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Problem 1 : Hyper inflation.
Problem 2 : The French troops in the Ruhr.
Stresemann’s solution : He stopped the
printing of paper money and replaced all old
money with a new currency called the
Rentenmark. One Rentenmark replaced 1000
billion marks.
Stresemann’s solution :He knew that French troops
had invaded the Ruhr because Germany had not
kept up their reparations payments. In 1924,
Stresemann attended a meeting with French, British
and American leaders. The result was the Dawes
Plan , which allowed the Germans to only pay what
they could afford. They also had longer to pay.
Success? Yes. Germans quickly accepted the
new currency and hyperinflation ended.
However, people who had lost all their
savings never got their money back … and
forever blames Stresemann and his
government.
Success? Yes. French troops left the Ruhr. However,
some Germans thought that Stresemann had ‘given
in’ to the French by not demanding a complete end
to all reparations – many thought that Germany
shouldn’t be paying anything at all! On 1929 the
Young Plan further reduced the amount Germany
owed … but they still had to pay up to 1988!
Problem 3 :No one trusted Germans
Stresemann’s solution : He tried to improve Germany’s
relationship with other countries.
• In 1925 Germany signed the Locarno Pact with Britain,
France and Italy. They promised not to invade each other
• In 1926 Germany was allowed to join the League of
Nations, an international peace keeping organisation
• In 1928 Germany, along with 64 other countries, signed the
Kellogg-Briand Pact. They all agreed not to go to war
except in self defence.
Success? Germany definitely became a major power again
under Stresemann. The League of Nations even gave
Germany ‘great power status’, which meant they took part in
major decisions. However some Germans criticised
Stresemann for not demanding some of the land back from
countries that had taken it from Germany at the end of the
Great War!
Problem 4 :German industry was in trouble after the
Great War – factories were run down, there were few
jobs and poor schools, housing and hospitals.
Stresemann’s solution :He organised big loans from
America (this was part of the Dawes Plan). The
Germans built new factories, housing, hospitals, schools
and roads. This meant more jobs with Germans earning
more money. Even some American companies (like
Ford and Gillette) set up factories in Germany.
Success? Slowly, Germany became more prosperous.
Some called it a “Golden Age” A night out in Berlin in
the late 1920’s – cinemas, music halls, night clubs, beer
halls, galleries – was meant to be one of the greatest
experiences in the world! However, some - even
Stresemann himself – feared that Germany relied on
American loans too much. What if the Americans
suddenly wanted their money back?