Gustav Stresemann and Charles Dawes
Gustav Stresemann had been a nationalist, but he realised that something needed to be done to save Germany. The most important thing he did in 1923 was to organise the Great Coalition of moderate, pro-democracy parties in the Reichstag. At last, Germany had a government that could make laws! Under Stresemann's guidance, the government called off the strike, persuaded the French to leave the Ruhr and even got the rest of the world to allow Germany to join the League of Nations in 1926.
Stresemann also introduced reforms to help ordinary people such as job centres, unemployment pay and better housing.
Charles Dawes was the US budget director. In 1923, he was sent to Europe to sort out Germany's economy. Under his advice, theGerman Reichsbank was reformed and the old money was called in and burned. This ended the hyperinflation. Dawes also arranged the Dawes Plan with Stresemann, which gave Germany longer to pay reparations. Most importantly, Dawes agreed to America lending Germany 800 million gold marks, which kick-started the German economy.
Gustav Stresemann and his economic Policies
- Young Plan 1929: The Young Plan further reduced reparations to 112 billion Gold Marks – then equal to about $8 billion. The money was set to be paid over 59 years with the equivalent of $473 million paid each year.
- Kellogs Briand Pact 1928: The Kellogg-Briand Pact was an agreement to outlaw war signed on August 27, 1928. Sometimes called the Pact of Paris for the city in which it was signed, the pact was one of many international efforts to prevent another World War
- League of Nations 1926:Germany was accepted into the League of Nations in 1926 and was seen more trustworthy by other countries
- Locarno Treaties 1925: The following terms were agreed:Germany accepted the borders with France and Belgium that were decided in the Treaty of Versailles and Britain and Italy said they would protect France if Germany violated these borders,Germany accepted that the Rhineland would remain a demilitarised zone,France and Germany agreed to settle any disputes through the League
- Dawes Plan 1924: was an attempt in 1924 to solve the reparations problem, which had bedeviled international politics following World War I and the Treaty of Versailles. It was agreed that American would pay Germany £8 million in loans to help improve it economically.