history edexcel igcse germany- germany’s recovery

Give two effects of the Rentenmark

• Inflation was halted

  • Gustav Stresemann introduced the Rentenmark to replace the old mark - prices stopped rising

  • The number printed was controlled so hyperinflation wouldn’t happen again from over printing

  • This was replaced by the permanent Reichmark with the Reichsmark controlling it.

• Confidence in the economy and Government were restored

  • Foreign countries could rely on the currency so they began trading with Germany again.

  • This led to increased Weimar popularity: the Government was able to control crisis (more trust)

  • Stresemann felt empowered to sort out reparations and ensure economy recovery (with the Dawes Plan)

Give two effects of the Dawes Plan and US loans

• German economy recovered

  • American Charles Dawes helped Germany by loaning $800 million in April 1924

  • Reparations were lowered to 1000 million marks for 5 years (and 2500 million after that), so they were more affordable and so industry was boosted in Germany.

  • The French agreed to withdraw from the Ruhr, returning 80% of coal/ iron reserves

• Germany has economic reliance on the US

  • By receiving loans from the USA, Germany became reliant on the US economy

  • Some disliked the Plan as Germany was colluding with the old enemy and accepting reparations

  • In October 1929, the Wall Street Crash meant that USA recalled Germany loans, leading to economic collapse in Germany as banks had to withdraw loans from businesses

Give two effects of the Young plan

• eased reparations burden

  • reparations were reduced from 132000 million marks by 20% in 1929, easing the pressure

  • Payments were payable over 59 years so the economy was less harmed by the reparations

  • This lead to tax reductions in Germany, more jobs were being created and the industry was boosted

• There was criticism for the long term reparations bill

  • Many felt that the timescale was too long and the Gogernment was accepting war guilt

  • Hitler stated that it passed the penalty of the war to the unborn and would wreak long term damage to the conom7

  • However in a referendum on the matter, only 14% of people disagreed with the plan

Give two features of the Locarno Treaties

• Settled uncertainties on borders

  • Germany agreed in 1925 to accept the Versailles borders: Alsace-Lorraine would stay French

  • The French agreed not to reinvade the Ruhr and demilitarize the Rhineland, giving reassurance

  • Extremist parties disliked Stresemann again accepted Versailles - humiliating to Germany

• Germany was treated as an equal internationally

  • Germany could be trusted again and treated well (by demilitarizing the Rhineland)

  • European relations improved - they agreed to avoid military force and hostility, better relations

  • As a sign of growing peace, Germany was admitted into the league of Nations in 1926 and foreign investment increased

Give two effects of the League of Nations

• Trust in Germany increased

  • Germany was invited into the League of Nations in 1926, showing countries trusted Germany

  • Stresemann joined the League Council, helping make the most important decisions

  • Disputes were less likely to occur as nations could work towards peace making war less likely

• Restored trust in Weimar

  • Germans grew more confident in Weimar being able to handle their affairs on the world stage

  • Support increased for the moderate parties (e.g. SDP) as diplomacy helped improve relations

  • There was increased foreign investment in German industry – but some again disliked joining the League as it was created as part of the Treaty of Versailles

Kellogg-Briand Pact

• Trust in Germany increased

  • In 1928, 60+ (including Germany) countries signed this pact, agreeing not to go to war

  • The former enemies agreed not to use military force: peace became more likely

  • Weimar became more respected internationally, leading to less reparations in 1929 (Young Plan)

• Restored trust in Weimar

  • Support for moderate parties increased as Stresemann made Germany strong/well-respected

  • Germans grew more confident in Weimar & future peace – something good after the war

  • However, some still disliked Germany settling for peace with its old enemies – they disliked Germany being humiliated