Stresemann Years

Stresemann Years

Promised to continue reparations payment and stopped passive resistance.
1. Solved the problem of French invasion of the Ruhr. Workers went back to work which meant got the goods it needed for reparations thus leaving the Ruhr, this also helped to solve hyperinflation as goods were being produced. This led to the Allies being willing to negotiate the reparations payments due to his willingness to solve the Ruhr crisis.
Introduced New Currency.
1. Stresemann recalled the German Mark and replaced it with a new currency called the Rentenmark. This solved the problem of the currency losing value and put a stop to Hyperinflation, people started to have confidence in the German currency again. The new Rentenmark stabilised the value of money and the prices returned to normal.
Negotiated Dawes plan
1. The Dawes Plan was a signed agreement by the allies, that America could provide Germany with loans (800 million gold marks) which allowed Germany to start repaying their reparation bills, the allies agreed to spread the reparations owed over a longer period of time and reducing the annual amount paid.
2. Due to solving the reparations problem the German economy was able to recover using the American loans however this meant that Germany was almost totally dependent on the American loans. Their only stability came from the Ruhr which the French withdrew from.
Negotiated the Young Plan !929
1. Reduced the total amount of Reparations Germany had to pay by 25%. Also because Germany had showed it's willingness to co-operate with the allies thus inproving relations between them. This led to the withdrawal from Germany by 1930 and 1926 Germany was allowed to join the League of Nations
Enjoyed Economic Prosperity
1. After the 1923 crisis foreign banks (mostly American) were willing to loan Germany vast sums of money. Using this money 3 million new homes, new roads and railways were built. As a result the German industy produced more goods and exports increased.
2. Germany seemed to become the most modern and prosperous country outside the USA which led to political stability ( the Wiemar Party won election and created a more stable goverment, opposition parties i.e. the Nazis did not gain support as Germans were content).
Brought Political Stability
1. On November 9th 1923, Hitler organised the Munich Putch, However Stresemann won the support of the of the police and army who helped crush the rebellion. The Nazi party was banned and Hitler arrested.
2. Extremist Parties did badly in the election, the Nazi party remained the smallest party in the Reichstag up to 1928. this meant political stability as Stresemann managedto win the support of the people, who were happy with the economic prosperity from Stresemann's policies .

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	Created by Beth Aspinwall over 7 years ago