Part 2_3 Germany development of dictatorship, 1918–45

SCHOOL HISTORY

Subject: Recovery of Germany, 1924-29

Focus: Edexcel International Paper 1, Depth Studies

Context: Development of dictatorship in Germany, 1918-45

Instructions for Use

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Learning Objectives

• Understand the work of Gustav Stresemann and his influence on Germany's recovery.

• Analyze the role of the United States in recovering the German economy and how foreign policies shaped the outcomes.

• Assess foreign policies related to reparation payments and their impact on German stability.

Important Keywords:

• Rentenmark: A new currency developed to stabilize the German economy.

• League of Nations: An international organization aimed at maintaining world peace.

• Arbitration Treaties: Agreements to resolve disputes between nations diplomatically.

Quote by Gustav Stresemann

Context: Diplomatic frustration towards the Allies post-WWI

Quote Summary:

Stresemann expresses feelings of betrayal by the Allies, emphasizing the lost opportunities for lasting peace and reconstruction, particularly focusing on the crucial role of the youth in shaping Germany's future.

Themes of the Module

Key events, people, and concepts in post-WWI recovery of Germany:

• Stresemann's work: Instrumental in revitalizing Germany's international relations.

• Economic plans: Implementation of the Rentenmark, Dawes Plan, and Young Plan as foundational economic strategies.

• US loans and economic recovery: The significant influence of American loans in stabilizing the economy.

• Successes: Involvement and acceptance in international agreements like the League of Nations, the Locarno Treaties, and the Kellogg-Briand Pact.

Gustav Stresemann

• Birth: May 10, 1878, Berlin, Germany

• Political Career:

  • Chancellor (1923) for three months, navigating crises during hyperinflation.

  • Served as Foreign Minister until his untimely death in 1929, emphasizing diplomacy.

• Contributions:

  • Restored Germany’s international standing, facilitating reintegration into international society.

  • Awarded the Nobel Peace Prize (1926) for efforts in reconciliation and fostering peace in Europe.

• Political Activity:

  • Formed the German People's Party post-armistice.

  • Elected to the National Assembly and the Reichstag, advocating for democratic policies.

Economic Improvements in Weimar Germany

Economic Overview:

• Faced a severe economic collapse post-WWI, leading to rampant hyperinflation.

• Implementation of the Rentenmark helped to stabilize and rebuild the economy.

Improvements for Working Citizens:

• Hourly wages increased significantly, contributing to improved living conditions.

• Introduction of government pensions and sickness benefits, providing a safety net for workers.

• Compulsory unemployment insurance initiated by 1927, addressing the rising unemployment rate.

• Substantial investment in infrastructure, including local parks, schools, and sports facilities, promoting community well-being.

Introduction of the Rentenmark

Stresemann’s Policy:

• Introduced a new currency, the Rentenmark, backed by land and assets to restore confidence in Germany’s economy.

• Production of currency limited to stabilize the economy and prevent hyperinflation.

• This significant policy shift ended hyperinflation crises and restored public trust in the financial system.

The Dawes and Young Plans

Dawes Plan (April 1924):

• Proposed by Charles Dawes, aimed at restructuring Germany's reparations payments.

• Provided improved economic support despite ongoing reparation obligations, facilitating foreign investments.

• Foreign loans from the US played a critical role in stabilizing the economy.

Young Plan (1929):

• Proposed by Owen Young, aiming for a further reduction in reparations and extended payment terms.

• Established the International Reparation Bank to manage reparations and improve economic relations.

Details of Economic Plans

Dawes Plan Key Features:

• Reduced reparation payments by 20%, easing the burden on the German economy.

• US loans coordinated with JP Morgan, fostering international financial cooperation.

• Payment structures arranged over 59 years, providing long-term financial planning for Germany.

Young Plan Key Features:

• Annual payments lowered to 1 billion marks, reducing immediate financial pressure.

• Options introduced for postponement of payments if necessary, adding flexibility to Germany’s obligations.

Successes Abroad

League of Nations:

• Established post-WWI as a forum for global order and cooperative diplomacy.

• Aimed to prevent secret treaties and militaristic alliances that had led to the war.

• Improved relations allowed German businesses to attract US investment, further stabilizing the economy through reparation deals.

The Locarno Treaties

Negotiation Details:

• Held in Locarno, signed December 1, 1925.

• Agreements focused on securing European borders and promoting arbitration between nations to avoid conflict.

• Established a sense of peace and reassured Germany's participation and status in the League.

• Marked a turning point for diplomacy, though violated by Germany in 1936 during the occupation of the Rhineland.

Kellogg-Briand Pact

Agreement Summary:

• Signed in 1928 by 15 nations aiming to prevent war as a means of dispute resolution.

• Tested during the 1931 Mukden Incident, showing the challenges of enforcing peace.

• Promoted ideals of disarmament and international cooperation, while notably excluding the League of Nations from enforcement actions.

• Notably authored by Frank W. Kellogg and Aristide Briand.

Glossary of Terms

• League of Nations: An association aimed at resolving disputes post-WWI and maintaining world peace.

• Rentenmark: Currency created to combat hyperinflation in Germany, crucial for economic stabilization.

• Arbitration Treaty: A formal agreement to resolve conflicts between countries diplomatically to prevent war.

Task #1 - Diplomacy and Weimar Republic

Key Discussion Points:

• Explore the role of diplomacy in opposing the Weimar Republic and its challenges.

• The impact of public opinion and the volatility of diplomatic initiatives during Stresemann's tenure.

Task #2 - Source Analysis

Objective: Discuss the meaning and implications of historical sources during this period for a comprehensive understanding of the events.

Task #3 - Peace Efforts

Perspective on Locarno Spirit:

• Historian Sally Marks reflects on both the hope and fragility of peace during the Locarno era, highlighting the tensions that underlie the agreements made.

Homework Preparation

Assignments:

• Create a spider diagram and infographic on Hitler's SA and its appeal during the rise of extremism in Germany.

• Investigate the impact of the Great Depression on extremist parties from 1928-1932, analyzing shifts in political power and public sentiment.