The recovery of the Republic Flashcards
What did Stressman set up?
the Rentenbank
What currency was issued in the Rentenbank?
Rentenmark
How did the new currency give value to German money?
tied to the price of gold
What was the new bank called?
Reichsbank
What was the purpose of the Dawe’s Plan?
help resolve the issue of German unable to pay reparations to the Allies
What were the terms of the Dawe’s Plan?
- reparations would be reduced temporarily to £50 millions yearly
- US banks agreed to loan Germany
How did the Dawe’s Plan improve Germany’s economy?
- Industrial output doubled between 1923 and 1928
- Employment, trade and income from taxation increased
What were the disadvantages of the Dawe’s Plan?
- extreme political parties disliked how Germany had to pay reparations again
- German economy depended on American loans
What was the aim of the Young Plan?
reduce total reparations debt from £6.6 billion to £2 billion
Germany was given 59 years to pay
Disadvantages of the Young Plan?
annual payments were still £50 million a year
How did the Young Plan boost the economy and industry?
lower reparations allowed the government to lower taxes
released public spending power which boosted the industry and created more jobs
Advantages of the Young Plan?
- French agreed to leave the Rhineland
- Germans rose confidence on the Weimar Republic
When did the Locarno Pact take place?
1925
What was the Locarno Pact?
treaty between German, Britain, France, Italy and Belgium
What were the terms of the Locarno Pact?
- Germany accepted its new border with France
- Germany and the Allies agreed that the Rhineland would be permanently demilitarised
- open talks about German membership of the League of Nations
