Please enable JavaScript.
Coggle requires JavaScript to display documents.
how did the german economy recover after 1923 - Coggle Diagram
how did the german economy recover after 1923
hjalmar schacht
appointment of hjalmar schacht as reich currency commissioner and head of the reichsbank
schacht repealed the reichsmark with the rentenmark with a exchange of 1 rentenmark to 1 trillion marks
there where strict limits on how much of the new currency could be printed
it was backed up with industrial assets and land so there was greater confidence in it
actions as head of the reichsbank
a range of fiscal measures where adopted to help curb inflation
lending rates where controlled
government stopped offering credit to industry
new taxes on industry and individuals where introduced which allowed the government to invest a greater proportion of the nations wealth.
the post 1924 'prosperity'
relationships with the trade unions became much more productive with the establishment of a arbitration board in 1926.
there was advances in ersatz substitutes
germany became much more self sufficient
aluminium extracted from german clay and used inmunitions instead of copper
wood pulp used in textile mills
synthetic cellulose replaced cotton in the manafacturing of expolives.
nitrates from the air was created and used in artificial fertiliser
small amounts of synthetic rubber was also created
negation of the dawes plan in april 1924 opened up the country to american loan to the tune of 25.5 billion reichsmarks allowing for investment in industry .
advances in chemical and electrical technology
industry was rationalised
after the currency reforms credit dependent business collapsed and prudently run business prospered
meaning more efficiency the german economy
cartelisation became rampant with 300 by 1926
efficiency of blast furnaces trebled
vereinigte stahlwerke formed in 1926 linked th steel coal and iron interests of thyssen,stinnes,phoenix and the otto wolf groups and controlled 40-50 percent of total iron and steel production and 36 percent of total coal
advances in chemical industry-large scale advances in fertilizers at the leuna works
siemens had a virtual monoply over the electricalindustry
car and aeroplane industry expanded
however not everything was looking up
the country was dependent on exports on forgiencredit
small business and farmers where pushed out by cartelisation
unemployment peaked at 20 percent in 1926
germany was living beyond its means with extremely generous pension and welfare schemes
the loss of resources was evident
coal production was at 79 percent of pre war capacity
pig iron production was at 68 percent
steel production at 86 percent
inflation went below 0 in 1926 and pre war production was exceeded by 1928-1929
international treaties
economic
dawes plan
german reparation concerns where eased and germany was opened up to american credit
young plan
annual reparations reduced by 75 percent
membership of the league of nations
germany became a member of the permanent council in 1926 giving it a platform to complain of its grievances such as the failure of other nations to disarm
treaty of berlin
reaffirmed the 1922 treaty of rapallo which allowed for greater military and economic co-operation between the two "outcasts of europe" also had a pledge of neutrality if either nation was invaded
kellog-braind pact
germany along with 64 other nations signed the kellogg briand pact which condemed war as a way to solve international disputes
locarno treaty
demilitarized the rhineland of allied troops
germany would respect the western frontier as set out in the treaty of versailles