Section C: The recovery of the Republic 1924-29

When did Gustav Stresemann become Chancellor and Foreign Secretary?

August 1923.

What policy did Stresemann end in 1923?
A: Passive resistance in the Ruhr.

What new currency did Stresemann introduce in November 1923?

The Rentenmark.

What backed the value of the Rentenmark?

German industrial plants and agricultural land.

What replaced the Rentenmark in 1924, and who controlled it?

The Reichsmark, controlled by the Reichsbank.

What major problem did Stresemann’s economic reforms solve?

Hyperinflation.

Who created the Dawes Plan?

Charles G. Dawes, an American banker.

How much were reparations temporarily reduced to under the Dawes Plan?

£50 million per year.

How much money did US banks loan Germany between 1924–30?

$25 billion.

What did the French agree to do after the Dawes Plan?

Leave the Ruhr.

Who headed the Young Plan?

Owen Young, an American banker.

How much were reparations reduced under the Young Plan?

From £6.6 billion to £2 billion.

How long did Germany now have to pay reparations?

Until 1988 (59 more years).

Why did Hitler criticise the Young Plan?

He called it “passing the penalty to the unborn.”

What did Germany accept under the Locarno Pact?

Its new 1919 border with France.

Why was the Locarno Pact seen as a success in Germany?

It made war in Europe less likely and showed Germany being treated as an equal.

Why did nationalists criticise the Locarno Pact?

It confirmed the hated Versailles borders.

When did Germany join the League of Nations?

September 1926.

What was agreed in the Kellogg-Briand Pact (1928)?

States would not use war to achieve foreign policy aims.

What was the main limitation of the Kellogg-Briand Pact for Germany?

It did not remove the terms of the Treaty of Versailles.