Recovery of the republic (1924-29)

• Recovery of the republic

  Rentmark and Gustav Stressman:

  the rentenmark was a new currency, created by stresemann to replace the reichsmark, which had become worthless due to hyperinflation. the rentenmark, introduced in november 1923, was supported by the german public and many businesses. in 1924, the national bank (reichsbank) was allowed to control the new currency and supervise its use in the economy.
• Recovery of the republic

  Dawes plan (1924):

  the dawes plan (devised by an american banker called charles dawes) was an agreement between germany and the allies. its basic idea was to make it easier for germany to pay reparations. the two key parts were: reparations were reduced in the short term to 50 million pounds per year, and the US gave loans of $25 billion to germany to help rebuilt its industrial capacity. as a result, reparation payments resumed and the french also ended their occupation of the ruhr. germany's economy began to thrive and employment rose.
• Recovery of the republic

  Young plan (1929):

  the young plan (named after an american banker called owen young, who oversaw the plan) was agreed between germany and the allies. it simply cut the reparations from €6.6 billion to £2 billion. in addition, it also gave germany 59 years to pay the reparations. whilst this agreement did make it easier for germany, not everyone agreed with it, especially those who resented the treaty of versailles. despite this opposition, most germans supported the plan and, when a referendum was held, 85% of the electorate was in favour.
• Recovery of the republic

  Locarno pact (1925):

  the locarno pact was an agreement, signed on the lst of december 1925, between france, britain, belgium, italy, and germany. the locarno pact had three main aims: to secure the borders of the nations of europe after wwl, to ensure the permanent demilitarisation of the rhineland - since france had been invaded multiple times by germany, and to begin negotiations to allow germany into the league: nations. stresemann signed the pact as he believed it would make conflict less likely and increase confidence in germany. the pact got stresemann awarded the nobel peace prize in 1926 but also showed that germany was finally being treated as an equal partner in foreign affairs. hewever, extremist parties still despised the weimar republic and felt further betrayed.
• Recovery of the republic

  League of nations:

  the league of nations was an international organisation created at the end of wwl, designed to be an area for international disputes to be resolved (a method to avoid war). when the league was first set up, germany was excluded but later joined after the locarno pact was signed. in september 1926, germany was admitted into the league. the impact was that it boosted confidence in foreign powers.
• Recovery of the republic

  Kellog-briand pact (1928):

  the kellogg-briand pact was an international agreement between 62 countries, germany being one of them. the overall aim was to agree to not use war as a solution for ending international disputes. crucially, the agreement also included the US, who were not members of the league of nations but still wanted peace. for germany, this pact was significant because they were included as an equal pariner and they were seen a serious power.
• Recovery of the republic

  Domestic policies and stressman:

  stresemann had sought to make germany a respected country, by both its own people but by foreign countries. he did this through dawes plan, young plan, locarno pact, league of nations, and kellogg-briand pact. it was clear in elections that this confidence existed, as support for extremist parties fell away. however, this rise in confidence didn't last, stresemann's death from a heart attack in october of 1929 came ironically weeks before the wall street crash.