Recovery during the Streseman era

When did Streseman become Chancellor?

August 1923 for three months

When was Streseman foreign minister?

November 1923 to his death in October 1929

Who disliked Streseman and why?

The socialists thought he was too extreme, but the nationalists thought he was too moderate. He was mostly popular however apart from the extremists

What were Streseman’s successes?

Ending hyperinflation, renegotiating reparations, and helping Germany to become an international power

How did Streseman end hyperinflation?

He called off passive resistance in the Ruhr, which ensured that goods would be produced again in the industrial region and that no more money needed to be printed to pay for strikes. This in turn ended the French and Belgium occupation of the Ruhr as Streseman promised to pay reparations again. Finally, he introduced the Rentenmark, which stabilised prices due to a limit in this new currency. Ultimately, he restored confidence in the economy.

How long did it take Streseman to end hyperinflation?

Three months

How did Streseman renegotiate reparations?

Although Germany still had to pay reparations, Streseman made the Dawes Plan and the Young Plan to reduce it, and enable Germany to have a stable, secure economy for the future

What was the Dawes Plan?

Proposed in April 1924 and agreed in September that Germany still had to pay 50 billion Marks, but Germany could pay 1 billion in each of the first 5 years, then 2.5 billion the years after that. It left an indefinite amount of time for Germany to pay the reparations. Germany was also loaned 800 million marks from the USA to help boost the German economy in order to pay the reparations

What was the Young Plan?

Proposed in August 1929 and agreed in January 1930 that Germany could pay 20% less in reparations, at 2 billion marks per year (two thirds of which could be postponed if necessary). Germany had 59 years to pay this off, ending in 1988, and also allowed Germany to loan money from America

What is a problem with the Dawes Plan?

It relies on USA loans and investment to boost the German economy. Many Germans were also angry at the terms of the Treaty of Versailles, thinking that the Dawes Plan didn’t get rid of the unfair terms

How did Streseman make Germany an international power?

Germany was allowed to join the Locarno Pact, and later joined the League of Nations in September 1926 after previously being banned

What showed that Germany could be trusted?

Germany promised that it would keep to the Treaty of Versailles’ terms, including the new borders - this allowed the Allies to remove their troops from the Rhineland

How important was Germany when it joined the League of Nations?

Very, since it joined the Council - one of the most important positions

What happened in the Kellog-Briand pact?

Germany was allowed to join, and agreed that it wouldn’t go to war in order to achieve its aims

How did the support for extremist parties change and why?

National support fell because there was confidence that the current government was making beneficial decisions for the country

How did industrial production change under Streseman?

Production levels increased to become higher than they were before 1913 - exports also rose by 40%, and hourly wages rose every year between 1924 to 1929

What schemes did Streseman introduce?

Generous pension, health and unemployment schemes

What was continued weakness in Germany under Streseman?

Agricultural production didn’t improve to recover its pre-war levels, and the government spent more on imports than it earned on exports, so it was continually losing money - that on top of reparations meant thst Germany was struggling under debts

How did unemployment rates change?

Unfortunately, there were never fewer than 1.3 million, and 600,000 more people became unemployed in 1929

How did international relations change?

Germany had gained trust and inclusion in several international agreements in the 1920s. Despite Germans remaining frustrated at the ‘diktat’ as it remained in place

Which agreements did Germany join?

The Locarno Treaties of 1925: agreements between Germany, France and Belgium to stick to the borders of territory defined by Treaty of Versailles

Joining the League of Nations in 1926: once it had signed the Locarno Treaties, Germany was allowed to enter

The Kellog-Briand pact of 1928: one of 62 countries that signed up to an agreement to keep peace and democracy in times of dispute

When did Germany stop working to avoid destructive war?

The Great Depression, caused by the Wall Street Crash