Two effects of the work of Stresemann on Germany

Question 1

1st effect

Answer 1

1. improved Germany’s economy

• The temporary currency (Rentenmark) in 1923 and the Reichsmark in 1924 printings were tightly controlled and the value was based on the agricultural worth, stabilising hyperinflation and establishing confidence in German currency and economy.
• negotiated Dawes Plan 1924 with the US, allowing Germany to recover through industrial investment of $200 million, reaching pre-war levels in 1928.
• Dawes Plan also meant the French withdrew troops from the Ruhr, important part of Germany’s industry was restored.
• Industrial output doubled from 1923-29, wages rose and the cost of living decreased.

Question 2

2nd effect

Answer 2

2. improved foreign relations

• Locarno Treaties of 1925 insured Germany’s western borders.
• Germany was being treated equally and showed that WW1 was in the past, 1925-29 is sometimes called the ‘Locarno Honeymoon’
• caused the French to end the occupation of the Ruhr in 1925; improved the Government’s legitimacy
• Furthermore, he also entered the League of Nations & permanent council in 1926, reestablished position as industrial powerhouse, finally accepted into the ‘international family’
• As a result, Weimar government began to regain support