Gustav Stressemann and the Golden Years of Weimar

How Gustav Stressemann completely transformed the Weimar's economy state.

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Stressemann's Achievements

1. The Rentenmark

In 1923, Stressemann introduced the rentenmark, which was a new currency designed to help solve the problems caused by hyperinflation and restore Germany's economy! Old notes were collected and destroyed.

2. The Dawes Plan

The dawes plan was drawn up in 1924 when Stressemann was foreign minister. Annual reparations were reduced , and the allies agreed not to occupy Germany if payment isn't met. A large loan was also taken from America to help stabilise the economy.

3. The Locarno Pact

This stated that no representing country should attack one another as a means of solving arguments, or change it's boundaries.

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Stressemann's Achievements

4. The League of Nations

In 1926, thanks to the locarno pact, Germany was finally able to join the league of nations and was given a seat of the council. This helped promote lasting peace.

5. Kellog-Briand Pact

In 1928, the Kellog-Briand pact (or the Paris Pact) was signed by Germany and over 60 other countries. This renounced the use of war as a solution to arguments, "recourse to war for the solution of international controversies. 

6. The Young Plan

This was built on the Dawes plan in 1929 in that it extended reparation payments for a further 58 years. This aimed to give Germany more confidence in their economy, which would encourage investment.

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EXAM QUESTION TIPS- How far did the Weimar Republic recover under Stressemann?

  • Intro paragraph- Describe prev. state of German economy - hyperinflation, invason of Ruhr, lack of trust in government-instability from lack of majority vote.
  • Introduce Stressemann (chancellor 1923, foreign minister 1924), describe improving relations which helped with Dawes plan.
  • Describe Dawes plan- failure to pay, signed by allies, agreement not to invade, thanks to new bonds with America large loan borrowed to stabilise economy, 800million marks total.
  • Describe how loan helped improve industry and new production techniques (33% more production than in 1913 and more than both England or France). Explain how short term loans were risky as could be ended at any time, however had improved economy.
  • Describe Locarno Pact 1925- signed by Germany, Italy, UK, France, Belgium, peace pact, nobody should attack esch other to settle arguments, no change of boundaries, both to prevent another war.- this restored some confidence in government, and "spirit of Locarno" led to application to league of nations 1926.
  • Describe how joining league of nations promoted peace throughout Germany and Europe- thought to prevent Germany from allying with Russia
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  • Describe a few things that improved- eg. having money for public works, so stable in 1927 that a welfare legislation was introduced to guarentee healthcare, income and to improve quality of life
  • Describe negatives- More jobs-more tax, angered Germans, worried about economic siuation, continued support in extremeist groups.
  • Draw into conclusion-summarise points
  • Answer question- dramatically imporved state of economy, but flaws in many plans (built on sand) which lead to Germany's collapse after wall st. crash.
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