Summary 3 - Stabilising the German economy

Question 1

What did Stresemann do regarding passive resistance?

Answer 1

He ended passive resistance, the government stopped paying striking workers as they did not have the funds to continue to do so.

Question 2

What was the consequence of ending passive resistance in the Ruhr?

Answer 2

It led to serious unrest such as the Munich Putsch.

Question 3

Stresemann replaced the old worthless currency with which temporary new currency?

Answer 3

The Rentenmark
It was backed by the value of German industrial and agricultural land.

Question 4

How did Stresemann ensure that inflation remained low after he introduced the temporary Rentenmark?

Answer 4

He stopped the printing of money, thus controlling the volume of money in circulation.

Question 5

After the introduction of the Rentenmark, how long did it take for the currency to stabilise?

Answer 5

9 months
The old marks were cashed in for the temporary Rentenmark.

Question 6

What was the name of the new currency introduced by Stresemann?

Answer 6

The Reichsmark

Question 7

What was the Reichsmark backed by?

Answer 7

The Reichsmark was backed by the German gold reserve.

Question 8

The German gold reserve had to be maintained at what percentage of the value of the Reichsmarks in circulation?

Answer 8

30%

Question 9

What did Stresemann do regarding government spending and the rate of taxation?

Answer 9

Cut government expenditure
Raised taxes

Question 10

Stresemann cut the salaries of public sector workers. How many civil servants lost their jobs?

Answer 10

300,000

Question 11

The government agreed to compensate those who had lost all their investments in war bonds at what percent of their original value?

Answer 11

12.5%

Question 12

Debts were reassessed at what % of their former value?

Answer 12

15%

Question 13

There was resentment towards the Weimar Republic from which class?

Answer 13

The middle class, who lost the majority of the money that they had invested in war bonds.