Weimar Recovery, 1924-29

Stresemann organised big laons from the USA. These were part of the Dawes Plan of 1924.

This reorganised reparations and brought in foreign investment. Also, the loans helped to pay reparations and greatly helped the German industry. 

However, the loans could be recalled by the US, leaving Germany in the same position and the Dawes Plan didn't reduce the amount of reparations that needed to be paid. Famers also became angry and started to support extreme groups because they now earned only half the national average wage as food prices stayed low.

Stresemann called off passive resistance in 1923 as it had not forced the French to leave the Ruhr. He promised to keep up payments to France.

The French withdrew from the Ruhr in 1925 and the policy of fulfilment allowed later negotations over reparations. Germany were also able to begin resource production again. 

However, there was a lot of opposition to this policy - especially from right-wing extremists, who claimed it was a sign of a weak government. They felt Stresemann had 'given in' to France.

Stresemann decided to co-operate with other countries in Europe and accepted that Germany could not reclaim land. He hoped that the Allies would change the terms of the T.O.V. He improved relations with the UK and France and guaranteed borders with Belgium, France and Italy. (Locarno Treaties - 1925)

As a result, Germany was recognised again as having great power. 

However, they were still seen as responsible for WW1 and some nations refused to trade with them. Some generals believed that Stresemann should have built up the army instead. 

Stresemann introduced a new temporary currency - the Rentenmark - in 1923, and all old money was collected and destroyed. 

This stabilised the currency and had a fixed value. The Germany people showed confidence in it and it gradually restored the value of German money. 

However, the German people never forgot hyperinflation. People who had lost their savings were not compensated and they felt cheated and blamed the Weimar Republic. 

Stresemann realised the Allies would not change the T.O.V. so he promised to pay the reparations. He hoped that the Allies would lower payments in the future.

He created the Young Plan in 1929 which set a timescale and reduced reparations. France also agreed to leave Rhineland early and Germany could invest in business.

However, many Germans felt that Germany shouldn't have to pay reparations at all.