Stresemann era

November 1923       Retenmark

• Stresemann set up new state-owned bank, The Rentenbank
• Issued new currency, The Rentenmark
• Bank note printed in limited supply backed by land and industrial plant
• German people showed confidence in it
• 1924 newely independent national bank, The Reichsbank
• Given control of currency
• Renamed Reichsmark (backed by Gold)
• Gradually restored value of German money
• German money trusted home and abroad 

April 1924        Dawes Plan

• Suggested by Charles G Dawes, American Banker
• Plan addressed reparations issue:
•  Reorganised & reduced reparations to affordable level
• US banks give loans to german indusrty 1923-1928
• Reassured Allies that they would get payments
• Stresemann called off passive resistance in the Ruhr
• French agreed to leave the Ruhr

                               Improved Germany's Economy

• 1923-1928 Industrial output doubled, fuelled by US loans
• Imports and exports increased
• Employment went up
• Government income from taxation improved
• Most Germans were reassured

                                              Negatives

• The extreme political parties hated The Treaty of Versailles
• Furious Germany had agreed to pay reparations again
• Fragile economic recovery depended on US loans, Wall Street Crash

August 1929           The Young Plan

• Stresemann agreed young plan in last year of his life
• Put foward August 1929 by a comittee set up by the Allies
• Headed by Owen Young, American Banker
•  Young Plan reduced total reparations £6.6 billion to £2 billion
• Further 59 years to pay
• Reduced annual amount government had to pay
• Possible to lower taxes
• Released spending power, boosted Germany's industry and employment
• Most saw this as a success for Stresemann

                            Drawbacks

• Annual repayments were still £50 miilion per year
• Stretched out until 1988
• Several extreme political parties were incensed
• Adolf Hitler said extending the lengthof payments was "passing on the penalty to the unborn"

October 1925               The Locarno Pact

• Stresemann made progress in international affairs
• October 1925 signed The Locarno Pact
• Treaty between Germany, Britain, France, Italy and Belgium
• Germany agreed to keep its new 1919 boarder with France and Belgium. In return:
• The last allied troops left the Rhineland
• France promised peace with Germany
• Powers agreed talk Germany's membership  League of Nations
• Triumph- war with Europe less likely
• Stresemann given Nobel Peace Prize 1926
• Germany treated as equal, not dicated to
• People resented fact that hated Versaille boarders been confirmed

September 1926       League of Nations

• End of WW1 Allies founded the League of Nations
• International body where powerful countries discussed solutions world problems
• Germany excluded from membership
• September 1926,Stresemann persuaded powers accept Germany
• Germany given place on League of Nations Council- which took the most important decsions of the League
• Not all poltical parties agreed this was good
• League symbol of hated Treaty of Versailles
• Stresemanns view different saw it another step towards Germany's equality with other nations

August 1928       Kellogg- Briand Pact

• August 1928 Germany and 61 other countries signed the Kellog- Briand Pact
• Pact promised states would not use war to achieve foreign policy aims
• Work of French and US foreign ministers, named after them
• US not in League of Nations, saw this as a way for US to assist peace
• Germany- sign of better relationswith France and US
• Showed Germany as respected member of World Community
• seen as another sign the Weimar Republic was now a success

                Evidence for Recovery

• Politics became more stable
• Extremist parties less popular
• Unemployment fell
• New roads, railways and homes were built
• 1928, German industry was back to pre-war levels
• 1930, Germmany was a major exporter
• Germany was accepted by other countries again

                                       Remaining Problems

• Still plenty of short-lived coalition governments
• Extremist parties still around
• Still high unemployment levels
• Everything relied on US loans
• German industry slowed down after 1927
• Farming never really picked up
• Relied on US buying its exports
• German nationalists hated the Dawes and Young plan