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Stresemann's Recovery of the Republic 1924-29 (The Rentenmark…
Stresemann's Recovery of the
Republic 1924-29
Role of Stresemann
August 1923-Gustav Stresemann was appointed as Chancellor to deal with hyperinflation's problems
It was his decision to call off passive resistance in the Ruhr and to negotiate the Dawes Plan
The Rentenmark
November 1923-he introduced the Rentenmark to replace the German mark.This was a temporary measure to stabilise the currency and restore confidence.
The Rentenmark's value was based on property values rather than on gold reserves.
It was converted into the Reichsmark the following year, backed by gold reserves.
The Dawes Plan
The Dawes Pan of 1924 reorganised Germany's reparation payments:
Payments were staged to match Germany's capacity to pay
Payments began at 1 billion marks for the first year and increased over a period of four years to 2.5 billion marks a year
In return, the French withdrew their troops from the Ruhr
American loans
The Dawes Plan also aimed to boost the German economy through US loans
Over the next 6 years, Us companies and banks gave loans of nearly $3 billion
The Young Plan
In 1929, Germany negotiated a further change to reparations known as the Young Plan:
A timescale for payment was set, with Germany making payments until 1988
The reparation figure was reduced from £6 billion to £1.85 billion
Stresemann's achievements abroad
He greatly improved relations with Britain and France by ending passive resistance in the Ruhr.The Locarno Pact 1925 followed signed by Germany, Britain, France, Italy and Belgium. By this agreement, Germany agreed to keep its existing borders.
Germany became a member of the League of Nations for the Pact to come into operation.It was given a permanent seat in September 1926, which recognised its great return to a Great Power.
In 1928, Germany signed the Kellogg-Briand Pact along with 64 other nations.It was agreed that these nations would keep their armies for self-defence but would solve all future disputes by 'peaceful means'.
Key individual
In 1919, he became leader of the German People's Party. From August to November 1923, he served as Chancellor of Germany and, later in the same year, he was appointed foreign secretary, a position he held until his death in 1929