1.1.5
Weimar Recovery
The Stresemann Era (1924-1929) - Economic Recovery
The Stresemann Era (1924-1929) - Economic Recovery
The Weimar Republic overcame some of their difficulties with the help of Gustav Stresemann. He was Chancellor in 1923 and Foreign Minister from 1923-29. Between 1924 and 1929, German citizens came to accept the Weimar Republic, and so did international powers.
![Illustrative background for Stopping hyperinflation](https://image-v2.cdn.app.senecalearning.com/2018-03/b7b43f9a-9bbe-42b8-b045-e6c857bf1823/shutterstock_27342460,h_400,q_80,w_640.jpg)
![Illustrative background for Stopping hyperinflation ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/b7b43f9a-9bbe-42b8-b045-e6c857bf1823/shutterstock_27342460,h_400,q_80,w_640.jpg)
Stopping hyperinflation
Stopping hyperinflation
- To help stop hyperinflation, Stresemann called off passive (non-violent) resistance in the Ruhr.
- In November 1923, Stresemann set up a new currency called the ‘Rentenmark’.
- Unlike the previous currency, Rentenmark was tied to the price of German land and held real value.
- In August 1924, this currency was renamed the Reichsmark and placed under the control of the Reichsbank. With this new currency, hyperinflation was stopped.
![Illustrative background for The Dawes Plan, 1924](https://image-v2.cdn.app.senecalearning.com/2018-03/29db8108-56b5-4df1-b83f-7643abf2839c/shutterstock_132159902,h_400,q_80,w_640.jpg)
![Illustrative background for The Dawes Plan, 1924 ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/29db8108-56b5-4df1-b83f-7643abf2839c/shutterstock_132159902,h_400,q_80,w_640.jpg)
The Dawes Plan, 1924
The Dawes Plan, 1924
- Stresemann helped negotiate the Dawes Plan, which helped Germany pay their reparations (payments to the victors).
- In 1924, Banks in the US loaned 800 million Reichsmarks to German industries.
- Reparation instalments (fixed regular payments) were temporarily made £50 million a year.
![Illustrative background for The Young Plan, 1929](https://image-v2.cdn.app.senecalearning.com/2018-03/3f758f87-de5d-4b79-9a3f-75692c581a20/shutterstock_785842684,h_400,q_80,w_640.jpg)
![Illustrative background for The Young Plan, 1929 ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/3f758f87-de5d-4b79-9a3f-75692c581a20/shutterstock_785842684,h_400,q_80,w_640.jpg)
The Young Plan, 1929
The Young Plan, 1929
- Stresemann next negotiated the Young Plan, which proposed to reduce German reparations (payments to the victors).
- In 1929, the Young Plan planned to lower the total reparations from £6.6 billion to £2 billion.
- The payments would continue until 1988.
![Illustrative background for The Wall Street Crash and the Young Plan](https://image-v2.cdn.app.senecalearning.com/2018-03/33f4b002-7789-4140-856a-f015ada97915/shutterstock_22722853,h_400,q_80,w_640.jpg)
![Illustrative background for The Wall Street Crash and the Young Plan ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/33f4b002-7789-4140-856a-f015ada97915/shutterstock_22722853,h_400,q_80,w_640.jpg)
The Wall Street Crash and the Young Plan
The Wall Street Crash and the Young Plan
- The Wall St Crash abruptly stopped the Young Plan in 1929.
- American banks had to recall loans made to Europe, undermining (reducing the effectiveness of) the Young Plan.
- By 1933, 4 years after the Wall St Crash, world trade had fallen by over 60%. This got rid of any chance of German success through exporting (selling to other countries).
- German exports had risen 40% between 1925 and 1929.
![Illustrative background for Economic recovery](https://image-v2.cdn.app.senecalearning.com/2018-03/b9f99608-af18-499d-a94a-af7732ffc4bf/shutterstock_115189144,h_400,q_80,w_640.jpg)
![Illustrative background for Economic recovery ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/b9f99608-af18-499d-a94a-af7732ffc4bf/shutterstock_115189144,h_400,q_80,w_640.jpg)
Economic recovery
Economic recovery
- To an extent, the economy did recover.
- By 1928, industrial production levels were higher than they were in 1913.
- Between 1925 and 1929, exports rose by 40%.
- In 1927, the Weimar Republic set up a number of pension, health and unemployment schemes to help German society.
![Illustrative background for The insecurity of the economy](https://image-v2.cdn.app.senecalearning.com/2018-03/5ab074d9-ae6b-4013-937c-2a3517a30779/shutterstock_242816347,h_400,q_80,w_640.jpg)
![Illustrative background for The insecurity of the economy ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/5ab074d9-ae6b-4013-937c-2a3517a30779/shutterstock_242816347,h_400,q_80,w_640.jpg)
The insecurity of the economy
The insecurity of the economy
- But the economy was not completely secure.
- Economic recovery depended on American loans.
- Unemployment was still a big problem for Germany.
- Germany spent more money on imports than they received on exports, a ‘trade deficit’.
The Stresemann Era (1924-1929) - International Recovery
The Stresemann Era (1924-1929) - International Recovery
To an extent, the Weimar Republic overcame their difficulties with the help of Gustav Stresemann. As well as helping the domestic economy, Stresemann was crucial to Germany re-entering European politics.
