Dawn Of The Golden Age

Question 1

Who was Hjalmar Schacht?

Answer 1

Director of the national bank from 1916
Co founded DDP in nov 2018
1923 : Reich Currency commissioner and head of Reichsbank introduced the retenmark
Negotiated Dawes and young
Nazis economic minister 1934-1937
Removed from Reichsbank in 1939

Question 2

What are the 3 ways the economy stabilised leading to the dawn of the golden age?

Answer 2

End of passive resistance in Ruhr
Issuing a new currency
Balancing the budget

Question 3

4 pints about end of passive resistance?

Answer 3

1) Ended in Sep 1923
2) Unpopular and risky led to Munich Putsch
3) Stresemann believes there was no alternative
4) Stopping paying resisting workers would help gov with saving

Question 4

8 points about the new currency? ( Need 4-5 )

Answer 4

1) Nov 1923 Retenmark introduced
2) 1 retenmark = 1 trillion Reichmarkn
3) Supported by mortgage on all industrial and agricultural land as there’s no gold to back it up.
4) Gov controlled how much in circulation
5) Old marks gradually collected
6) August 1924 - now backed by 30% gold reserve
7) All monitored by Hjalamar Schacht ( German Economist)
8) Those who lost savings with collapse of old currency gained nothing

Question 5

7 points about balancing the budget?

Answer 5

1) Cut spending and raised taxes
(people and companies)
2) Gov employee salary cuts
3) 300,000 civil servants lost jobs
4) Confidence grew as debt fell
5) Well-managed companies were careful not to build up too much debt and so prospered
6) Weaker companies that relied on credit crumbled
7) No. of bankrupt companies
1923 = 233 , 1924 = 6000+