Recovery of Germany 1924-29

• What did Gustav Stresseman achieve?

  Gustav Stresemann achieved economic stability and improved international relations for Germany. This resulted in him winning a Nobel Peace prize.
• What was the Rentenmark?

  A temporary currency introduced in 1923 to stablize the currecy after hyperinflation. Its printing was tightly controlled.
• How did Stresseman resotre people's confidence in the Rentenmark?

  He promised to exchange notes for shares in German land or industry if the currency failed.
• What was Reischbank, when was it established?

  In 1924, the reischbank was a new independent German national bank which controlled the new currency.
• What was the Reischmark?

  A permanent currency which replaced the Rentenmark. It was Germany's new currency which German and foregin citizens could rely on. It was established in the same year as the Reischbank.
• What were Stresseman's beliefs about Germany's foreign relations?

  Stresemann believed in pursuing a policy of reconciliation and cooperation with other nations, especially Britain, France and the USA.
• What happened during the Dawes plan in 1924?

  - Usa loaned 800 million gold marks which resulted in an industrial boost to the economy.

  - Reparations wer elowered to 1000 million marks for the first 5 years and would then increase to 2,500 millions marks.

  - French agreed to leave the Ruhr and to not make any independent decisions without consulting the allies.

  - Allies had some control over the new currency and a few railways.

  - Allies agreed to be more lenient with the payment rate due to Germany's economic situations.
• What were the bad results of the Dawes Plan?

  Loans were not an effective long term solution as Germany had to pay them back with interest.