The work of Stresemann

• Who became Chancellor and Foreign Secretary in August 1923?


  Gustav Stresemann
• What action did Stresemann take regarding passive resistance?

  He stopped passive resistance.
• What new state-owned bank did Stresemann set up in November 1923?


  The Rentenbank
• What was the Rentenmark tied to?

  Its value was tied to the price of gold.
• What backed the Rentenmark?

  It was backed by German industrial plants and agricultural lands.
• What happened in August 1924 regarding the currency?


  A newly independent bank, the Reichsbank, was given control of the new currency.
• What was the new name of the currency after it was controlled by the Reichsbank?

  The currency was renamed the Reichsmark.
• What was the Reichsmark backed by?

  It was backed by Germany’s gold reserves.
• What action did Stresemann take in November 1924 regarding reparations?


  He resumed the repayment of reparations.
• What was the outcome of Stresemann's actions regarding hyperinflation?

  These actions ended the problem of hyperinflation.
• What was the purpose of the rentenmark?


  To stabilize the German economy
• What are the key characteristics of the rentenmark?


  • Temporary currency
  • Introduced in November 1923
  • Replaced worthless paper mark
  • Transitional currency for stability
• What was the role of industrial plants in backing the rentenmark?


  Provided financial credibility
• How did industrial plants give value to the rentenmark?


  By demonstrating Germany's productive capacity
• What was the significance of using agricultural lands as backing?


  Showed the country's economic output
• Gustav Stresemann became Chancellor and Foreign Secretary in August 1923.
• Stresemann stopped passive resistance.
• November 1923, Stresemann set up a new state-owned bank, the Rentenbank and issued a new currency, the Rentenmark. Its value was tied to the price of gold, the notes were severely limited and were backed by German industrial plants and agricultural lands.
• In August 1924, a newly independent bank, the Reichsback was given control of the new currency, renamed

  the Reichsmark, and its value was backed by Germany’s gold reserves.
• In November 1924 he resumed the repayment of reparations.
• These actions ended the problem of hyperinflation.