recovery of the republic 1924-1929

• foreign secretary 1923


  gustav stresemann

  until 1929 (death)
• what were stresemann's strategies

  rentenmark

  dawes plan

  young plan

  locarno pact

  league of nations

  kellogg-briand pact
• rentenmark


  november 1923

  temporary currency to restore confidence in german currency

  issued in limited amounts

  based on property values rather than gold reserves = avoid inflation

  following year, reichsmark introduced as new currency backed by gold reserves
• dawes plan


  august 1924

  usa gives loans to help economic recovery

  america loans germany 800million marks

  change of payment terms

  rep. payments = 1b marks (1st year)

  increased over 4 years (2.5b per year)

  ruhr area = evacuated (1925)
• young plan


  august 1929

  new plan for reparations = figure decreased from 6.6b

  length of payment time increased to 59 years = 2.05b marks per year

  severely criticised by right wing + objected to further payments
• locarno pact


  1925

  with france, britain, belgium + italy

  agreed to keep existing borders between germany, belgium and france

  germany's return to the european international scene = period of co-operation between germany, france and belgium
• league of nations

  1926 = germany's permanent seat in l.o.n

  international organisation of 1920 to restore peace

  confirmed germany's return to great power status + ensured stresemann's prestige

  RISKY = germans thought l.o.n to be the guardians of the tov
• kellogg-briand pact


  1928

  germany signed with 64 other countries

  keep armies for self defense

  solve all international disputes peacefully
• reason for rentenmark


  1923 hyperinflation destroyed value of german mark + cuased mistrust regarding german currency
• reason for dawes plan

  stresemann realised germany coud not afford to pay reparations

  had many debts to belgium, france and britain

  persuaded france, britain + america to change payment terms
• reason for young plan

  germany = unable to meet reparations payment schedule introduced by dawes plan

  government regularly complained about payment levels
• reasons for locarno pact

  stresemann = determined to improve relations with france + britain and restore germany's international prestige

  reduce features in the tov

  realised france needed to feel secure to co-operate over tov changes
• reasons for joining the league of nations

  to ensure locarno pact would be carried out

  helped bring about the young plan
• reasons for kellogg-briand pact

  showed improved relations between usa + leading european nations

  confirmed germany's existence as a leading european nation
• impact of the dawes plan

  800m marks = invested into the economy

  increasing number of jobs

  increasing production of goods, therefore trade

  positive impact on german economy

  businesses can reinvest and pay tax

  government can use tax to pay off loans
• impact of locarno pact and league of nations

  repaired a sense of security between france and germany

  chain of trade between them

  improvement in german economy

  improvements + success within german companies in france

  increase in income

  pay off debts

  avoiding constantly increasing interest
• may 1924

  reichstag election

  pro weimar parties win

  new government

  sdp = 100 seats
• august 1924


  dawes plan agreed

  800m marks to germany
• december 1924

  2nd reichstag election

  sdp seats = 131

  nazi party = 14
• 1925


  • hindenburg = wins presidential election
  • allied soldiers withdraw from ruhr area
  • germany signs locarno pact
• 1926


  locarno honeymoon period = germany allowed to join l.o.n

  unemployment peaks at 9% of workforce
• 1927


  allied troops withdrew from west bank of the rhine 5 years before agreed
• impact of industrial production

  returned to pre-ww1 levels