Stresemann persuade the other great powers to allow Germany to join the league of nations
September 1926
Why was Germany joining the LON significant
because the members of this council made the most important decisions. widened the scope of Germany’s influence and status in Europe
What did this period of recovery bring to Germany
Increased confidence in the Weimar regime as they could see that Germany was accepted into the international family.
Gave confidence that moderate parties could be trusted to make Germany strong again
What was the Kellog-Briand pact and when was it signed
It was signed in August 1928
62 countries signed this.
It aimed to prevent future war by getting countries to promise not to use military force to settle disputes.
What did the Kellog Briand pact show
-Germany was now included among the main global powers
This was an improvement from having been excluded from negotiations that led to the TOV
-It was clear that Weimar grepublic was now a respected stable state.
How do you answer 8 markers (explain two effects of…)
Point- What was the effect
Evidence- details (Names, dates, facts, figures, events)
Explain- How did this effect happen? Why did it happen? How significant was the effect? (focus)
Analysis- What were its further consequences?
What should you remember with 8 markers
only include relevant information!!
How do you answer a six marker again??
2 marks- overall impression of view (make this an interpretation rather than copying what the text says)
3 marks- quotations (3-4) explain why this gives the impression (here, the writer suggests)
1 mark- something that opposes the writers view (however, the author fails to mention…)
What was Stresemann’s ultimate impact on Germany
Gustav Stresemann:
Stabilized Germany’s economy after WWI (Dawes Plan, Young plan, currency reform)
Improved Germany’s international relations (Locarno Pact, League of Nations)
