chapter five

Question 1

what three steps did Stresemann take to they get inflation under control

Answer 1

1. end of passive resistance
2. issuing of a new currency
3. balancing the budget

Question 2

end of passive resistance

Answer 2

passive resistance against the occupation of the ruhr was called of in September .
this was an unpopular choice and led to unrest and the attempted Munich putsch
stopping the passive resistance approach , led to decreasing gov expenditure as no longer paying striking workers

Question 3

issuing of a new currency

Answer 3

introduction of the rentenmark
1 rentenmark = 1 trillion marks
insufficient gold reserves to support new currency was supported by mortgages on all industrial and agricultural land
when launched gov keep tight control of amount in circulation to prevent hyperinflation
aug 1924 rentenmark is called reichsmark , now backed by gold reserves and maintained at 30% of reichsmarks in circulation
led by schacht

Question 4

balancing on the budget

Answer 4

salaries of government employees is cut
300,000 civil servants loose their job
tax increased for individuals and companies
gov debt decreasing
confidence increasing

Question 5

1923
233 companies bankrupt

Answer 5

1924
6000+ companies bankrupt

Question 6

making of the Dawes plan

Answer 6

nov 1923
Stresemann asked allies reparation committee to set up a committee of financial experts to address reparations and repayment
usa had vested interest in Germany being able to repay as reparations repayment predominently went to France who had usa loans
Charles Dawes was chairman of his committee
apr 1924
stresemann gov collapsed but he was still foreign secretary

Question 7

what did the dawes plan state

Answer 7

reparations totalling at 6.6 billion marks
1. amount paid each year was reduced until 1929 . starting at a reduced amount of 1000 million marks and raised by annual increment of 2500 ever year for 5 years .then based on industrial performance .
2. 800 million mark loan to be recieved from usa to help start plan and help rebuild infrastructure

Question 8

opinions of the Dawes plan

Answer 8

heated debate in the reichstag over it
Stresemann did not like the plans and referred to it as an “economic armistice “ , only agreed to it as a way to get foreign loans
the “national opposition” consisting of he dnvp and the Nazi Party attacked the policy and did not want any repayment

Question 9

when was the Dawes plan agreed

Answer 9

July 1924 with allies

Question 10

two benefits of the Dawes plan

Answer 10

• shows allies have an understanding of the repayment problem and inability to do so
• loans that were granted allowed economic rebuild

Question 11

what two things helped stimulate the economey

Answer 11

Dawes plan and schacht

Question 12

industrial output grew after 1924 but …

Answer 12

never reached 1913 levels until 1929

Question 13

what industries/sectors advanced

Answer 13

chemical industry , large scale production of artificial fertilisers
car and aeroplane industry grew , cars were still too expensive for the average German

Question 14

what improvements could be seen since 1924

Answer 14

living standards were rising
wages were increasing
inflation nearly 0%

Question 15

how were foreign loans used other then repaying reparations

Answer 15

building schools , housing , municipal buildings and roads overall developing the infrastructure of the country

Question 16

by the early twentieth century what had happened

Answer 16

an acute housing shortage due to the rising population , the overcrowding andinanitary conditions of the working class was associated with political instability , state provided affordable homes . in hope to keep political stability in future

Question 17

in 1925 how many dwellings were built

Answer 17

178,930
over 170,000

Question 18

how many more was this then previous year (1924)

Answer 18

70,000

Question 19

why did strikes in German industry decreases

Answer 19

new law of compulsory arbitration

Question 20

what did the public think of compulsory arbitration

Answer 20

bias and in favour of the unions resente4d the state for their interference

Question 21

1928 dispute in wages in iron and steel industry
how was this solved with arbitruiation

Answer 21

arbitrator made small increase in wages , employees refused and looked out workers for four weeks .
causing a dispute .
the workers were backed by the gov and the state paid
1927 wages up 9%
1928 wage up 12%

Question 22

how did Stresemann describe the economic recovery

Answer 22

‘dancing on a volcano’
‘if short term loans are called in, large sections of our economy would collapse ‘

Question 23

what was unemployment in 1925

Answer 23

over 1 million

Question 24

what was unemployment in 1927

Answer 24

over 3 million

Question 25

when does unemployment start to fall

Answer 25

1928

Question 26

why does unemployment fall

Answer 26

more seeking work and public spending cuts

Question 27

mining companies started reducing workforces

Answer 27

1922-25 down 136,000
1925-29 down 56,000
making efficiency savings

Question 28

why did farmers gain little from the economic recovery

Answer 28

world wide agricultural depression , led to decreasing food prices = little profit

Question 29

during inflation what did large landowners and farmers do

Answer 29

1920s more money to buy machines

Question 30

during inflation what did small landowners and farmers

Answer 30

hoard money after inflation wiped savings

Question 31

pg 39