Weimar recovery 1923-29
Reparations
Invasion
Currency
The reparations payments were reduced twice through the Dawes and Young plan
The 1924 reparations payment would be reduced to 1 billion marks (Dawes)
Over $3,000 million was loaned to Germany in the period 1924-1929
By 1929, the payment would be 2.5 billion marks
In 1924, the first loan was 800 million marks
The annual reparations sum was reduced by a further 20%, to 2.05 billion marks per year (Young)
Germany received loans from the United States to help to pay the reparations
Germany would now have 59 more years to pay
This meant it had real value and people believed in it
In 1924, it was replaced by the Reichsmark
It was all based off property value
It was issued in limited amounts and it was agreed not a lot of note was printed
In Nov 1923, new temporary currency called Rentenmark was created
Personal victory for Stresseman as he had removed French soldiers
First step of his fulfilment policy
This was an important part for the economy
This was good because the Ruhr could make industrial goods again
Dawes Plan also included a promise from France that it would withdraw its soldiers from the Ruhr region by 1925
Locarno treaty (1925)
This meant the Germans did not have to worry about the French invading again
Everyone hoped that this would lead to long term peace
It involved the allies like Italy, France and Britain to keep the existing boarders between them
Created a positive feeling between countries
Signed on the 1st December 1925
Kellogg-Briand Pact (1928)
This promised they would not go to war with eachother
They would only use armed forces for self defence
This involved 64 countries
They would hope to bring long term peace
Signed on the 27 August 1928
They did not recover
They did recover
Economic
Political
7 different coalitions between 1924-29
Heavily criticised by nationalists as they were still paying reparations
President Hindenburg disliked the Weimar and preferred if the Kaiser came back
Media gave Weimar Republic a hard time
Proportional representation meant no one got majority
By 1929, agricultural production was still 26% lower than it had been in 1914
Most of the American loans were short-term loans. This meant that the money was given to Germany for a limited time only
By 1929, agricultural production was still 26% lower than it had been in 1914
Unemployment remained a problem. 8.3% of Germans were out of work in early 1929.
After 1923, farmers suffered massive fall in the price of food
Weimar government did not help small business
Industrial recovery slowed down after 1927
Economic
Political
Stresseman success meant people had a positive view on politicians in the Weimar Republic
Extreme parties did very bad in the elections
4 chancellors between 1924-29 showing more stability
The Nazis had 62% fewer ‘deputies’ in 1928, compared to 1924
President Hindenburg was a WW1 general and helped to improve the image and popularity of the Weimar Republic
Stresemann succeeded in reducing the reparations payments
he introduction of the Rentenmark and the Reichsmark ended the hyperinflation
5 million houses built between 1924-29
German industrial production increased by 45% between 1924 and 1928. This meant that there were more jobs available and more money was being made in Germany
The economy did develop and expand after 1925. New factories, houses and railways were build
Wages for the industrial workers went up