Why did the government become popular by 1923? Flashcards
Who became the Chancellor in 1923?
Gustav Stresemann
What got worse due to the workers strike?
Inflation
What did Stresemann want to end?
Hyperinflation
What did Stresemann want Germany to be?
Prosperous
What does having prosperity mean?
Being rich
What did Stresemann introduce?
Rentenmark - new curency
What happened to the old currency?
It was destroyed
What was the Rentenmark tied to?
Property - not gold
How long was the Rentenmark introduced for?
1 year
What did Stresemann limit?
Printing of the Rentenmark
What replaced the Rentenmark?
Reichsmark
What was the Reichsmark tied to?
Gold
What did Germany get due to this?
prosperity
4 positives of Reichsmark
-Industry grew
-Wages increased
-Public works
-unemployment fell from 9 to 6 million
2 negatives of Reichsmark
-farming production reduced by 74%
-lower middle class wages didn’t rise
When was the Dawes Plan signed?
August 1924
Who signed the Dawes Plan?
Germany and America
What was the Dawes Plan?
USA loaning Germany money to pay reparations
How much was the First loan of the Dawes Plan?
800 million marks
What were the reparations going to be paid in?
Installments - 1 billion first year, 2.5 billion over 4 years
How much was eventually going to be loaned in the Dawes Plan?
3000 billion marks
What did the allied troops do in 1924?
Leave the Ruhr
When was the Young Plan signed?
1929
What did the Young Plan do?
Reduce reparations and extend payment time
