info

• intro of rentenmark - ends hyperinflation

  • nov 1923 - stresemann introduced a temporary foreign currency, the rentenmark, after the reichstag voted to give the government full power to make decisions on currency
  • based upon a mortgage of all land and currency
  • each rentenmark exchanged for 1 trillion of the old marks
  • restored faith in Germany's financial system
• intro of rentenmark - stabilises financial system 


  • the german people now had faith in the German economy
  • 1924 - stresemann was able to set up the reichsbank - a new independent bank, which handled the control of the new currency
  • 1924 - the reichsmark was introduced to replace the rentenmark - this was a new currency that was trusted in both germany and overseas
  • this restored faith in germany's financial system and allowed the economy to grow
• the dawes plan - economic recovery

  • US loans of 800 million gold marks
  • reparation payments lowered for the next 5 years
  • opened the way for foreign capital to come flooding into germany £25.5 billion in loans
  • 1923-29, industrial output doubled
  • used to boost industry and build factories
• the dawes plan - political impact

  • the french agreed to leave the ruhr as reparations would be paid
  • the allies would be given some control over the reichsbank and the railways in germany
  • opposition from nationalists in germany who argued that germany was accepting blame for WW1 by agreeing to continue to pay the reparations
  • also angered that foreign powers were involved in german economic affairs
• the young plan - reparation payments

  • reparation bill was reduced to £2 billion
  • payment over 59 years - germany was to pay a third a year and the rest if they could afford it
  • allowed for further investment in industry
• the young plan - political impact

  • anger from nationalists who resented still having to pay reparations - felt 59 years was too long and would hinder germany's progress as a nation
  • Alfred Hugenburg organised a petition against the plan - 4 million signatures
  • referendum in dec 1929 - only 14% voted against the plan
• reorganise reparations - economic

  • dawes plan = US loans of 800 million gold marks
  • reparation payments lowered for the next 5 years
  • opened the way for foreign capital to flood into germany - £25.5 billion in loans
  • used to boost industry and build factories
  • 1923-29 - industrial output doubled
  • young plan - reparations bill reduced to £2 billion
  • payments over 59 years - germany was to pay a third a year and the rest if the could afford it
  • allowed for further investments in industry
• reorganise reparations - politcal

  • dawes plan = the french agreed to leave the ruhr as reparations would be paid
  • opposition from nationalists in germany who argued that germany was accepting blame for WW1 by agreeing to continuing with reparation payments
  • they were also angered that foreign powers were involved in German economic affairs
  • young plan - anger from nationalists who resented still having to pay reparations - felt 59 years was too long and would limit germany's progress as a nation
• germany joining LofN - relations improve

  • sept 1925, stresemann persuaded other great powers to allow germany to join LofN
  • germany was also allowed a place on the LofN council - significant because the council made important descions
  • partly a result of the locarno treaty and stresemann's diplomatic policies and attempts to improve relations with other great powers
• germany joining LofN - political impact

  • moderate political parties supported Stresemann's diplomatic policies and his attempts to improve relations with other great powers
  • it increases German's confidence in the WR - they could see that their country was finally being accepted into the 'international family'
  • however nationalists saw the LofN as a symbol of TofV and wanted germany to have nothing to do with it
• locarno treaty - relations improve


  • germay accepted its western boards and a demilitarised rhineland
  • germany agreed that alsace-lorraine would be french and in return the french agreed not to occupy the ruhr again
  • signed voluntarily unlike TofV - seemed to end germanys bitter resentment towards her conquerors
  • stresemann said that it would make peace in europe more likely
• locarno treaty - allowed into LofN

  • sept 1925, stresemann persuaded other great powers to allow germany to join LofN
  • germany was also allowed a place on the LofN council - significant because the council made important descions
  • partly a result of the locarno treaty and stresemann's diplomatic policies and attempts to improve relations with other great powers
• kellog-briand pact - relations improve

  • 15 countries met in paris to agree a gerneral treaty for the reunification of war
  • it outlined that germany was among the main powers again
• kellog-briand pact - political impact

  • WR was now respected internationally
  • gave the german public more confidence in the moderate political parties that were running the country