Revision:

‘Germany was politically and economically stable in the years 1924-1928’ Assess the validity of this view (political and economic)

AND

‘The improvement of Germany’s international position in the years 1924–29 could not have been achieved without the significant contribution of Gustav Stresemann.’ (international)

1) Involvement of Stresemann

  • Some historians debate the economic success of Stresemann’s economic policies

  • Some historians argue Stresemann saved Germany’s economy - facilitating the 1924-28 Golden Age

  • November 1923 introduction of the Rentenmark - brings inflation under control - bringing the mark back up to original values

  • Stresemann was appointed Chancellor August 1923

  • April 1924 Dawes Plan - restructured Germany’s reparations - making them more manageable - Germany will be able to stabilise it’s economy whilst still paying reparations - possibly making them less hostile now to the countries that imposed the reparations on them

  • August 1929 - the Young Plan - further reduces Germany’s reparations

  • However historians argue that the Dawes and Young plan made Germany reliant on America’s economy for their own economic success - 1929 Wall Street Crash decreases Germany’s economic position again

  • Stresemann’s aims as chancellor - bring inflation under control, regain Europe’s respect and minimise the support of extremist parties

  • Established the DVP

2) Creation of the Rentenmark

  • Created in November 1923 after Germany’s original mark value became extremely low and was beyond saving

  • Resulted in the creation of the Reichsbank to control the Rentenmark - Rentenmark was renamed the Reichsmark by the government

3) The Dawes Plan, 1924

  • Since the signing of the Treaty of Versailles - Germany has been unable to meet the demands of the reparations needing to be paid - £6 billion

  • The USA was in a position to help Germany

  • Dawes was an American banker who proposed the plan

  • The plan stated that there could be a temporary reduction in reparation payments - and the guarantee of American bank loans to help re stabilise the German economy and industry

  • Although the Dawes plan meant that Germany’s international position with America was increased - the Germans thought the Dawes plan was risky - due to the possibility of Germany’s economy being placed at the mercy of America’s prosperity

4) The Young Plan - 1929

  • Allies established a committee to reduce Germany’s reparations further

  • Owen Young led the committee

  • Permanently reduced reparations bill and increased the time Germany had to repay their reparation debts

5) Stresemann’s foreign policies

  • He pursued a number of treaties like the Locarno and Kellog-Briand in order to build better relations with Europe and restore Germany’s position as a world power

  • 1926 - League of nations accepted Germany as a permanent member

  • Stresemann died in office in October 1929

6) The Locarno Treaties - 1925

  • Series of agreements between Germany, Britain, France, Italy and Belgium

  • Terms: France and Germany promised to keep peace, all members promised to keep the Rhineland demilitarised, and exploring the possibility of letting Germany into the League of Nations

  • All nations entered the Locarno Treaties as equals, unlike the Treaty of Versailles

  • The Locarno Pact infuriated the extremists parties in Germany

  • Locarno Treaties were arguably Stresemann’s greatest achievement

  • Reduced the possibility of future wars

  • Improved the reputation of Weimar both nationally and internationally

  • Resulted in Stresemann being awarded the nobel peace prize in 1926

  • Locarno Pacts signed 16th October 1925

7) Joining the League of Nations

  • Boosted German citizens confidence in the Weimar Republic

  • Gained support of the moderate parties

  • However some people wanted nothing to do with the League of Nations as it was associated with the hated Treaty of Versailles

  • Caused and provoked anger among the extremist parties

8) The Kellog-Briand Pact:

  • Signed by Germany and 61 other countries

  • 27th August 1928

  • Stated that war shouldn’t be used as a means for resolving disputes between countries

  • Boosted German citizens’ confidence in the Weimar Republic

  • The world saw Germany as a respectable and trustworthy state

  • However it did not remove the military restrictions imposed by Versailles - angered extremist parties

9) Extremist parties:

  • One of Stresemann’s aims was to reduce the support for extremist parties - his success in financial and political affairs achieved this aim

10) Political assassinations:

  • No political assassinations between 1924 and 1929

11) ‘Golden Age’ Government 1924-29:

  • Six coalition governments - much fewer than pre-1924

  • Ebert died in 1925

  • Hindenburg replaced Ebert as president

  • Hindenburg had conservative, nationalistic views - right-wing middle class respected Hindenburg - increasing their support for the Republic

  • Death of Stresemann - heart attack in October 1929

  • The Republic had lost one of its most capable ministers with his death

  • Wall Street Crash - end of October 1929 - destroyed all the progress Stresemann had made to stabilise Germany

12) Social developments in the golden age:

  • Divide between the industrial and agricultural workers

  • Industrial benefited the most from recovery

  • Agricultural wages were 44% lower than national average wages

  • The establishment of the Weimar Republic marked the start of a social welfare state

  • The 1923 hyperinflation crisis destroyed the government’s vision of a welfare state

13) Economic Recovery:

  • Foreign countries were happier to trade in Stresemann’s new Rentenmark than the previous mark

  • 1923 hyperinflation increased unemployment

  • Vital for the republic to keep the working class happy as communism was attractive to workers

  • Communism threatened the success of German business and industry as it was against owning private property or business

  • Reforms to improve working conditions

  • Workers' 'real' wages rose 25% from 1925 to 1928 - reform to improve working conditions

14) Germany housing and pension crisis:

  • Started in the 1920s - over 1 million home shortage by 1923

  • Utilisation of foreign loans for housing projects

  • Introduction of 15% rent tax to create building associations

  • Private companies and building associations constructed 100,000 new homes 1925-29

  • Introduction of Pensions in the Weimar Republic


  • In 1920, government passed the Reich Pension Law to help war widows

  • Over 1.3 million people received a war-related pension

  • Weimar Germany spent roughly 40% of GDP on this scheme

  • During hyperinflation in 1923, pensioners suffered greatly as their pensions became worthless