Edexcel IGCSE History: The Recovery of Germany 1924-29

Who became the Chancellor during hyperinflation and when was he in each of the roles he held?

. Stresemann

. Became Chancellor Aug 1923

. Became Foreign Minister 3 months later

. Died in October 1929

What did Stresemann do to help end hyperinflation?

. Called off 'passive resistance'

. Promised to pay reparations again (so occupation of the Ruhr ended by 1925)

. Introduced a new currency called the Rentenmark - only a limited number were printed so it rose in value. Helped restore confidence in German economy.

. Reduced the government's budget deficit (how much more they spend than they get in taxes) by reducing government spending

What was the first international plan to help restore the German economy, when was it worked on, and by whom?

. Dawes Plan

. 1924

. 2 experts in finance from each of the nations: USA, UK, France, Belgium, Italy worked on it

What did the Dawes Plan decide to do?

. Remove French and Belgium troops from the Ruhr

. Restructure reparations payments - 1 billion marks to be paid each year the first 5 years and 2.5 billion per year after that

. Restructure Weimar's national bank (the Reichsbank) which would be supervised by the allies

. USA loaned Germany 800 million Marks

What was the second international plan to help restore the German economy and when was it worked on?

. Young Plan

. Started to be negotiated in 1929, signed in 1930

What did the Young Plan decide to do?

. Reduce total reparations by 20%

. Reduce yearly payment to 2 billion marks, 2/3 of which could be postponed each year if necessary

. End reparations payments in 1988 (59 years later)

. US banks would continue loans to Germany

Success of German economy stats 1924-29

. Industrial output doubled 1923-28

. 1928 industrial production exceeded that of 1913

. 2nd greatest industrial power (behind USA) by 1928

Problems with German economy stats 1924-29

. Dependent on US loans which could be withdrawn at any moment

. Around $25 billion invested into German economy in 1924-30

. Farmers doing very badly - they'd taken out loans during the war to expand production. At end of war demand and prices fall so farmers are left with very high debts

. Middle classes not doing well e.g University professor before war earned 10x a miner's salary, now earning 2x

. Still around 6% unemployed

Success in politics stats 1924-29

. In 1928, 70% voted for parties supporting democracy

. 1928 Nazi Party only gets 12 seats - 3% of votes

. After 1923 no more violent attempts to overthrow the government

Problems with politics stats 1924-29

. 30% still voting for non-democratic parties

. Many coalition governments, 4 different chancellors

. 1925 Hindenburg is elected president (asked Kaiser for permission before he stood and was openly against democracy)

. Communist and Nazi Part building organisations - by 1928, Nazi Party has 100,000 members

What international agreements did Germany sign in 1925?

. Locarno Treaties

. Germany, France, and Belgium agree to respect their post-Versailles borders

. Germany agreed with Poland and Czechoslovakia to settle any border disputes peacefully

What international success did Germany have in 1926?

. League of Nations was set up as part of Versailles agreement. Germany wasn't included.

. Signing Locarno Treaties showed other countries Germany was accepting the Versailles settlement

. In 1926, Germany accepted as a permanent member of the Council of League, making it one of the most powerful countries in the League

What international agreement did Germany sign in 1928?

. Kellogg-Briand Pact

. Signed by 62 countries (including Germany)

. Agreed to settle all disputes peacefully (without military force)