Recovery

• Stresemann introduced a New Currency

  -Gustav Stresemann was Chancellor of the Weimar Republic between AAugust and November 1923. He made important changes to help Germany to recover from its economic crisis,

  -In September 1923, he ended the strike in the Ruhr. This reduced tension between Germany, France and Belgium, and meant the government could stop compensation payments to strikers.
• Stresemann introduced a New Currency

  -In November 1923, Stresemann replaced the German Mark with the Rentenmark to stabilise Germany's currency.

  -Stresemann created the ‘great coalition’-- a group of moderate, pro-democracy socialist parties in the Reichstag who agreed to work together. This allowed parliament to make decisions more quickly.
• Stresemann wanted International cooperation

  In November 1923, Stresemann became Foreign Minister. He tried to cooperate more with other countries and build better intentional relationships. Germany's economy prospered as a result.
• -The Dawes Plan was signed in 1924. Stresemann secured France and Belgium's withdrawal from the Ruhr and agreed more realistic payment dates for the reparations. The USA lent Germany 40 million pounds to help it pay off its other debts.

  -The Young Plan was agreed in 1929. The Allies agreed to reduce the reparations to a quarter of the original amount and Germany was given 59 years to pay them.

  -The Locarno Pact was signed in October 1925. Germany, France and Belgium agreed to respect their joint borders– even those created as a result of the TOV
• -The LON allowed Germany to join in 1926. Germany was re-established as an international power.

  -The Kellogg-Briand Pact was signed by Germany in 1928, alongside 65 other countries. They promised not to use violence to settle disputes 
• Germany had begun to Recover– but depended on US Money

  -Life was beginning to look better for Germany thanks to the work of Stresemann

  -But he died in October 1929, just before the disaster of the Wall Street Crash- a massive stock market crash in the USA which started a global economic depression.
• Germany had begun to Recover– but depended on US Money

  -The plans he had agreed would only work if the USA had enough money to keep lending to Germany– but after the crash, it didn't. Things were suddenly going to get worse again.

  Germany's economic recovery helped restore faith in the Weimar Republic- there was strong support for pro-Weimar political parties in the 1928 elections.