![Illustrative background for Foreign policy achievements](https://image-v2.cdn.app.senecalearning.com/2018-03/96fe4c8c-89e0-486f-9aef-84f1b910e68c/shutterstock_1038271633,h_400,q_80,w_640.jpg)
![Illustrative background for Foreign policy achievements ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/96fe4c8c-89e0-486f-9aef-84f1b910e68c/shutterstock_1038271633,h_400,q_80,w_640.jpg)
Foreign policy achievements
Foreign policy achievements
- Stresemann’s key foreign policy achievements were the Locarno Pact, League of Nations and Kellogg-Briand Pact.
- Because of his domestic (at home) and foreign achievements, the German population became more confident in the Weimar Republic.
- Their support for extremist parties, such as the Communists and Nazis, weakened.
![Illustrative background for Locarno Pact, 1925](https://image-v2.cdn.app.senecalearning.com/2018-03/042f6872-0d7d-41e7-83f4-e42aae3ed63d/shutterstock_73792807,h_400,q_80,w_640.jpg)
![Illustrative background for Locarno Pact, 1925 ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/042f6872-0d7d-41e7-83f4-e42aae3ed63d/shutterstock_73792807,h_400,q_80,w_640.jpg)
Locarno Pact, 1925
Locarno Pact, 1925
- In 1925, Germany signed an agreement with Great Britain, France, Italy and Belgium called the Locarno Pact.
- In this pact, Germany recognised their borders with France and the demilitarisation (withdrawing military from an area) of the Rhineland.
![Illustrative background for League of Nations, 1926](https://image-v2.cdn.app.senecalearning.com/2018-03/2e61ae36-0ba1-4e1c-b552-1ec2035a4424/shutterstock_111577829,h_400,q_80,w_640.jpg)
![Illustrative background for League of Nations, 1926 ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/2e61ae36-0ba1-4e1c-b552-1ec2035a4424/shutterstock_111577829,h_400,q_80,w_640.jpg)
League of Nations, 1926
League of Nations, 1926
- In 1926, Germany was invited to join the League of Nations.
- US president Woodrow Wilson set up the League of Nations, which was an international peacekeeping body.
![Illustrative background for Kellogg-Briand Pact, 1928](https://image-v2.cdn.app.senecalearning.com/2018-03/f5a73609-732a-4f78-b895-8e8bff74f1d4/shutterstock_73792807,h_400,q_80,w_640.jpg)
![Illustrative background for Kellogg-Briand Pact, 1928 ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/f5a73609-732a-4f78-b895-8e8bff74f1d4/shutterstock_73792807,h_400,q_80,w_640.jpg)
Kellogg-Briand Pact, 1928
Kellogg-Briand Pact, 1928
- In 1928, Germany signed the Kellogg-Briand Pact with 62 other countries.
- In this pact, countries agreed to disarm (give up or reduce armed forces) and not use war to resolve disagreements.
![Illustrative background for The Treaty of Rapallo, 1922](https://image-v2.cdn.app.senecalearning.com/2019-07/ee73b3e7-c4ef-4b9b-95be-ea8784a9614a/russia-,h_400,q_80,w_640.png)
![Illustrative background for The Treaty of Rapallo, 1922 ?? "content](https://image-v2.cdn.app.senecalearning.com/2019-07/ee73b3e7-c4ef-4b9b-95be-ea8784a9614a/russia-,h_400,q_80,w_640.png)
The Treaty of Rapallo, 1922
The Treaty of Rapallo, 1922
- The 1922 Treaty of Rapallo improved German-Russian relations.
- Curiously the Russian Communists agreed to allow the German army, the Reichswehr, to use Russian training camps which the USA, Britain, and France could not discover. This would allow the German army to train with tanks, banned under the Treaty of Versailles.
![Illustrative background for Internal threats to the Weimar Republic](https://image-v2.cdn.app.senecalearning.com/2018-03/11238f67-858d-456f-b6e9-1d73fef745ca/shutterstock_620759114,h_400,q_80,w_640.jpg)
![Illustrative background for Internal threats to the Weimar Republic ?? "content](https://image-v2.cdn.app.senecalearning.com/2018-03/11238f67-858d-456f-b6e9-1d73fef745ca/shutterstock_620759114,h_400,q_80,w_640.jpg)
Internal threats to the Weimar Republic
Internal threats to the Weimar Republic
- Despite the achievements, the Weimar Republic still faced potential threats.
- The German population still resented (felt bitter about) the Treaty of Versailles and the League of Nations.
- Although support for extreme left and right-wing parties had declined, the Communist and Nazi Parties still existed.
1The Weimar Republic 1918-1929
2Hitler's Rise to Power 1919-1933
2.1Early Development of the Nazi Party
2.2The Munich Putsch & the Lean Years
2.3The Growth of Support for the Nazis
3Nazi Control & Dictatorship 1933-1939
3.1Creating a Dictatorship, 1933-1934
3.2The Police State
4Life in Nazi Germany 1933-1939
4.1Life in Nazi Germany
Jump to other topics
1The Weimar Republic 1918-1929
2Hitler's Rise to Power 1919-1933
2.1Early Development of the Nazi Party
2.2The Munich Putsch & the Lean Years
2.3The Growth of Support for the Nazis
3Nazi Control & Dictatorship 1933-1939
3.1Creating a Dictatorship, 1933-1934
3.2The Police State
4Life in Nazi Germany 1933-1939
4.1Life in Nazi Germany
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