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Recovery under Stresemann, The Retenmark - Coggle Diagram
Recovery under Stresemann
Stresemann introduced a new, temporary currency due to hyperinflation. This was called the
Retenmark.
If it failed, the government promised to exchange the money for shares in land or industry.
Confidence was restored and in Aug 1924, he introduced the
Reichsmark
which was controlled by the newly independent national bank, the
Reichsbank
Deposits in German banks rose from
900 marks at the start of 1924
to
4900 marks at the end of 1926
The Daws Plan
Tackled reparations as Germany was unable to pay in 1922 as it was too high
Annual Payments were reduced to an affordable level
American banks agreed to invest 800 million marks in the German Industry
Effects of the Daws Plan
Germany resumed reparations payments
The French left the Ruhr
The German economy recovered
The Locarno Pact
Stresemann signed the Locarno Pact with Britain, France, Italy and Belgium
Germany agreed to keep to its new 1919 border with France and Belgium
In return, the allies agreed to remove troops from the Rhineland & discuss German entry to the League of Nations.
The League of Nations
In
1919
the allies founded the League of Nations to work for world peace. Germany was excluded
In
1926
Stresemann persuaded the League to accept Germany as a member
Germany was now
trusted
and
treated as an equal.
Germany even got a place on the Leagues council
The Retenmark