Stresmann's Years.

Promised to continue payments and stopped passive resistance.
1. So helped to solve problem of the French invasion of the Ruhr, meaning that workers went back to work.
2. Because of that, France got the goods to pay reparations, so they left the Ruhr and solved hyperinflation as goods were being produced.
3. THUS : Because of his willingness to solve the problems of the Ruhr crisis, the Allies were willing to open negotiation or reparations payment.
Introduced new currency.
1. Replaced the worthless German marks with the currency called the RENTENMARK
2. This solved the problem of the currency losing value and hyperinflation because people began to have confidence in the currency again.
3. THIS: the new German currency stabilised the value of money and price began to return to normal
Negotiated Dawes Plan.
1. This was signed in agreement by the Allied countries- France, Britain and USA. American provided LOANS (800 million gold marks) and allowed the German to start repaying reparations and pay the in a longer period.
2. Helped to solve the problems of reparations as her economy could recover with the loans.
3. THUS: could afford to pay reparations again.
Negotiated Young Plan 1929.
1. Reduced the reparations payment still further.
2. Because Germany showed her willingnees to co-operate the Allied countries and this improved Germany relation with them.
3. THUS: withdrawal of Allied troops from Germany by 1930 and 1926 Germany was allowed to join the League of Nations.
Enjoyed Economic Prosperity.
1. After recovering from the crisis in 1923, foreign banks (mostly America) were willing to loan Germany vast sums of money. With this money 3 million new homes, new roads and railways were built.
2. As a result German industry produced more goods and exports increased.
3. THUS Germany seem the most modern and prosperous country outside USA and this led to political stability- Weimar party won elections and more stable government- extremist/ opposition parties like nazis and communists did not gain support because Germans were happy.
Brought Political Stability.
1. 9 November 1923 Hitler organised the Munich Putsch- Hitler expected to gain power through rebellion because hyperinflation had caused resentment and anger amongst the German people and Hitler thought they would support his Putsch.
2. HOWEVER- Stresmenn managed to win support of army and police who helped him crush rebellions- Revolt was successfully crushed by the police and Nazis and Hitler arrested and sentenced to 5 yrs jail- Nazi party was greatly weakened as many Nazis and their leaders were arrested- Nazi party was banned and Hitler was not allowed to speak in public(until 1928)
3. THUS- Extremist parties did badly at the elections- Nazi party remained the samellets part in the Reichstag up to 1928- no support from people= Political stability as Stresmann managed to win upport of German people. Germany was happy with economy prosperity brought by Stresmann's policies and were uninterested in extremists politics. The Weimar government was more stable with a Grand Coalition government after the election of 1928 and has 60% support from Reichstag.

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	Created by Hadasa McFarland over 7 years ago